Biosensors International, CAF sell bonds as EM takes a 'breather'; Lebanon trades well

By Christine Van Dusen

Atlanta, Jan. 14 - Singapore's Biosensors International Group Ltd. and Venezuela's Corporacion Andina de Fomento (CAF) priced notes on a quieter Monday for emerging markets assets, following the previous week's whirlwind of issuance and trading.

The Markit iTraxx SovX index spread was 1 basis point tighter to start the week. The corporate index was unchanged.

"So the market is pausing," a London-based trader said. "Spreads took a breather today."

Paper was available for Abu Dhabi National Energy Co.'s (TAQA) 2023s as well as Qatar-based Qtel International's 2023 bonds.

"TAQA closes 9 bps wider and Qtel 8 bps," he said. "Didn't see a tremendous amount of the higher-yielders and higher-betas come out, however they certainly may be pausing."

Demand was noted for Bahrain, Kuwait and Dubai, with the latter sovereign's 2021s seeing buyers.

"But people are not chasing things at the moment," he said.

Abu Dhabi Islamic Bank's perpetual notes seem to have stalled, moving below the 107 level with two-way flow.

"Lebanon continues to trade well," he said. "It was lagged its peer group for some time now."

In deal-related news, Marfrig Holdings (Europe) BV was prepping an issue of notes, as were State Export-Import Bank of Ukraine (Ukreximbank), Turkey's Yapi ve Kredi Bankasi AS, Russia's Credit Bank of Moscow, Malaysia's Sime Darby Berhad Bhd. and Czech Republic-focused New World Resources plc.

Still, no new issuance was in the works from the Middle East and North Africa.

"Still no sign of any supply," the London trader said. "However, with other parts of EM starting to get going, I'd imagine it's only a matter of time."

Biosensors, CAF price notes

In its new deal, Singapore-based Biosensors International priced a S$300 million issue of 4 7/8% notes due Jan. 23, 2017 at par to yield 4 7/8%, a market source said.

Credit Suisse (Singapore) Ltd. and Standard Chartered Bank were the bookrunners for the Regulation S deal.

Biosensors International develops, manufactures and markets medical devices for interventional cardiology and critical care procedures.

And Venezuela-based lender CAF priced a CHF 250 million issue of 1 3/8% notes due Feb. 11, 2021 at 100.094 to yield mid-swaps plus 55 bps via Credit Suisse.

Marfrig sets size

Also on Monday, Marfrig Holdings set the size as benchmark for its planned issue of dollar-denominated notes due in July of 2017.

Bank of America Merrill Lynch, Bradesco BBI, BB Securities and Itau BBA are the bookrunners for the Rule 144A and Regulation S deal.

The notes are expected to price mid-week.

The proceeds will be used to extend the company's debt maturity profile and for general corporate purposes.

The notes are guaranteed by Marfrig Alimentos SA, a food processing company based in Sao Paulo, Brazil.

Ukreximbank mandates leads

Ukraine's Ukreximbank has mandated Credit Suisse and Morgan Stanley as bookrunners for a dollar-denominated issue of benchmark-sized bonds, a market source said.

The Regulation S notes are expected to be rated B3 by Moody's Investors Service and B by Fitch Ratings.

Meanwhile, sovereign eurobonds from Ukraine were underperforming and selling was seen, said Svitlana Rusakova of Dragon Capital.

The 2020s were quoted at 103¼ bid, 104¼ offered while the 2021s were seen at 104½ bid, 105½ offered.

"Corporate names were unchanged, with some two-way interest but not much actual trading going on," she said.

Yapi Kredi gives guidance

From Turkey, lender Yapi Kredi gave initial price talk in the mid-swaps plus 290 bps area for a $500 million issue of notes due Jan. 21, 2020, a market source said.

Bank of America Merrill Lynch, Mitsubishi UFJ, Morgan Stanley and Unicredit are the bookrunners for the deal.

"Turkey sovereigns are seeing better buying by locals across the long end," a London-based analyst said. "Retail money started dipping their toe on long-dated Turkish bank paper."

Moscow bank picks bookrunners

Russia's Credit Bank of Moscow has mandated Bank of America Merrill Lynch, Barclays, Raiffeisen Bank International and RBS for a roadshow to market an issue of dollar-denominated notes, a market source said.

The roadshow is set to begin on Wednesday in Asia and travel to Europe and the United States.

A Rule 144A and Regulation S issue of notes is expected to follow.

Roadshow ahead for Sime Darby

Malaysia's Sime Darby - a Kuala Lumpur-based conglomerate in plantations, property, motors, industrial equipment, energy and health care - has mandated Citigroup, HSBC Amanah Malaysia, Maybank Investment Bank and Standard Chartered Bank as bookrunners for a dollar-denominated issue of Islamic bonds, a market source said.

A roadshow for the Regulation S sukuk offering will begin Tuesday and travel through Asia, Europe and the Middle East.

Sime Darby intends to use sukuk proceeds to finance capital expenditures, working capital requirements and general corporate purposes.

The deal is part of a $1.5 billion multicurrency sukuk program for subsidiary Sime Darby Global Bhd.

"The sukuk market is growing," the London trader said.

New World plans deal

Czech Republic-focused New World Resources is planning a €275 million issue of notes due in 2021, a market source said.

The proceeds will be used to repay the company's existing 2015 notes.

No other details were immediately available on Monday.

New World Resources is an Amsterdam-based central European coal producer with operations in the Czech Republic.

Hong Kong Broadband popular

The final book for Hong Kong Broadband Network Ltd.'s recent $450 million issue of 5¼% notes due Jan. 17, 2018 was $9 billion from more than 230 accounts, a market source said.

The notes, issued by Metropolitan Light International, priced at par to yield 5¼% via JPMorgan, Standard Chartered and UBS in a Regulation S deal.

About 76% of the orders came from Asia and 24% from Europe.

Fund managers accounted for 45%, private banks 45%, banks 8% and corporates and others 2%.

Demand for Agile Property

Also oversubscribed was the $700 million issue of 8¼% perpetual notes from China's Agile Property Holdings Ltd., a Hong Kong-based land development company.

The notes recently priced at par to yield 8¼% with bookrunners Hongkong and Shanghai Banking Corp. Ltd., UBS AG, Hong Kong Branch and Morgan Stanley & Co. International plc.

The final book for the Regulation S deal was $6.75 billion from 205 accounts, with 84% from Asia and 16% from Europe.

Private banks picked up 76%, fund managers 11%, banks 8% and corporates and others 5%.

Proceeds will be used for the purchase of new land sites, refinancing and general working capital purposes.

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