Primary hosts UPL, ITC, OFCB; investors watch ECB, deals from Bahrain, Pakistan, MTN Group

By Christine Van Dusen

Atlanta, Oct. 6 – India’s UPL Ltd., China’s ITC Properties Group Ltd. and Russia’s OFCB Capital plc sold notes on Thursday as investors kept an eye on the European Central Bank, upcoming U.S. data and the new issues from Bahrain, Pakistan and South Africa’s MTN Group Ltd.

“We are seeing a firm start into the morning after speculation about a potential ECB tapering has receded,” a London-based analyst said.

The sovereign priced a $2 billion issue of notes due in 2024 and 2028, a market source said.

The $1 billion 5.624% Islamic bonds due Feb. 12, 2024 priced at par to yield 5.624%, or mid-swaps plus 424 basis points, following talk in the 6% area. Those notes were seen at 100.80 bid, 100.90 on Thursday morning.

The $1 billion 7% conventional bond due Oct. 12, 2028 priced at par to yield 7%, or mid-swaps plus 539 bps. Talk was set in the 7¼% area. Those notes were spotted at 101.10 bid, 101.20 offered on Thursday.

Bank ABC, BNP Paribas, Credit Suisse, JPMorgan and Standard Chartered Bank were the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used for general governmental purposes.

The new notes from Pakistan – $1 billion of 5½% Islamic bonds due 2021 that priced at par – traded on Thursday at 100.30 bid, 100.45 offered.

Citigroup, Deutsche Bank, Dubai Islamic Bank, Noor Bank and Standard Chartered Bank were the bookrunners for the Rule 144A and Regulation S deal.

In other trading on Thursday, Turkey tightened by 2 basis points to 3 bps “as locals soak up bonds,” a trader said.

MTN sees activity

MTN Group’s new notes saw some activity in trading on Thursday.

The deal included $500 million 5.373% notes due Feb. 13, 2022 that priced at par to yield 5.373%. Those bonds were seen Thursday at par bid, 100¼ offered.

The $500 million 6½% notes due Oct. 13, 2026 priced at par to yield 6½%. These notes outperformed, trading at 100.12 bid, 110.62 offered.

Citigroup, JPMorgan, Credit Suisse, Deutsche Bank and ANZ were the bookrunners for the Rule 144A and Regulation S deal.

“The issuer hosted roadshows in the first half of September, but likely postponed the transaction after Nigeria’s downgrade,” the analyst said. “Uncertainties, however, remain following recent allegations by Nigerian lawmakers that the South African based carrier illegally expatriated almost $14 billion out of the country.”

UPL sells bonds

In its new deal, India’s UPL priced $500 million 3¼% notes due in 2021, according to a company letter.

Citigroup and JPMorgan were the joint global coordinators and – along with ANZ, Credit Suisse and Deutsche Bank – the joint bookrunners for the Rule 144A and Regulation S deal.

Other details were not immediately available on Thursday.

UPL, formerly known as United Phosphorus Ltd., is a Mumbai-based provider of crop protection products, seeds and chemicals.

Issuance from ITC

China’s ITC – via Treasure Generator Ltd. – priced $200 million 4¾% notes due Oct. 14, 2021 at 98.906 to yield 5%, a market source said.

Credit Suisse and Sun Hung Kai Financial were the bookrunners for the Regulation S deal.

The proceeds will be used for general corporate purposes.

ITC is a Hong Kong-based property development and investment company.

OFCB prices LPNs

Russia-based OFCB sold $400 million 4½% notes due Nov. 11, 2019 at par to yield 4½%, according to a company announcement and a market source.

Citigroup, Commerzbank, ING Wholesale Banking London, Otkritie Bank, RBI Group, Societe Generale, UniCredit and VTB Capital were the bookrunners for the deal.

OFCB is a Moscow-based financial services company.

Hipotecario talks peso notes

In other deal-related news, Argentina’s Banco Hipotecario SA is planning an issue of peso-denominated amortizing notes with an average life of three years (expected ratings: B3/B-/), a market source said.

Deutsche Bank, Santander and BCP Securities are the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used for working capital, investment in tangible assets, loan origination and refinancing of liabilities.

Banco Hipotecario is a Buenos Aires-based commercial bank.

Roadshow for Latam

Chile’s Latam Airlines Group SA will set out on Oct. 12 for a roadshow to market a dollar-denominated issue of notes, a market source said.

Citigroup, JPMorgan, BNP Paribas, BofA Merrill Lynch, Deutsche Bank and Santander are the bookrunners for the Rule 144A and Regulation S deal.

Additionally, the company has launched a tender offer for up to $462.5 million of its outstanding $500 million 8 3/8% notes due 2021 and $300 million 7 3/8% notes due 2017.

The roadshow will be held in Chile, Europe and the United States.

Latam Airlines Group is based in Santiago.

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