Dominican Republic, Metalloinvest sell bonds; EM spreads tighten; Sekerbank cancels deal

By Christine Van Dusen

Atlanta, April 11 - The Dominican Republic, Russia's Metalloinvest JSC, China's Texhong Textile Group Ltd. and Abu Dhabi's First Gulf Bank PJSC priced notes on Thursday as spreads tightened, investors bought Turkish banking paper and several issuers advanced deals.

Among the issuers readying notes for the market were Ukraine's Mriya Agro Holding Public Ltd., Turkey's Koc Holding AS, Kazakhstan's Eastcomtrans LLP, State Bank of India, Lebanon, Russia's Eurasia Drilling Co. Ltd. and Czech Republic's EP Energy.

The day also saw Turkey's Sekerbank TAS shelve a planned deal after missing its price target.

The Markit iTraxx SovX CEEME ex-EU index spread on Thursday moved to 189 basis points over Treasuries, narrower by 4 bps. The corporate index narrowed 7 bps to Treasuries plus 218 bps.

"In Turkey, Vakifbank's 2018s are seeing ongoing buying," a London-based analyst said, noting that the bonds were trading at 100 1/8. "Turkey's 2043s have rallied a point from close this morning on the back of rating upgrade speculation."

From the Middle East, Dubai saw some buyers after recent weakness, she said.

"Dubai Islamic Bank's perpetuals are bouncing a little, and the new Sharjah Islamic Bank 2018s are currently clearing at 993/4," she said.

Dubai Islamic Bank recently priced its 6¼% perpetual notes at par with Dubai Islamic Bank, Emirates NBD Capital, HSBC, National Bank of Abu Dhabi and Standard Chartered Bank in a Regulation S sukuk.

Sharjah Islamic Bank's 2.95% notes due 2018 also came to the market at par. Al Hilal Bank, HSBC, Kuwait's Liquidity Management House and Standard Chartered Bank were the bookrunners the Regulation S deal.

Ukraine bonds move lower

From Ukraine, prices for sovereign bonds have been drifting lower this week, said Svitlana Rusakova of Dragon Capital.

The came as the country's government failed to agree to a financial rescue plan from the International Monetary Fund.

"When the IMF news came out, most of the damage to the sovereign had already been done," she said.

Some sellers were seen for quasi-sovereign banks, she said, but other names have been mostly quiet.

Metalloinvest prices notes

In its new deal, Russia-based mining and metallurgy company Metalloinvest sold $1 billion 5 5/8% loan participation notes due April 17, 2020 at par to yield 5 5/58%, or mid-swaps plus 430 bps.

Credit Suisse, Deutsche Bank, VTB Capital, Credit Agricole, Sberbank and Societe Generale were the bookrunners for the Rule 144A and Regulation S deal.

After pricing, the 2020s were trading Thursday at 100 7/8.

"We like this name and see further potential in the credit," the London analyst said.

Meanwhile, Russia's 2042s moved to 119 from the previous day's 1181/2, she said.

First Gulf Bank does deal

Thursday's primary market also hosted a new deal from Abu Dhabi's First Gulf Bank. The lender sold CHF 100 million notes due April 23, 2015 at par to yield Libor plus 60 bps, a market source said.

Deutsche Bank was the bookrunner for the transaction.

Dominican Republic sells bonds

The Dominican Republic printed $1 billion 5 7/8% notes due April 18, 2024 at par to yield 5 7/8%, a market source said.

The notes were talked at a yield in the 6¼% area.

Citigroup and Deutsche Bank were the bookrunners for the Rule 144A and Regulation S deal.

New issue from Texhong

China-based fabric supplier Texhong Textile Group printed a $200 million issue of 6½% notes due Jan. 18, 2019 at 99.423, a market source said.

Deutsche Bank, JPMorgan and Standard Chartered Bank were the bookrunners for the Regulation S deal.

The company plans to use half of the proceeds for capital expenditures and the remainder for working capital and general corporate purposes.

Mriya Agro, Koc give guidance

Ukraine-based agriculture business Mriya Agro gave initial guidance in the high-9% area for a $350 million issue of five-year notes, a market source said.

Goldman Sachs and Sberbank are the bookrunners for the Rule 144A and Regulation S transaction.

And Turkey-based industrial conglomerate Koc Holding will set out on a roadshow on Friday for an issue of up to $1 billion of notes, a market source said.

BofA Merrill Lynch, BNP Paribas, Citigroup and Deutsche Bank are the bookrunners for the deal.

Talk from State Bank of India

State Bank of India set price talk at Treasuries plus 275 bps for its upcoming five-year issue of benchmark-sized dollar-denominated notes, a market source said.

BNP Paribas, Citigroup, Deutsche Bank, HSBC, JPMorgan and SBI Capital Markets are the bookrunners for the Rule 144A and Regulation S deal.

State Bank of India is based in Mumbai.

Eastcomtrans sets initial talk

Kazakhstan-based railway network operator Eastcomtrans gave initial guidance in the low-8% area for its upcoming five-year issue of dollar-denominated notes, a market source said.

HSBC and BNP Paribas are the bookrunners for the Regulation S deal.

And Czech Republic-based energy producer EP Energy gave initial guidance in the 4 5/8% area for its upcoming two-tranche issue of €600 million notes.

The proceeds from the Rule 144A and Regulation S deal will be used to repay existing debt.

Lebanon deal on deck

Lebanon set price talk at 6.15% for a $600 million tap of its 6% notes due on Jan. 27, 2023 and 6.7% for a $500 million tap of its 6¾% notes due Nov. 29, 2027, a market source said.

Fransa Invest Bank SAL, Natixis, Standard Chartered Bank are the bookrunners for the Regulation S deal.

Eurasia Drilling talks notes

Russia's Eurasia Drilling set initial price talk at the low- to mid-5% area for its upcoming issue of dollar notes due in seven years, a market source said.

BofA Merrill Lynch, Goldman Sachs and Sberbank are the bookrunners for the Rule 144A and Regulation S deal.

The issuer is a Moscow-based onshore and offshore drilling service provider.

Sekerbank shelves deal

In other news, Turkey's Sekerbank has canceled plans for a dollar-denominated issue of five-year notes, a market source said.

The Istanbul-based lender had set talk in the 5¼% area but could not hit its price target.

Citigroup, Standard Chartered and Unicredit were the bookrunners for the Rule 144A and Regulation S deal.

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