Exim India sells; Russia, Turkey perform; Saudi Electricity sets roadshow; BRE gives guidance

By Christine Van Dusen

Atlanta, March 24 - Export Import Bank of India sold notes on Monday, and bonds from Central and emerging Europe opened slightly stronger, even as Ukraine's interim president pushed for the withdrawal of Russian troops from Crimea.

"The build-up of Russian forces on the Ukraine border is not helping matters," a London-based analyst said. "Nonetheless, Russia's 2030s are opening slightly better this morning, up a ½ point."

In other trading, Croatia bonds opened unchanged on Monday morning, despite a negative outlook from Moody's Investors Service.

"We have seen some sellers of the short end," she said.

Turkey remained solidly bid ahead of local elections, and notes from the Middle East and Africa were a bit tighter on Monday.

"We have seen buyers of South Africa corporates," a trader said.

From Saudi Arabia, Saudi Electricity Co. announced that it will set out on Tuesday for a roadshow to market an issue of notes with Deutsche Bank, HSBC and JPMorgan for a Rule 144A and Regulation S deal.

The roadshow will be held in the United States and Europe.

SECO previously announced that it would issue riyal- and dollar-denominated notes sometime in early 2014.

"Some more welcome supply from Saudi Arabia," a trader said. "They will borrow in sukuk format, obviously, and new bonds will complement their existing curve of four bonds, with the longer-dated 2023s and 2043s still nicely below par. What a poor quarter for supply in this space."

Also from the Middle East, Bahrain Telecommunications Co. announced a Dutch auction for its outstanding 2020 dollar notes, which gave its bonds a boost.

"They closed the best part of 30 bps tighter on the day," he said.

Perpetuals stay popular

Perpetual bonds from the region remained popular in trading, with United Arab Emirates-based Global Education Management Systems Ltd.'s 12% notes trading with a 116 handle on Monday, the trader said.

The notes priced at par.

Overall, volumes were steady but not massive on Monday, he said.

Dubai Electricity and Water Authority's 2015s "look like a good value for the front-dated fans and carry desks," he said. "It has cheapened up lately, and for a 13-month piece of paper near a 1 5/8% yield, this looks like a good defensive investment."

Middle East in focus

Abu Dhabi Commercial Bank's 2023s were active for retail investors, the trader said, while Dar al-Arkan Holdings put in a solid day, with bids on the 2016s and 2018s.

"They remain below par," he said.

Bonds from Kuwait were balanced, he said.

In other news on Monday, market sources were whispering about a possible bond issue from Korea, with the proceeds to finance a $1 billion redemption due in September.

Exim India prints notes

Exim Bank of India priced $500 million of 3 7/8% notes due Oct. 2, 2019 to yield 3.961%, Treasuries plus 220 basis points, a market source said.

The notes were talked at a spread of 220 bps to 225 bps.

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

The financial institution is based in Mumbai.

BRE Bank sets talk

Poland's BRE Bank SA set talk in the mid-swaps plus 145 bps area for its upcoming €500 million issue of notes due in five years, a market source said.

Commerzbank, Erste Group and UBS are the bookrunners for the deal.

BRE Bank is a Warsaw-based lender.

Marketing trip for Abengoa

Peru's Abengoa Transmision Sur SA (ATS) has set a roadshow to start on Tuesday for a $400 million issue of notes due in April of 2043, a market source said.

BNP Paribas and HSBC are the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used to refinance existing bank debt.

The roadshow begins Tuesday in Santiago and will travel to Lima, Los Angeles, San Francisco, Houston, New York and Boston before concluding on April 4 in London.

Abengoa Transmision, an engineering construction and service company based in Lima, is a subsidiary of Spanish conglomerate Abengoa Finance SAU.

KT plans deal

South Korea's KT Corp. is looking to issue dollar-denominated bonds, a market source said.

No other details were immediately available on Monday.

KT is a telecommunications company based in Seongnam, South Korea.

© 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.