Dar Al-Arkan, CAF, Longfor sell bonds; Bahrain, Aldar Properties tighten; trading 'active'

By Christine Van Dusen

Atlanta, May 21 - Saudi Arabia's Dar Al-Arkan Real Estate Development Co., Venezuela's Corporacion Andina de Fomento (CAF) and China's Longfor Properties Co. Ltd. sold notes on Wednesday as spreads for emerging markets bonds tightened.

"In saying that, I saw some decent selling, primarily from international accounts," a London-based trader said. "It felt like some further rotation into parts of the Russia complex."

The sovereign's five-year bonds traded "fairly well" at 207 bid, 209 offered, he said.

"Elsewhere, regionally one has to take a hat off to the Government of Dubai paper," he said. "Decent steepening going on, with the 2015s and 2017s strongly supported."

Aldar Properties PJSC's 2018s moved higher on Wednesday, trading at 104¼ bid, 104 3/8 offered.

"That's 12 basis points tighter on the month," he said. "The $1.25 billion Aldar 2014 matures on Tuesday of next week. It's had some life, that bond."

Meanwhile, Bahrain's 2022s and 2023s have narrowed 30 bps on the month, he said.

"Active day," he said.

For its new deal, Saudi Arabia's Dar Al-Arkan Real Estate priced a $400 million issue of 6½% Islamic bonds due May 28, 2019 at 98.953 to yield 6¾%, a market source said.

The notes were initially talked in the high-6% area, then guidance was revised to 6¾%.

Bank Alkhair, Deutsche Bank, Emirates NBD Capital and Goldman Sachs were the global coordinators and joint bookrunners. Al Hilal Bank, Barwa Bank, Al Rayan Investments and Qinvest were joint bookrunners for the Regulation S deal.

In other deal-related news, Korea Export-Import Bank (Kexim) set talk, Thai Airways mandated banks, Senegal sought bookrunners and Trinidad Cement Ltd. postponed a deal while Israel Electric Corp. Ltd. and Poland's Polska Grupa Energetyczna SA (PGE) planned roadshows.

CAF sells notes

Venezuela-based lender CAF on Wednesday sold €750 million 1 7/8% notes due May 29, 2021 at 99.727 to yield 1.917%, or mid-swaps plus 75 bps, a market source said.

The notes priced tighter than talk, set at a spread of 85 bps to 90 bps.

BBVA, Credit Agricole CIB, Credit Suisse, Deutsche Bank and HSBC were the bookrunners for the Regulation S deal.

Issuance from Longfor

China-based investment holding company Longfor Properties sold RMB 2 billion 6¾% notes due May 28, 2018 at par to yield 6¾%, a market source said.

The notes priced at the tight end of talk, set at 6¾% to 6 7/8%.

HSBC and Morgan Stanley were the bookrunners for the Regulation S deal.

The proceeds will be used for refinancing and general corporate purposes.

Empresas ICA launches

Mexico-based construction company Empresas ICA launched a $700 million issue of notes due in 10 years at a yield of 9.2%, a market source said.

The notes were initially talked at a yield in the mid-9%.

Barclays, Credit Suisse, Deutsche Bank, Morgan Stanley were the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used to repay certain indebtedness and fund a tender offer.

Kexim gives guidance

Korea's Kexim set talk in the mid-swaps plus 70 bps area for its planned issue of NZ$100 million notes due in December of 2017, a market source said.

ANZ and Westpac are the bookrunners for the Regulation S deal.

And Thai Airways mandated Barclays and Citigroup as bookrunners for a dollar-denominated issue of perpetual notes.

Roadshow for Israel Electric

Israel Electric will set out on a roadshow on May 26 to update investors on recent developments, a market source said.

Barclays is arranging the non-deal roadshow.

Israel Electric is a Haifa, Israel-based publicly controlled utility.

PGE deal ahead

Poland-based power company PGE has mandated BNP Paribas, Citigroup, ING and Societe Generale CIB as bookrunners for a roadshow beginning on May 26, a market source said.

A euro-denominated issue of Regulation S notes is expected to follow.

PGE is a Warsaw-based power company.

Senegal seeks issuance

Senegal is looking to hire banks as bookrunners for a dollar-denominated issue of notes, a market source said.

The sovereign previously announced plans for a $500 million issue of 10-year bonds.

Trinidad Cement postpones

Trinidad Cement postponed its planned issue of $325 million-equivalent notes due in seven years due to market conditions, a market source said.

The deal was expected to include $275 million to $300 million in notes and a Trinidad and Tobago dollar-denominated tranche worth $25 million to $30 million.

GMP Securities, Jamaica Money Market Brokers and Byron Capital Markets were the bookrunners for the Rule 144A and Regulation S deal.

Proceeds from the Rule 144A and Regulation S transaction were to be used to repay all outstanding borrowings and for general corporate purposes.

Ecopetrol issues

On Tuesday, Colombia's Ecopetrol SA sold $2 billion 5 7/8% notes due May 28, 2045 at 99.336 to yield 5.922%, or Treasuries plus 255 bps, a market source said.

The notes were talked at a spread in the 275 bps area.

Deutsche Bank and Goldman Sachs were the bookrunners for the Securities and Exchange Commission-registered deal.

The proceeds will be used for general corporate purposes.

Ecopetrol is a Bogota, Colombia-based petroleum company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.