Issuance from Argentina, Pakistan, MTN Group, EuroChem; Bahrain in focus; EM roadshows set

By Christine Van Dusen

Atlanta, Oct. 5 – Argentina, Pakistan, South Africa’s MTN Group Ltd. and Russia’s EuroChem Global Investments Ltd. sold notes on Wednesday, and Bahrain’s new deal received attention, as Treasury yields stabilized following Tuesday night’s surge on concerns about the European Central Bank’s eventual taper of its bond-buying program.

“A very busy day, headlined by the return of Bahrain to the markets,” a London-based trader said. “Grey markets were pretty solid first thing, trading up circa 75 cents to 85 cents on both tranches. The credit was met with a fairly positive macro backdrop, with oil being green and the market nicely well supported.”

The sovereign priced a $2 billion issue of notes due in 2024 and 2028, a market source said.

The $1 billion 5.624% Islamic bonds due Feb. 12, 2024 priced at par to yield 5.624%, or mid-swaps plus 424 basis points, following talk in the 6% area.

The $1 billion 7% conventional bond due Oct. 12, 2028 priced at par to yield 7%, or mid-swaps plus 539 bps. Talk was set in the 7¼% area.

Bank ABC, BNP Paribas, Credit Suisse, JPMorgan and Standard Chartered Bank were the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used for general governmental purposes.

An hour into trading, the 2024s were lifted to 100.85 and the 2028s to 101.

“That was the proverbial line in the sand, as steadily since then we have pushed lower and lower,” he said. “Still closing tighter on the day, mind you, given the decent move in rates market.”

The 2024s closed the European session on Wednesday at 100.43 bid, 100½ offered and the 2028s at 100½ bid, 100 5/8 offered.

“Very busy on these two from the word ‘go,’ with overall balanced flow,” he said.

Middle East active

Elsewhere among Middle Eastern credits, trading was active, the trader said.

“Very interesting market, and secondary trading remains very much a tricky occupation at the moment,” he said. “Plenty of technical bonds out, all about realizing why they are technical and if they will remain that way.”

Argentina prints two tranches

In its new deal, Argentina priced €2.5 billion two-tranche issue of notes due 2022 and 2027, according to a filing.

The €1.25 billion 3 7/8% notes due Jan. 15, 2022 priced at 99.432 to yield 4%, following talk in the 4 3/8% area.

The €1.25 billion 5% notes due Jan. 15, 2027 priced at 99.045 to yield 5 1/8%, following talk in the 5½% area.

BBVA, BNP Paribas and Credit Suisse were the bookrunners for the Regulation S deal.

The proceeds will be used for general governmental purposes.

Pakistan prices notes

Pakistan priced $1 billion of 5½% Islamic bonds due Oct. 13, 2021 (B3//B) at par to yield 5½%, a syndicate said.

Citigroup, Deutsche Bank, Dubai Islamic Bank, Noor Bank and Standard Chartered Bank were the bookrunners for the Rule 144A and Regulation S deal.

“I think locals will get a fairly full fill on this one, but the curve is recovering some supply spread-widening we had,” a trader said.

MTN sells bonds

South Africa’s MTN priced a two-tranche issue of $1 billion notes due in 2022 and 2026, a market source said.

The deal included $500 million 5.373% notes due Feb. 13, 2022 that priced at par to yield 5.373%.

The $500 million 6½% notes due Oct. 13, 2026 priced at par to yield 6½%.

Citigroup, JPMorgan, Credit Suisse, Deutsche Bank and ANZ were the bookrunners for the Rule 144A and Regulation S deal.

MTN Group is a Johannesburg-based telecommunications company.

Deal from EuroChem

In another new deal, Russia’s EuroChem priced $500 million 3.8% notes due April 12, 2020 at par to yield 3.8%, following talk in the 4% area, a market source said.

Citigroup, Goldman Sachs, HSBC, ING, JPMorgan and Sberbank were the bookrunners for the Rule 144 and Regulation S deal.

The proceeds will be used to fund a tender offer for its outstanding $750 million 5 1/8% notes due in 2017. Other proceeds will be used to repay other indebtedness, and for general corporate purposes.

The fertilizer company is based in Moscow.

Russian Railways does deal

Russian Railways JSC – via RZD Capital plc – priced $500 million 3.45% loan participation notes due Oct. 6, 2020 at par to yield 3.45%, according to a company filing.

JPMorgan and VTB Capital were the bookrunners for the Regulation S deal.

The proceeds of the notes will be used to finance the purchase of $1.5 billion 5.739% loan participation notes due 2017 and CHF 525 million 2.177% loan participation notes.

Russian Railways is a state-owned railway company based in Moscow.

UPL gives guidance

India’s UPL Ltd. set talk at Treasuries plus 200 bps for a benchmark-sized issue of dollar-denominated notes due in five years, a market source said.

Citigroup and JPMorgan are the joint global coordinators and – along with ANZ, Credit Suisse and Deutsche Bank – the joint bookrunners for the Rule 144A and Regulation S deal.

UPL, formerly known as United Phosphorus Ltd., is a Mumbai provider of crop protection products, seeds and chemicals.

Tenaga on roadshow

Malaysia’s Tenaga Nasional Bhd. is on a roadshow for a dollar-denominated issue of Islamic bonds, a market source said.

BNP Paribas, Citigroup Global Markets Ltd., CIMB and HSBC are the bookrunners for the Regulation S deal.

Proceeds will be used for general corporate purposes.

Tenaga is an electric utility based in Kuala Lumpur.

China Aoyuan plans roadshow

China Aoyuan Property Group Ltd. will set out on Friday for a roadshow to market a possible issue of notes, a market source said.

BofA Merrill Lynch, Deutsche Bank and UBS are arranging the marketing trip, which will be held in Hong Kong, Sydney and Singapore.

China Aoyuan is real estate developer based in Guangzhou, China.

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