Gulf International, Turkey price deals; Morocco, EuroChem on deck; Vakifbank trades better

By Aleesia Forni

Columbus, Ohio, Dec. 4 - Tuesday's primary market saw Bahrain's Gulf International Bank BSC and the Republic of Turkey hit the market with $500 million and $1 billion issues respectively, market sources said.

There was also a $250 million issue of 3.259% notes due 2019 from Singapore's Keppel Land Ltd.

Meanwhile, Morocco is set to sell a dollar-denominated issue of notes as soon as Wednesday.

Russia's EuroChem Global Investments Ltd. is also prepping a dollar-denominated offering due 2017, a source told Prospect News.

In the secondary market, the recent issuance from Turkey's Turkiye Vakiflar Bankasi TAO (Vakifbank) was trading better during Tuesday's session.

Turkey add-on

Turkey priced a $1 billion tap of its existing notes due Jan. 14, 2041 at 158 basis points over Treasuries during Tuesday's primary market activities, according to a market source.

Full terms were not available at press time.

Turkey sold $1 billion of the 6% notes in January 2011 and a $1 billion add-on to the notes in June 2012.

Proceeds will be used for general financing purposes, which may include the repayment of debt.

Gulf International sale

Bahrain's Gulf International Bank BSC also hit the market on Tuesday with a $500 million issue of 2 3/8% notes due 2017, a market source said.

The notes priced at 99.864 to yield 2.404%.

Barclays, Gulf International Bank Capital, JPMorgan, National Bank of Abu Dhabi, Societe Generale and Standard Chartered Bank managed the Regulation S deal.

Gulf International Bank is a lender based in Bahrain.

Keppel Land offering

Also in the primary market, Keppel Land sold a $250 million issue of 3.259% notes due 2019 at par on Tuesday, according to a company release.

Australia and New Zealand Banking Group Ltd., Credit Suisse (Singapore) Ltd., DBS Bank Ltd. and Standard Chartered Bank acted as joint lead managers and bookrunners.

Proceeds will be used to refinance existing debt, to finance potential acquisition opportunities and for general corporate and working capital purposes.

Keppel Land is the property development arm of the Singapore-based Keppel Group conglomerate.

Morocco eyes notes

Morocco is planning a dollar-denominated offering of notes due 2022 as soon as Wednesday, a trader said Tuesday.

"I suspect scarcity will play a big part here," the trader said. "North African sovereigns don't issue frequently, nor in the Regulation S, Rule 144A format."

Citigroup, BNP Paribas, Barclays and Natixis are bookrunners for the "fairly infrequent" issuer's deal.

EuroChem plans sale

EuroChem is also prepping an offering of dollar-denominated notes, according to a syndicate source.

The notes will be due 2017, and BNP Paribas, Barclays, Citigroup and Sberbank are managing the Rule 144A and Regulation S deal.

Fitch Ratings has assigned a BB rating to the notes.

The fertilizer company is based in Moscow.

Vakifbank tightens

The recent issuance from Vakifbank was quoted at 103 1/8 bid, 103 5/8 offered on Tuesday, a trader said near the end of London's session.

The bank priced a $400 million increase of its existing 6% notes due Nov. 1, 2022 at 103.766 to yield Treasuries plus 386.8 bps, a market source said.

The original $500 million issue priced in October at par to yield 6%, or Treasuries plus 422.2 bps.

Vakifbank is a lender based in Istanbul.

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