Primary hosts Isbank, Citic, Korea Resources; Lat-Am spreads widen, Middle East’s tighten

By Christine Van Dusen

Atlanta, Oct. 23 – Turkey’s Turkiye Is Bankasi AS (Isbank), China’s Citic Securities Co. Ltd., Chile’s Sociedad Quimica y Minera de Chile SA (SQM) and Korea Resources Corp. sold notes on Thursday as Middle Eastern bond spreads tightened.

“Lower U.S. Treasury prices means one thing – tighter spreads,” a London-based trader said. “Plenty of action in the Qatar sukuk space, this time the 2023s. It does feel like some paper has found its way into the market there.”

Bonds from Bahrain closed between 5 basis points and 8 bps tighter, as did those on the Dubai curve.

“Prices were softening up a little into the close, given the rates move, but spreads were still tighter,” he said.

From Latin America, sovereign spreads started Thursday’s session wider by about 3 bps as the Treasury moves fueled some selling, a New York-based trader said.

High-yield Latin American names got a boost along with other risk assets, he said, with PDVSA’s 2024s moving up from 46½ to 47 and its 2026 from 45¾ to 46.

In deal-related news, India’s Tata Motors Ltd. gave guidance while roadshows were set for Kazakhstan’s KazMunaiGaz National Co., South Africa’s MTN Group Ltd. and Peru.

Market sources were also whispering about a possible issue of $450 million of notes from Lebanon.

In the day’s biggest new issue, Turkey’s Isbank sold $750 million 5% notes due April 30, 2020 at 99.337 to yield mid-swaps plus 335 bps, following talk in the 355 bps area.

Citigroup, Commerzbank, Mitsubishi UFG, Natixis Securities and Standard Chartered Bank were the bookrunners for the Rule 144A and Regulation S deal.

Citic Securities prints bonds

In another new deal, China’s Citic Securities priced $650 million 3½% notes due Oct. 30, 2019 at 99.945 to yield Treasuries plus 205 bps, a market source said.

The notes were talked at a spread in the 210 bps area.

Citic Securities International, Bank of China, Citigroup, HSBC, Standard Chartered Bank, ABC International, China Citic Bank International, Credit Agricole CIB, JPMorgan and UBS were the bookrunners for the Regulation S deal.

Citic Securities is a Beijing-based investment bank and is a subsidiary of Citic Group.

SQM issues notes

Chile’s SQM priced $250 million 4 3/8% notes due Jan. 28, 2025 at 99.41 to yield Treasuries plus 215 bps, a market source said.

The notes were talked at a spread in the 235 bps area.

Scotiabank, BofA Merrill Lynch and JPMorgan were the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used to repay debt and for general corporate purposes.

Issue from Korea Resources

Korea Resources priced CHF 100 million 0.75% notes due Nov. 12, 2019 (A1/A+/) at 100.171 to yield mid-swaps plus 50 bps, a market source said.

BNP Paribas and UBS were the bookrunners for the deal.

Korea Resources is a mining company based in Seoul, South Korea.

Tata Motors gives guidance

India’s Tata Motors set talk at 4 5/8% to 4¾% for a benchmark-sized issue of dollar-denominated notes due in 5½ years, a market source said.

ANZ, Citigroup, Credit Suisse and Standard Chartered Bank are the bookrunners for the Regulation S deal.

The proceeds will be used to refinance existing external commercial borrowing, for new capital expenditures and other corporate purposes.

Tata Motors is an automaker based in Mumbai.

KazMunaiGaz on roadshow

Kazakhstan’s KazMunaiGaz is on a roadshow for a dollar-denominated issue of notes, a market source said.

Citigroup, Credit Suisse, Deutsche Bank and UBS are the bookrunners for the deal.

KazMunaiGaz is a gas company based in Astana, Kazakhstan.

MTN Group sets roadshow

South Africa’s MTN Group will set out on Oct. 27 for a roadshow to market a debut issue of dollar-denominated notes, a market source said.

Deutsche Bank is the global coordinator for the Rule 144A and Regulation S deal. BofA Merrill Lynch and Rand Merchant Bank are the joint lead managers.

The roadshow will take place in the United States and United Kingdom.

MTN Group is a Johannesburg-based telecommunications company.

Marketing trip for Peru

Peru will set out on Oct. 27 for a roadshow to market a possible issue of notes, a market source said.

BBVA, BofA Merrill Lynch and Morgan Stanley are the bookrunners for the potential deal.

The roadshow will start in San Francisco and travel to Los Angeles and London before concluding on Oct. 29 in Boston and New York.

Falabella does deal

On Wednesday, Chile’s SACI Falabella priced a $400 million issue of 4 3/8% notes due Jan. 27, 2025 99.932 to yield 4.384%, or Treasuries plus 215 bps, a market source said.

JPMorgan, Credicorp and Scotiabank were the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used to refinance debt and for general corporate purposes.

Falabella is a retail company based in Santiago.

Lithuania attracts orders

About 43% of the orders for Lithuania’s new issue of €1 billion 2 1/8% notes due Oct. 29, 2026 came from Germany and Austria, a market source said.

The notes priced on Wednesday at 97.957 to yield 2.322%, or mid-swaps plus 100 bps.

The notes were talked at a spread in the 115 bps area.

HSBC, JPMorgan and Societe Generale CIB were the bookrunners for the Regulation S deal.

About 14% of the orders came from the United Kingdom, 7% from Benelux nations, 7% from the offshore United States, 6% from Central and emerging Europe, 6% from France, 6% from Italy, 6% from Switzerland, 2% from Asia and others and 2% from Iberia.

Fund managers picked up 63%, insurers and pension funds 24%, banks and private banks 8% and central banks and others 5%.

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