Mexico sells eurobond; Turkey, Shinhan Bank do deals; Ras al-Khaimah, Petronas active

By Aleesia Forni

Virginia Beach, April 8 – Mexico, Turkey and South Korea’s Shinhan Bank issued bonds on Wednesday, while bonds from Ras al-Khaimah and Malaysia’s Petroliam Nasional Bhd. (Petronas) were active in the secondary market.

“Plenty of new issue’s this week so that will be distracting people for the most part,” a market source said, adding that he expects volumes to remain low.

Shinhan Bank attracted around $4 billion of orders for its new $600 million five-year dollar deal.

Mexico sold a euro-denominated offering of 100-year global bonds during the session tight of price guidance.

In the day’s other sovereign new issue, Turkey priced its $1.5 billion offering around 15 bps tight of price talk.

“Had a little bout of profit taking as the U.S. Treasuries dipped towards 1.915%,” a trader said. “However, the market still retains a solid bid [and] tone.”

The trader noted popularity in Ras al-Khaimah’s 2025s, which traded tighter before fading slightly to near 100.01, still around 9 basis points better on the week.

Bonds from Dar al-Arkan Holdings, Damac Real Estate Development Ltd. and Kuwait Energy were also active in trading from that region.

In the Asians space, Petronas’ bonds traded around 5 bps to 10 bps to tighter on the day.

Mexico eurobond

Mexico sold €1.5 billion of 4% 100-year global notes (A3/BBB+/BBB+) at 95.322 to yield 4.2% on Wednesday, according to an informed source.

Guidance was set in the 4½% area.

Goldman Sachs & Co. and HSBC were the bookrunners.

The proceeds will be used for general governmental purposes.

Turkey new issue

Turkey priced $1.5 billion of 4¼% notes (expected: Baa3//BBB-) due April 14, 2026 at Treasuries plus 250 bps on Wednesday, according to an informed source and an FWP filed with the Securities and Exchange Commission.

The notes sold at 98.669 to yield 4.404%.

Price talk was set in the 265 bps area over Treasuries.

Deutsche Bank, Goldman Sachs and HSBC are the bookrunners.

Proceeds will be used for general financing purposes, which may include the repayment of debt.

Shinhan Bank five-years

South Korea’s Shinhan Bank was in Wednesday’s market with a $600 million issue of 2¼% five-year notes (A1/A/) priced at Treasuries plus 92.5 bps, according to an informed source.

The notes were guided in the 95 bps area over Treasuries, which was pulled in from initial price thoughts in the 110 bps area over Treasuries.

“[We] expect deal to perform given the limited primary supply,” a market source said.

Pricing came at 99.887 to yield 2.274%.

BofA Merrill Lynch, BNP Paribas Securities Corp., JPMorgan, Credit Agricole CIB, Deutsche Bank and HSBC were the bookrunners for the Rule 144A and Regulation S deal.

The Seoul-based lender previously held roadshows on March 16 and March 26.

Hikma active

A trader noted investor interest in the recent issue from Jordan’s Hikma Pharmaceuticals plc.

The $500 million 4¼% notes due in 2020, which priced at 99.471 to yield mid-swaps plus 287.5 bps, traded “near the 101.40 to 101.70 level” on Wednesday.

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