Primary hosts Beijing Infrastructure Investment deal; spreads widen; funds see inflows

By Christine Van Dusen

Atlanta, June 20 – China’s Beijing Infrastructure Investment (Hong Kong) Ltd. sold notes and, after weeks of strength, emerging markets assets weakened as investors kept an eye on the conflict in Iraq.

“The situation in Eastern Ukraine also remains tense, with continued fighting,” a London-based analyst said. “Overall, however, the moves wider were not substantial this week.”

She also noted that emerging markets bond funds saw inflows during the week, totaling about $620 million.

In trading on Friday, the new notes from Kenya traded well, as did the new issue of 5.162% notes due in five years from Turkey’s Kuveyt Turk Katilim Bankasi AS.

The latter deal tightened about 18 basis points by Friday, a trader said.

“But Turkish banks were 9 bps wider on average,” the trader said. “The clear underperformer was [Turkey’s Turkiye Finans Katilim Bankasi AS] as investors made way for the new Kuveyt Turk.”

Meanwhile, the new 5% bond due in 2021 that Turkiye Is Bankasi AS (Isbank) priced Wednesday at 98.689 to yield mid-swaps plus 295 bps traded relatively flat, in spread terms on Thursday.

In deal-related news, China City Construction (International) Co. Ltd. and China’s Greenland Holding Group Co. Ltd. set roadshows.

In other trading, banking bonds from Russia put in a strong week, particularly short-dated notes, a trader said.

Looking to the Middle East, most names were a bit wider by the end of the week, a trader said.

© 2015 Prospect News.
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