Jordan 30-year deal moves up in secondary; planned Abu Ahabi tranches add in gray market

By Rebecca Melvin

New York, Oct. 3 – The Middle East region remained in focus in emerging markets on Tuesday. Jordan’s newly priced 7 3/8% notes due 2047 traded up smartly upon release for secondary market action after the sovereign priced $1 billion of the 30-year senior unsecured bonds.

The Jordan 2047 notes traded up to 101 with plenty of support, a London-based trader said.

But the existing Jordan 2026 notes and 2027 notes came off.

Meanwhile the three planned tranches of Abu Dhabi traded up in the gray market ahead of pricing of that $10 billion of paper that is likely to be the centerpiece of trade on Wednesday.

Bahrain bonds were pulled higher into the close, with those spreads tightening by 10 basis points at the long end of the curve, while middle term notes due 2026, 2028 and 2029 were in by 4 to 6 bps.

Overall it was a “very busy session again,” the trader said.

Elsewhere, Brazil launched and priced $1.5 billion of 4 5/8% 10-year bonds at 99.603 to yield 4.675%, or Treasuries plus 235 bps, on Tuesday, according to a market source.

That pricing came tight compared to talk for a yield spread of U.S. Treasuries plus 250 bps.

Brazil concurrently tendered for near-dated notes, and proceeds of the new notes are earmarked to refinance or repurchase debt and for general government purposes.

Among Brazilian corporates, Aegea Saneamento priced its first bond for $400 million of 5¾% seven-year notes. The Rule 144A and Regulation S notes were sold via joint bookrunners BofA Merrill Lynch, BTG Pactual and Itau BBA.

Sao Paulo-based Aegea Saneamento is an operator of public sanitation concessions in Brazil.

In the Asia region, Singapore’s Puma International Financing SA priced an upsized $600 million of seven-year notes guaranteed by Puma Energy Holdings Pte. Ltd. with a coupon of 5 1/8%, according to a market source.

The Rule 144A and Regulation S notes were initially talked at a minimum of $300 million, and then the deal size was lifted to $500 million before reaching its final size.

Singapore-based Puma Energy is an oil and gas products and services company.

And in local currency, Frasers Centrepoint Ltd. issued S$42 million of additional fixed-rate subordinated perpetual securities on Tuesday.

The securities will be consolidated to form a single series with the S$308 million of fixed-rate subordinated perpetual securities issued at par on Sept. 21.

Oversea-Chinese Banking Corp. Ltd. is the bookrunner for both tranches of series 002 securities, which were issued under the company’s S$5 billion multicurrency debt issuance program.

As previously reported, the distribution rate is 3.95% initially. A step-up date is scheduled for Oct. 5, 2027, and the step-up margin is 100 bps.

In India, finance company Satin Creditcare Network Ltd. notified the Bombay Stock Exchange that the working committee of its board of directors approved the allotment of Rs. 650 million of 12.06% secured non-convertible debentures.

© 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.