Qatar’s $12 billion notes up in gray market; Turkey’s Koc Holding prices $750 million deal

By Rebecca Melvin

New York, March 6 – Despite an overall quiet tone in emerging markets debt there were deals and trading that captured attention on Wednesday. Qatar came to market with its long awaited issuance, which took the form of a triple tranche issue for $12 billion.

The sovereign launched five-, 10- and 30-year tranches that were ticking higher in the gray market ahead of final terms being set, a London-based market source said.

Qatar’s $2 billion tranche of five-year notes launched at a yield spread of U.S. Treasuries plus 90 basis points. The larger, $4 billion tranche of 10-year notes launched at a spread of Treasuries plus 135 bps. And the largest, $6 billion tranche of 30-year notes launched at a spread of Treasuries plus 175 bps.

In addition, Koc Holding AS priced a large tranche of $750 million of six-year notes with a 6½% coupon. The notes priced at reoffer of 99.389, which would have boosted yield closer to initial talk for 6 7/8% to 7% yield. The Istanbul-based industrial conglomerate jumped into a market that had been very positive on Turkish debt.

Two weeks ago the Turkey sovereign priced $$ billion in a triple tranche of five-, 10- and 30-year notes, and Turk Telekom priced $500 million of 6 7/8% six-year notes to yield 7%.

Elsewhere, Export-Import Bank of India priced $500 million 3 7/8% five-year notes (ratings: Baa2//BBB-) at 99.658 to yield 3.951%, or a yield spread of U.S. Treasuries plus 140 bps, according to a syndicate source on Wednesday.

HSBC and Standard Chartered Bank were the bookrunners for the Regulation S deal.

Beijing’s Export-Import Bank of China (Chexim) priced a €1 billion issue of 0.3% two-year notes on Wednesday, according to a market source.

Bank of China, Bank of Communications, Barclays, Credit Agricole CIB, MUFG Securities Asia Ltd., China Construction Bank (Europe) SA, Commerzbank and ING NV were lead managers and bookrunners of the Regulation S notes.

And Scenery Journey Ltd., a subsidiary of China Evergrande Group, priced $600 million of 9% notes due 2021 (B2), which are guaranteed by Tianji Holding Ltd., according to market sources on Wednesday.

Proceeds will be used for offshore debt refinancing by Hengda Real Estate.

Haitong International Securities Co. Ltd. was the bookrunner for the Regulation S deal.

The China-based entity is a real estate developer.

The secondary market was mostly flat with a quiet tone. Investors continued to watch the potential for a U.S.-China trade deal. Meanwhile cross-currents remain regarding slowing global growth or whether there is a resurgence of growth that sets the U.S. Federal Reserve back on the course of rate increases. Emerging markets are expected to grow this year at their slowest pace since the financial crisis. And worries regarding China debt and that nation’s ability to deploy more economic stimulus continue to cloud the economic forecast.

© 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.