Shimao, Sun Hung Kai, Exim Bank of India, Lippo Karawaci price notes; Dubai bonds popular

By Christine Van Dusen

Atlanta, Jan. 7 - China's Shimao Property Holdings Ltd., China's Sun Hung Kai Properties Capital Market Ltd., Export Import Bank of India and Indonesia's Lippo Karawaci Tbk opened up the issuance pipeline with new deals on a busy, positive Monday for emerging markets assets.

"The new issue market is awakening in Latin America and Asia," a London-based trader said. "Very solid tone on what clearly was a day where it felt like a vast percentage of desks were staffed, following the Christmas and New Year break."

The Markit iTraxx SovX index spread opened Monday 1 basis point tighter while the corporate index was unchanged.

"Technicals have proved very strong over the last month and have driven spreads aggressively tighter," a London-based analyst said. "It feels like there is still cash to be put to work, so if issuance comes in lighter than expected, we may drive tighter still on higher-beta names."

But issuance is expected to continue apace, which should improve liquidity, she said.

"We anticipate the start of new issuance to test recent market resilience," she said.

Indeed, numerous issuers have entered the pipeline, with possible deals ahead from China's Hysan Development Co. Ltd., China Guangdong Nuclear Power Group, China-based Champion Real Estate Investment Trust, Singapore's Biosensors International Group Ltd., Colombia's Empresa de Telecom de Bogota (ETB), Chile's CorpBanca SA, Chile's Automotores Gildemeister SA and Brazil's Tonon Bioenergia SA.

In the secondary market on Monday, most names from Dubai traded very well, with demand noted for Emirates Airlines, Jafza Holdings and DPWorld, the trader said.

Dubai bonds in demand

Higher-beta and higher-spread names from Dubai remained "in vogue" on Monday, the London trader said.

Meanwhile, Bahrain's 2020s and 2022s were slightly off their highs while Dar al-Arkan seemed to have "stalled" at the 109½ bid, 110 offered level, he said.

"Still seeing interest in Kipco's 2020s and Burgan Bank's 2020s," he said.

Locals like TAQA, IPIC

In other trading, Abu Dhabi National Energy Co. (TAQA) and International Petroleum Investment Co. (IPIC) saw local demand.

"But against that, some international accounts are happy letting go of paper, especially on a hedged basis," a trader said.

Bonds from Majid al-Futtaim Holdings were seen 30 bps to 40 bps tighter on the week while Emaar Properties' 2019s closed Monday at 110½ bid, 111 offered.

"While this bond is 50 bps tighter on the month, I still think it looks like an OK value," he said.

African bonds get a lift

From Africa, sovereign bonds continued to thrive on Monday, a trader said.

"Senegal just lifted at 1201/2. Ghana printed at 118," he said. "Nigeria is very hard to find. Gabon is 122¼ on the bid side."

And Zambia's bonds, which traded below par before Christmas, were seen Monday at 101 3/8 bid.

Shimao does deal

In its new deal, China-based property developer Shimao sold $800 million 6 5/8% notes due Jan. 14, 2020 at par to yield 6 5/8% after price talk in the 6¾% area.

HSBC, Standard Chartered Bank, UBS, Goldman Sachs and JPMorgan were the bookrunners for the Regulation S deal.

The proceeds will be used to refinance the company's outstanding debt and fund existing and new projects, as well as for general corporate purposes, according to a report from Moody's Investors Service.

"The proposed bonds, which come after the company's $670 million club loans concluded in December 2012, will enhance Shimao's liquidity and will also improve its funding stability through lengthening its debt maturity profile," said Franco Leung, a Moody's analyst, in a statement.

Sun Hung Kai sells notes

Also from China, Hong Kong-based holding company Sun Hung Kai Properties Capital Market priced a $500 million issue of 3 5/8% notes due Jan. 16, 2023 at 99.386 to yield 3.699%, or Treasuries plus 162.5 bps.

Deutsche Bank, HSBC and Standard Chartered Bank were the bookrunners for the Regulation S-only deal.

And Mumbai-based Export Import Bank of India sold $750 million 4% notes due Jan. 14, 2023 at 99.033 to yield 4.119%, or Treasuries plus 220 bps, a market source said.

The notes priced at the tight end of talk, set at the Treasuries plus 225 bps area.

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

Lippo Karawaci prints bonds

Indonesia-based development company Lippo Karawaci, through special-purpose vehicle Theta Capital Pte. Ltd., priced a $130 million increase of its 6 1/8% notes due Nov. 14, 2020 (B1/BB-/BB-) at 104.375, a market source said.

Deutsche Bank, Bank of America Merrill Lynch, Credit Suisse and Citigroup were the bookrunners for the Regulation S deal.

The proceeds will be used to refinance the company's outstanding 2015 notes.

The outstanding size is $273.3 million.

Chinese corporates hit road

In deal-related news, China-based commercial property developer Hysan is on a roadshow this week for a possible issue of notes, a market source said.

HSBC, JPMorgan and UBS are arranging the marketing trip, which will be held in Asia.

And state-owned power company China Guangdong Nuclear Power Group has revised talk to the 3.6% area for its planned increase of a renminbi-denominated issue of 3 ¾% notes due Nov. 1, 2015.

ABCI, BOCI, Chinatrust Commercial Bank, China Development Bank and ICBC Asia are the bookrunners for the Regulation S-only deal.

Property developers plan deals

China-based Champion Real Estate Investment Trust has mandated Citigroup, HSBC and UBS for a roadshow in Hong Kong and Singapore, a market source said.

A dollar-denominated issue of notes may follow.

And Guangzhou, China-based real estate company Hopson Development has mandated UBS and ICBC Asia for a roadshow to market a possible issue of notes, a market source said.

The roadshow began Monday in Hong Kong and will conclude Tuesday in Singapore.

Biosensors, ETB plan roadshows

A roadshow is planned for Singapore-based medical devices company Biosensors International Group starting Jan. 10 for a possible issue of notes, a market source said.

Credit Suisse (Singapore) Ltd. and Standard Chartered Bank are arranging the marketing trip.

And Colombia-based telecommunications company ETB is on a roadshow for its planned issue of notes via Deutsche Bank Securities and Goldman Sachs.

The investor meetings for the Rule 144A and Regulation S deal began Jan. 4 and will be held in Lima, London, Los Angeles and New York before concluding on Wednesday in Boston.

The dollar- and Colombian peso-denominated notes are expected to be worth up to $300 million.

CorpBanca on deck

In other news from Latin America, Chile-based financial institution CorpBanca is on a roadshow for its planned dollar-denominated issue of senior notes, a market source said.

The roadshow began Jan. 4 in Lima and will travel to Los Angeles, London and New York before wrapping up on Wednesday in Boston.

Citigroup and JPMorgan are bookrunners for the Securities and Exchange Commission-registered deal. CorpBanca Corredores de Bolsa SA is co-manager.

The proceeds will be used for general corporate purposes, primarily to fund lending activities.

Gildemeister, Tonon ahead

Chile-based auto distributor Gildemeister is on a roadshow with JPMorgan for a possible issue of notes, a market source said.

The marketing trip began on Jan. 3 in Los Angeles and will move to London and Boston before ending on Jan. 9 in New York.

A Rule 144A and Regulation S deal may follow.

And Brazilian sugar and ethanol producer Tonon has mandated BTG Pactual, Itau BBA and Santander to lead a roadshow for a $200 million issue of seven-year notes.

The roadshow will begin Tuesday in Santiago and travel to New York on Jan. 9 and Jan. 10, then move to Los Angeles on Jan. 11, London on Jan. 14 and Boston on Jan. 15.

Kaisa notes oversubscribed

In other news, the final book for China-based property development company Kaisa Group Holdings Ltd.'s recent $500 million 10 ¼% notes due 2020 was $9.9 billion with 332 accounts involved, a market source said.

The notes priced at par with Citigroup Global Markets Ltd., Credit Suisse Securities (Europe) Ltd., J.P. Morgan Securities plc and UBS AG, Hong Kong Branch.

About 86% of the orders came from Asia and 14% from Europe. Asset and fund managers accounted for 84%, private banks 10%, banks 4%, insurance 1% and corporates 1%.

Country Garden attracts orders

Also oversubscribed was the recent $750 million issue of 7½% notes due Jan. 10, 2023 from China-based real estate developer Country Garden Holdings Co. Ltd.

The Rule 144A and Regulation S deal priced at par via bookrunners Goldman Sachs, JPMorgan, BOC International and ICBC International Capital Ltd.

The final book was $18.4 billion.

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