Bank of Baroda prints notes; Russia tightens; Bahrain bonds suffer; roadshows underway

By Christine Van Dusen

Atlanta, July 8 – India’s Bank of Baroda sold notes on a firm Tuesday for bonds from Central and emerging Europe, with credit default swap spreads from Russia tightening about 5 basis points, a London-based analyst said.

“This comes in spite of several potentially negative headlines,” she said. “Last night Presidents Obama and Hollande applied further pressure to President Putin to end the conflict in Ukraine, and stated their support for the Ukraine military’s actions if the separatists do not seek peace talks.”

From Latin America, corporate bonds were slightly stronger on Tuesday, a New York-based trader said.

The recent issue of 4½% notes due 2024 that Chile-based utility company Colbun SA priced at 98.615 was hovering at about 99.40.

And Peru-based InRetail Shopping Malls’ recent 6½% notes due 2021 that priced at 99.309 stood at 103 bid, he said.

Overall, flows for bonds from the region were mixed, he said.

Looking to the Middle East, bonds were more active, with spreads widening, a London-based trader said.

The move in Treasury rates helped Saudi Electricity Co., International Petroleum Investment Co. and some perpetual bonds stay well-bid, he said.

“Late in the day we even saw some low-ball bids creep up on the Kuwait complex, which had been very heavy over the past two to three weeks,” he said. “Etisalat was popular as well, especially the euro bonds, with the long-dated 2026 euro bonds closing at 100.80, bid side.”

Also on Tuesday, roadshows were underway for China’s Jinchuan Group Ltd. and China’s Emperor International Holdings Ltd. while Brazil’s Caixa Economica Federal and Mexico’s Unifin Financiera SAPI de CV planned marketing trips of their own.

Middle East in focus

Bonds from Qatar National Bank and National Bank of Abu Dhabi remained solid, the London trader said.

“Very tricky, sourcing five-year paper on both curves,” he said.

Meanwhile, bonds from Bahrain suffered.

“Tough month for Bahrain, pushing the best part of 40 bps wider,” he said.

Baroda sells bonds

In its new deal, India’s Bank of Baroda priced $250 million 4 7/8% notes due July 23, 2019 at 105.192 to yield 3.732%, or Treasuries plus 203 bps, a market source said.

HSBC and Standard Chartered Bank were the bookrunners for the deal.

The lender is based in Valdodara, India.

Roadshow for Jinchuan

China-based metal producer Jinchuan Group set out on Tuesday for a roadshow to market a Regulation S-registered issue of renminbi-denominated notes, a market source said.

Morgan Stanley, Bank of China, Wing Lung Bank and HSBC are the bookrunners for the deal.

Emperor markets notes

China’s Emperor International Holdings departed Monday on a roadshow to market a Hong Kong dollar-denominated issue of notes, a market source said.

Emperor Securities, Guotai Junan Securities, ICBC and Bank Sinopac are the bookrunners for the Regulation S-registered marketing trip.

Emperor International is an investment holding company based in Hong Kong.

Caixa sets marketing trip

Brazil-based lender Caixa Economica Federal will set out on Wednesday for a roadshow to market a dollar-denominated issue of notes, a market source said.

BB Securities, BofA Merrill Lynch, Bradesco BBI, BTG Pactual, Deutsche Bank Securities and HSBC are the bookrunners for the Rule 144A and Regulation S deal.

The roadshow begins in London and will travel to Hong Kong, Switzerland, Singapore, Boston and Los Angeles before concluding on July 15 in New York.

Unifin roadshow ahead

Mexico’s Unifin Financiera has planned a roadshow for a dollar-denominated issue of notes, a market source said.

The marketing trip will begin on Wednesday in Switzerland and Santiago and travel to London and Los Angeles before concluding on July 14 in New York and Boston.

The issuer is a financial institution based in Mexico City.

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