Primary hosts Vietnam, HNA Group, Global Liman; Wanhua, Eurasian Bank could issue notes

By Christine Van Dusen

Atlanta, Nov. 6 – Vietnam, China’s HNA Group International Co. and Turkey’s Global Liman Isletmeleri AS priced notes on Thursday as some selling was seen for long-dated Middle Eastern bonds after a move lower in U.S. Treasury rates.

“Once again, some decent clips going through on certain bonds,” a London-based trader said. “Euro bonds, what limited ones there are, retain a decent bid. Fairly active day.”

Perpetual bonds remained popular, he said, with Emirates Islamic Bank PJSC’s issue moving to new highs.

“Buyers of the other perpetuals, although Burgan Bank came off late from the highs,” he said.

Also on Thursday, the new issue of notes from Dubai-based DIFC Investments LLC – $700 million 4 3/8% notes due 2024 that priced at par – traded at 99¾ a few times, he said.

The notes came to the market at mid-swaps plus 185 basis points via Dubai Islamic Bank, Emirates NBD Capital, Noor Bank and Standard Chartered in a Regulation S sukuk.

“Struggling just a little to get going back above re-offer,” he said.

He also noted good two-way interest in Qatar’s 2019s late in the day.

“Also saw some paper emerge on Qtel International,” he said.

Looking to Turkey, the 6 5/8% notes due in 2045 were seen on Thursday morning at 119.12 bid, 119.62 offered after trading on Wednesday morning at 119 bid, 119.85 offered. The notes priced at 99.026, a trader said.

And from Ukraine, trading has been mostly quiet so far this week, with sovereign bonds barely moving on light flows, said Svitlana Rusakova of Dragon Capital.

Russia in focus

From Russia, the sovereign’s 3½% notes due 2019 that priced at 99.195 traded Thursday morning at 97 bid, 97½ offered after Wednesday’s levels of 97.12 bid, 97.62 offered, a trader said.

The 4 7/8% notes due in 2023 that priced at 98.162 were quoted on Thursday at 97.85 bid, 98.35 offered after Wednesday’s 98.20 bid, 98.30 offered.

Russia’s 5 7/8% notes due in 2043 that priced at 97.187 were seen Thursday morning at 100½ bid, 101½ offered after trading at 101¼ bid, 102¼ offered on Wednesday morning.

And the sovereign’s 3 5/8% euro-denominated notes due 2020 that priced at 99.533 moved to 100¾ bid, 101¾ offered on Thursday after trading Wednesday at 101 bid, 102 offered, he said.

Issuance from Vietnam

In its new deal, Vietnam priced $1 billion 4.8% notes due Nov, 19, 2024 at par to yield 4.8%, a market source said.

The notes were talked at a yield in the 4.85% area.

Deutsche Bank, HSBC and Standard Chartered Bank were the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used for general government funding purposes.

HNA Group prices bonds

China’s HNA Group priced RMB 1.25 billion 8% notes due Nov. 13, 2017 at par to yield 8%, a market source said.

DBS, ICBC, RBS, Guotai Junan, Guoyuan Securities, HK International Securities and Shanghai Pudong Development Bank were the bookrunners for the Regulation S deal.

Haikou City-based HNA Group focuses on air transportation, real estate, retailing, financial services, tourism and logistics. Hainan Airlines is part of HNA.

Global Liman sells notes

Turkey’s Global Liman priced a $250 million issue of 8 1/8% notes due Nov. 14, 2023 at 99.345 to yield 8¼%, a market source said.

The notes were talked at a yield in the low-8% area.

Citigroup and JPMorgan were the bookrunners for the deal.

The issuer is a cruise and commercial ports company based in Karakoy, Turkey.

Indiabulls gives guidance

India’s Indiabulls Financial Services Ltd. set talk in the 10¼% area for a dollar-denominated issue of benchmark-sized notes due in five years, a market source said.

Deutsche Bank is the bookrunner for the Regulation S deal.

The proceeds will be used to refinance debt and for general corporate purposes.

The notes will be issued by wholly owned subsidiary Century Ltd.

Indiabulls Financial Services is a retail financial services company based in New Delhi.

Roadshow for Wanhua

China’s Wanhua Chemical Group Co. Ltd. will set out on Nov. 10 for a roadshow to market a possible issue of notes, a market source said.

JPMorgan and HSBC are arranging the marketing trip, which will be held in Singapore and Hong Kong.

Wanhua is a Yantai-based chemical company.

Eurasian Bank seeks issuance

Kazakhstan’s Eurasian Bank is looking to issue $500 million of notes, a market source said.

The transaction will be Regulation S-registered.

No other details were immediately available on Thursday.

The bank is based in Almaty, Kazakhstan.

JSW attracts orders

Poland-based Jastrzebska Spolka Weglowa SA’s (JSW) new issue of $500 million 4¾% notes due Nov. 12, 2019 drew a final book of $1.8 billion, a market source said.

The notes came to the market at par to yield 4¾% via Credit Suisse and JPMorgan in a Regulation S transaction.

About 68% of the orders came from Asia, 31% from the European Union and 1% from the offshore United States.

Funds accounted for 70%, private banks 15%, banks 10% and insurers and others 5%.

The proceeds will be used to fund term loans and for other corporate purposes.

The issuer is a coking coal company based in Jastrzebie-Zdroj, Poland.

BOC deal oversubscribed

The final book for Bank of China Ltd.’s $3 billion 5% notes due 2024 was $18 billion from 580 accounts, a market source said.

The notes came to the market on Wednesday at 99.588 to yield Treasuries plus 270 bps.

Bank of China, BofA Merrill Lynch, HSBC and Wells Fargo Securities were the joint global coordinators, joint lead managers and joint bookrunners for the Rule 144A and Regulation S deal.

Credit Agricole CIB, Deutsche Bank, JPMorgan, Mizuho Securities and Morgan Stanley were the joint lead managers and joint bookrunners.

About 60% of the orders came from Asia, 27% from the United States and 13% from Europe.

Insurers picked up 49%, fund managers, 38%, public sector 8%, banks 3% and private banks 2%.

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