Singapore’s Mapletree Logistics prices notes; trading of Lat-Am, Middle East mixed

By Christine Van Dusen

Atlanta, May 16 – Singapore’s Mapletree Logistics Trust sold notes on Monday and emerging markets assets had “a tough time getting going,” as the rally in equities and oil prices made little positive impact on spreads.

Brazil’s five-year credit default swaps spreads closed at 329 basis points from 328 bps while Mexico’s moved to 166 bps from 167 bps, a New York-based trader said.

“Cash prices felt heavy throughout the session, as U.S. Treasury weakness has levels adjusting to the left,” he said. “Lat-Am high-yield finishes mixed on the day, with Argentina higher, whereas Venezuela moves lower after a nice run higher recently.”

Argentina’s Bonar 2024s traded at 110.20 from 110. Venezuela’s 2027s closed at 43.50 from 45.50, and PDVSA’s 2017s finished Monday at 62.50 from 63.25.

“Flows were very light to start the week, with a lack of conviction,” he said.

Trading of Middle Eastern bonds was a “mixed bag overall,” a London-based trader said, “with an ongoing battle between technicals and Street shorts versus upcoming supply and ratings downgrades.”

Bahrain’s bonds were most affected by their downgrade, with sellers emerging for the sovereign’s 2026s and 20244s, he said.

“Perpetuals are popular again, with the exception of Emirates Islamic Bank, where there seemed to be some paper around,” he said.

In deal-related news, Dubai-based lender Emirates Islamic Bank mandated bookrunners for a dollar-denominated issue of benchmark-sized Islamic bonds, a market source said.

HSBC, Standard Chartered, Emirates NBD, Dubai Islamic Bank, Noor Bank and Bank ABC are the bookrunners for the sukuk.

Sources were also whispering about a possible issue of notes from Dubai’s Noor Bank.

Mapletree sells bonds

In its new deal, Singapore’s Mapletree Logistics Trust priced S$250 million 4.18% perpetual notes at par to yield 4.18%, matching talk, a market source said.

DBS Bank and OCBC were the bookrunners for the deal.

The proceeds will be used for general corporate funding purposes.

Mapletree is a Singapore-based real estate investment trust.

Hipotecario sets size

Argentina’s Banco Hipotecario SA is expected to issue an up to $200 million tap of its notes due Nov. 30, 2020, a market source said.

BofA Merrill Lynch and Itau are the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used for working capital.

Hipotecario is a Buenos Aires-based commercial bank.

DP World seeks issuance

Dubai’s DP World is looking to print a benchmark-sized issue of dollar-denominated notes, a market source said.

The lender is said to have picked 15 banks as bookrunners for the deal, including Emirates NBD Capital and Citigroup.

The proceeds will be used for a tender offer for the company’s sukuk due in 2017.

Other details were not immediately available on Monday.

Ecopetrol could issue

Colombia’s Ecopetrol SA could issue up to $1 billion of new notes, a market source said.

The proceeds will be used for the company’s financing needs.

Other details were not immediately available on Monday.

The Bogota-based petroleum company’s 7 5/8% 2019s – which traded Thursday at 111¾ bid, 112.35 offered – were seen Monday at 111.85 bid, 112½ offered.

Ecopetrol’s 5 7/8% note due 2023 that traded Thursday at 99.90 bid, 100.55 offered were spotted Monday at par bid, 100½ offered.

The 4 1/8% notes due 2025 that were quoted at 88 bid, 88¾ offered on Thursday moved to 88¼ bid, 89.15 offered on Monday.

And the 7 3/8% notes due 2043 moved from Thursday’s 93¼ bid, 94 offered to 93½ bid, 94½ offered on Monday.

© 2015 Prospect News.
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