Russian bonds move up; demand for Africa; roadshows for Los Portales, Zambia, Agromercantil

By Christine Van Dusen

Atlanta, March 25 - Emerging markets bonds put in a fairly active session on Tuesday, with paper from Russia opening higher and with a better tone.

The sovereign's 2030s, for example, opened up 5/8 of a point, a London-based analyst said.

"Banks and corporates are lagging slightly so far, possibly affected by Fitch's negative outlooks yesterday," she said. "We have even seen some sellers out of Asia this morning."

Bonds from Turkey were weaker, with the long end about 15 basis points wider on Tuesday, ahead of the local election.

"Turkish banks are firmer, however, with scrappy buyers," she said.

Market sources were also keeping an eye on Saudi Electricity Co., which set out on Tuesday to market its dollar-denominated issue of Islamic bonds.

"The region remains solid this morning," the analyst said. "We also note the continued strong demand for African sovereign paper and South African corporates."

Bonds from Abu Dhabi National Energy Co. (TAQA) were unchanged-to-higher, a trader said, and notes from Aldar Properties PJSC and Dolphin Energy remained popular.

"Perpetuals were solid again," he said. "Dubai Islamic Bank was up through par today on a very well-executed short squeeze."

Abu Dhabi Islamic Bank's perpetuals were up at 1041/4, while Emirates Islamic Bank's advanced to 95 1/8, he said.

"Bahrain saw better buyers, likewise Kuwait," he said. "Abu Dhabi Commercial Bank's 2023s are still seeing demand."

And Bahrain Telecommunications Co.'s bonds held on to some gains, he said.

In deal-related news on Tuesday, China Construction Bank Corp. set talk, Peru's Los Portales SA was on a roadshow, Banco Agromercantil de Guatemala SA and Zambia planned marketing trips and South Korea's Woori Bank mandated bookrunners.

China Construction gives guidance

China Construction Bank Corp. set talk in the Treasuries plus 160-bps area for its upcoming issue of dollar-denominated and benchmark-sized notes due in three years (expected rating: A2), a market source said.

Bank of China Hong Kong, China Construction Bank International, HSBC, ICBC Asia, Standard Chartered Bank and UBS are the bookrunners for the Regulation S deal.

The notes could price as soon as Tuesday.

The issuer is based in Beijing.

Los Portales on roadshow

Peru's Los Portales SA set out on Monday for a roadshow to market a possible issue of notes, a market source said.

The roadshow began in Lima and will travel to Santiago, London, Zurich, Geneva, Los Angeles and Boston before concluding in New York.

BBVA, BofA Merrill Lynch and Santander are the bookrunners for the Rule 144A and Regulation S deal.

The issuer is a San Isidro-based real estate company.

Zambia plans marketing trip

Zambia has mandated two banks to arrange a roadshow for a dollar-denominated issue of benchmark-sized notes, a market source said.

Barclays and Deutsche Bank will lead the Rule 144A and Regulation S marketing trip, which begins Thursday in Los Angeles. The roadshow will move to San Francisco, Boston and New York before wrapping up on April 4 in London.

Roadshow for Agromercantil

Banco Agromercantil de Guatemala SA will set out on Thursday for a roadshow to market a possible issue of notes, a market source said.

BofA Merrill Lynch and Citigroup are the bookrunners for the Rule 144A and Regulation S transaction.

The roadshow will start in Zurich and Geneva and move to London, New York and Boston before concluding on April 2 in Los Angeles.

The lender is based in Guatemala City.

Woori Bank picks leads

South Korea's Woori Bank has mandated Barclays, BofA Merrill Lynch, BNP Paribas, Credit Agricole, HSBC, JPMorgan and Nomura Securities as bookrunners for a dollar-denominated issue of benchmark-sized notes due in 10 years, a market source said.

The Basel III-compliant, Rule 144 A and Regulation S notes are expected to price in April.

The lender is based in Seoul.

BRE Bank deal oversubscribed

The final book for Poland-based BRE Bank SA's new €500 million 2 3/8% notes due 2019 was approaching €1 billion on Tuesday morning, a market source said.

The notes priced on Monday at 99.484 to yield 2.486%, or mid-swaps plus 145 bps, in line with talk.

Commerzbank, Erste Group and UBS were the bookrunners for the deal.

Exim India draws orders

Also oversubscribed was Export Import Bank of India's recent $500 million 3 7/8% notes due 2019, which came to the market at 99.579 to yield 3.961%, Treasuries plus 220 bps.

The deal drew $2.9 billion in orders from 160 accounts, with 62% from Asia, 33% from Europe and 5% from the offshore United States.

Asset and fund managers picked up 60%, banks 20%, central banks and pension funds 9%, insurers 6% and private banks 5%.

Citigroup, JPMorgan and Standard Chartered Bank were the bookrunners for the Regulation S deal.

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