Primary sees deals from Dubai, Tencent, UBI, Sinochem, Kasikornbank; Ukraine tension continues

By Christine Van Dusen

Atlanta, April 22 - Dubai, China's Tencent Holdings Ltd., Union Bank of India, China's Sinochem Group and Thailand's Kasikornbank PCL priced notes on Tuesday as investors remained concern about the crisis in Ukraine.

"Thursday's Geneva accord had demanded an end to violence in Eastern Ukraine and that illegal groups give up their weapons and leave government buildings," a London-based analyst said. "The market reacted positively to that announcement, but with reports of deaths in Ukraine over the extended weekend, tensions are rising again."

Still, paper from Russia was firm on Tuesday morning, with demand sighted for Vimpelcom.

"After they reached an agreement to sell a 51% stake in their Algerian subsidiary, the bonds went up 2 points," she said. "Evraz Group is also performing well."

In other trading on Tuesday, most bonds from Central and emerging Europe were firm, with Hungary's 2041 a particular standout.

"Interesting day," a London-based trader said. "The most active names in the Middle East were Dubai Electricity and Water Authority, Aldar Properties and Saudi Electricity Co. Speaking of SECO, their 2044 is already in pole position for 'bond of the week.'"

The SECO bond closed 15 basis points better, he said.

Existing paper from Dubai and its corporates closed lower in response to the new deal from the sovereign, he said.

"Perpetuals from the Middle East were again a mixed bag," he said. "Dubai Islamic Bank is back just above par and Emirates Islamic Bank is trading in the 96¾ to 97¼ context."

Meanwhile, market sources were whispering about a possible issue of notes from India's Tata Motors.

Dubai prices bonds

Dubai sold $750 million 5% notes due 2029 at par to yield 5%, or mid-swaps plus 177.1 bps, a market source said.

Dubai Investment Bank, Emirates NBD Capital, HSBC, National Bank of Abu Dhabi and Standard Chartered Bank were the bookrunners for the Regulation S deal.

"We expect that to prove popular," a trader said.

Tencent sells notes

China-based investment holding company Tencent priced a two-tranche issue of $2.5 billion notes due 2017 and 2019, a syndicate source said.

The $500 million 2% notes due in three years priced at 99.797 to yield 2.07%, or Treasuries plus 115 bps, matching talk.

The $2 billion 3 3/8% notes due in five years priced at 99.895 to yield 3.398%, or Treasuries plus 165 bps. The notes priced at the tight end of talk, set at Treasuries plus 165 bps to 170 bps.

Deutsche Bank, Barclays, JPMorgan, HSBC, ANZ, BofA Merrill Lynch, Bank of China, Citigroup, Credit Suisse, Goldman Sachs and Standard Chartered Bank were the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used for general corporate purposes.

Sinochem prints bonds

In another new deal, China-based conglomerate Sinochem Group sold $500 million 3¼% notes due 2019 at 99.826 to yield Treasuries plus 155 bps, a syndicate source said.

The notes were talked at a spread in the Treasuries plus 160 bps area.

ANZ, Citigroup, DBS, Goldman Sachs, HSBC, JPMorgan and UBS were the bookrunners for the Rule 144A and Regulation S deal.

Sinochem Group is a Hong Kong-based business conglomerate with interests in agriculture, energy, chemicals, real estate and finance.

Kasikornbank does deal

Thailand-based bank Kasikornbank sold $350 million 3½% notes due 2019 at 99.599 to yield 3.581%, or Treasuries plus 185 bps, a market source said.

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

The issuer is a Bangkok-based bank.

New issue from UBI

Also on Tuesday, Union Bank of India priced $350 million 4½% notes due 2019 at 99.764 to yield 4.549%, or Treasuries plus 280 bps, a market source said.

BofA Merrill Lynch, BNP Paribas, Citigroup, JPMorgan and Standard Chartered Bank were the bookrunners for the Regulation S deal.

Korea Expressway sets talk

Korea Expressway Corp. gave guidance of Treasuries plus 80 bps to 85 bps for its upcoming $500 million issue of three-year notes, a market source said.

BofA Merrill Lynch, Deutsche Bank, Goldman Sachs and Nomura Securities are the bookrunners for the Rule 144A and Regulation S deal.

Korea Expressway runs the toll roads in South Korea.

SMC sets roadshow

Philippines-based SMC Global Power Holdings Corp. has mandated BofA Merrill Lynch, Credit Suisse, DBS Bank, Deutsche Bank, HSBC, Mizuho Securities and Standard Chartered Bank to lead a roadshow, a market source said.

The trip will begin on Thursday. A dollar-denominated issue of Regulation S notes is expected to follow.

SMC Global Power is an electricity generator and seller based in Mandaluyong City, Philippines.

Banglalink postpones

Bangladesh's Banglalink Digital Communications Ltd. has postponed its planned issue of $300 million five-year notes, which were talked at yield in the 9% area, a market source said.

Citigroup was the sole bookrunner for the Rule 144A and Regulation S deal.

No other details were immediately available on Tuesday.

The issuer is a cellular services provider and a subsidiary of Malta's Telecom Ventures Ltd., part of Egypt's Global Telecom Holding.

© 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.