Primary sees deals from Krung Thai, Kuveyt Turk, CCB; Isbank active; issuers line up roadshows

By Christine Van Dusen

Atlanta, June 19 – Thailand’s Krung Thai Bank PCL, Turkey’s Kuveyt Turk Katilim Bankasi AS and China Construction Bank (Asia) Corp. Ltd. printed new issues on a positive Thursday, buoyed by the previous day’s news that U.S. interest rates are likely to stay low.

“Russia ‘30s are up a ½ point, for example, while Turkey also feels strong. Financials are 1 basis point to 2 bps tighter, in general,” a London-based analyst said.

In other trading, Turkiye Is Bankasi AS’ (Isbank) new $750 million 5% notes due June 25, 2021 that priced at 98.689 were active on Thursday morning, the analyst said.

The notes came to the market on Wednesday at mid-swaps plus 295 bps via Barclays, Citigroup, HSBC, National Bank of Abu Dhabi and RBS.

“But trading is still relatively flat, in spread terms,” she said.

In deal-related news, numerous issuers announced or nearly concluded roadshows for upcoming deals, including Russia’s OAO Sberbank, Bulgaria, Turkey’s Turkiye Cumhuriyeti Ziraat Bankasy AS (Ziraat Bank), Indonesia’s PT Pakuwon Jati Tbk, Poland’s Powszechny Zaklad Ubezpieczen SA (PZU) and Brazil’s OAS SA.

And aluminum-products manufacturer China Hongqiao Group Ltd. set talk at 7 5/8% for a benchmark-sized issue of dollar-denominated notes due in three years, a market source said.

Deutsche Bank, ANZ Banking Group, Credit Agricole, Morgan Stanley, Barclays and RBS are the joint bookrunners and joint lead arrangers with Deutsche Bank as global coordinator.

The company plans to use the proceeds of the Regulation S offering for refinancing existing debt and general corporate purposes.

“The primary market is in full swing,” the analyst said. “This surge of supply may raise concerns that the market is nearing its peak, however.”

Krung Thai sells notes

In its new deal, Thailand-based lender Krung Thai Bank sold $700 million 5.2% notes due Dec. 26, 2024 at par to yield 5.2%, a market source said.

The notes were talked at a yield in the 5¼% area.

Goldman Sachs and HSBC were the bookrunners for the Regulation S deal.

Kuveyt Turk does deal

Turkey-based Islamic financial institution Kuveyt Turk printed a $500 million issue of 5.162% five-year Islamic bonds at par to yield 5.162%, or mid-swaps plus 340 bps, a market source said.

The notes were talked at a spread in the mid-swaps plus 375 bps area.

Standard Chartered Bank, Citigroup, Emirates NBD Capital, HSBC and KFH Investment were the bookrunners for the Regulation S deal.

Issuance from Chinese lender

China Construction Bank printed RMB 1.25 billion 3.45% notes due June 26, 2017 at par to yield 3.45%, a market source said.

The notes were talked a yield in the 3½% area.

Bank of China (Hong Kong), Barclays, China Construction Bank International, HSBC and UBS are the bookrunners for the Regulation S deal.

Sberbank on roadshow

Russia-based Sberbank will conclude a roadshow on Friday for a euro-denominated issue of notes, a market source said.

Barclays, BNP Paribas, Deutsche Bank and Sberbank CIB are the bookrunners for the Regulation S deal.

And Bulgaria will set out on June 23 for a roadshow to market a euro-denominated issue of notes, a market source said.

Ziraat sets marketing trip

Turkey’s Ziraat Bank will embark on a roadshow starting Friday for a dollar-denominated issue of benchmark-sized notes, a market source said.

BofA Merrill Lynch, Citigroup, Deutsche Bank, HSBC and JPMorgan are the bookrunners for the Rule 144A and Regulation S offering.

“We expect it will prove popular,” a trader said.

Pakuwon, PZU pick banks

Indonesia-based real estate developer and manager Pakuwon Jati has mandated Standard Chartered Bank and UBS as bookrunners for a dollar-denominated issue of notes, a market source said.

A roadshow will begin Friday.

And Polish insurance company PZU has mandated BofA Merrill Lynch, Citigroup, Deutsche Bank, Goldman Sachs and UBS as bookrunners for a euro-denominated issue of notes that will be marketed during a roadshow that begins Monday, a market source said.

Roadshow for OAS

And Brazil-based construction company OAS will set out on Monday for a roadshow to market a dollar-denominated issue of notes, a market source said.

The roadshow will begin in London and Los Angeles and conclude on June 24 in New York and Boston.

A Rule 144A and Regulation S deal is expected to follow.

Cheung Kong prices bonds

On Wednesday, China’s Cheung Kong (Holdings) Ltd. sold $300 million floating-rate notes due June 20, 2017 at par to yield Libor plus 70 bps, a market source said.

The notes were talked at a spread in the 75 bps area.

Deutsche Bank was the sole bookrunner for the Regulation S deal.

The proceeds will be used for general corporate purposes.

Cheung Kong is a Hong Kong-based development conglomerate.

© 2015 Prospect News.
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