Turkey, Wiseyear price notes amid slow day for primary market, active secondary trading

By Christine Van Dusen

Atlanta, Feb. 8 - The Republic of Turkey and Hong Kong's Wiseyear Holdings Ltd. priced notes on a slower Wednesday for emerging markets bond issuance but still an active session for risk assets in the secondary market.

"There are a few other dribs and drabs of deals out there, but nothing as busy as the last two weeks or even yesterday," a New York-based market source said.

What's slowing the pipeline down, he said, is the fact that this Friday any borrowers who haven't filed their fourth-quarter earnings will see their financials "go stale," he said.

"Historically, February is always a fairly light month," he said. "Borrowers have to get updated comfort letters. This year it falls on Feb. 10. So what we've seen is all of the issuance, from corporates in particular, is borrowers trying to get ahead of that deadline to have to refresh their financials."

On the trading front, however, Wednesday was "exceedingly busy," a trader said.

"Active day, balanced flow and some very decent moves on the week and month," he said.

From the Middle East, Abu Dhabi National Energy Co.'s 4 1/8% 2017s were unchanged at 101.37 bid, 101.62 offered. Meanwhile, the recent $400 million five-year sukuk notes from MAF Sukuk Ltd. - a unit of Dubai-based developer Majid Al-Futtaim Holding - that priced at par were seen trading at 100.75 bid, 101 offered on Wednesday.

And bonds from Dubai were well supported, the trader said.

"While not trading in huge volumes they retain great sponsorship as credit default swaps dip below the key 400 level," he said.

Bonds from Qatar "took a backseat" to action in Abu Dhabi, he said.

"It did feel a little heavy in Qtel International's 2025s, so perhaps having reached the key 10 level some chips have been taken off the table," he said.

Dolphin bonds trade up

The recent issue of 5½% notes due 2021 from Abu Dhabi-based gas company Dolphin Energy Ltd. LLC was trading early Wednesday at 101.62 bid, 101.87 offered.

The notes priced at par to yield 5½% via RBS, BNP Paribas, Abu Dhabi Commercial Bank, Mitsubishi UFJ and Societe Generale in a Rule 144A and Regulation S deal.

Later in the session, the notes were quoted at 101.75 bid, 101.90 offered while the company's 5.888% 2019 notes were seen at 107.40 bid, 107.70 offered.

Toward the European close, the 2019s were trading at 107.50 bid, 107.75 offered while the 2021s were seen at 101.80 bid, 101.95 offered.

"That flew out of the gates," a trader said, noting "an impressive return to the markets and some decent two-way interest throughout the day."

Turkey, Wiseyear do deals

In its new deal, Turkey priced a $1 billion tap of its existing 6¼% notes due Sept. 26, 2022 at 103.936 to yield 5¾%, a market source said.

The notes priced at the tight end of talk, set at 5¾% to 5.8%.

Barclays Capital, Citigroup and Credit Suisse were the bookrunners for the Securities and Exchange Commission-registered deal.

The original issue totaled $1.5 billion.

And Wiseyear Holdings Ltd. - a unit of Hong Kong-based property developer Kerry Properties Ltd. - priced $500 million 5% notes due Feb. 15, 2017 (/BBB-/) at 99.142 to yield 5.197%, or Treasuries plus 437.5 bps, a market source said.

The notes priced at the low end of talk, which was set at Treasuries plus 437.5 bps to 450 bps.

HSBC, Mizuho and Morgan Stanley were the bookrunners for the Regulation S deal.

Cikarang plans notes

In other deal-related news, Indonesia-based power company PT Cikarang Listrindo is planning an issue of bonds due 2017, a market source said.

The notes are part of a tender offer for $300 million 9¼% notes due 2015.

Credit Suisse and Barclays Capital are the bookrunners for the Rule 144A and Regulation S notes, which are non-callable for four years.

Proceeds will be used for general corporate purposes and to refinance debt and fund part of a new power plant.

Shui On sets talk

Also on Wednesday, China's Shui On Development (Holding) Ltd. set price talk at the 9¾% area for its planned dollar-denominated issue of notes, a market source said.

BNP Paribas, Deutsche Bank, Standard Chartered Bank and UBS are the bookrunners for the Regulation S notes, which include a change-of-control put at 101%.

The proceeds will be used to fund capital expenditures related to the group's real estate operations and to acquire, develop or construct assets, or to repay debt.

The notes are guaranteed by Shui On Land Ltd., a Shanghai-based property developer.

Raspadskaya deal ahead

Russian coal-mining company OAO Raspadskaya is planning a $300 million bond offering, a market source said.

Goldman Sachs, Morgan Stanley and VTB Capital are the bookrunners for the deal.

And the Czech Republic has mandated Barclays Capital, Erste Group, Societe Generale and Unicredit for a roadshow starting Feb. 13, a market source said.

A bond offering may follow, pending market conditions.

© 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.