Primary sees RioPrevidencia, Turk Telekom price; recent deals from Emaar, Etisalat move up

By Aleesia Forni

Virginia Beach, June 12 – New deals from Brazil’s RioPrevidencia, Oversea-Chinese Banking Corp. Ltd. and Turkey’s Turk Telekomunikasyon AS came to the primary market on Tuesday during another strong session for emerging markets.

These new trades attracted solid demand, with all three deals pricing tighter than initial guidance.

In other primary news on Thursday, Mexico’s Grupo Bimbo SAB announced plans to begin a roadshow in the week ahead, a source said.

Goodman HK Finance also joined the forward calendar on Thursday, announcing price talk for a planned dollar deal.

In secondary action, a trader quoted Dubai’s Emaar Malls Group’s new notes up about ½ a point, while Abu Dhabi’s Etisalat new four-tranche deal traded up ½ to 1½ points in the secondary market.

Both deals priced during Wednesday’s session.

RioPrevidencia sells notes

The emerging markets space saw Brazil’s RioPrevidencia sell $2 billion of 6¼% 10-year notes at 99.998 on Thursday.

Pricing was at the tight end of talk, which was set in the mid-6% area.

The notes were issued by Rio Oil Finance Trust.

BB Securities and BNP Paribas were the bookrunners for the Rule 144A and Regulation S deal.

RioPrevidencia is the public pension fund for Rio de Janeiro.

OCBC sells sub bonds

Oversea-Chinese Banking was also in Thursday’s primary.

The bank priced $1 billion of 4¼% 10-year tier 2 subordinated bonds (expected: A2/BBB+/A+) in line with talk at Treasuries plus 175 basis points.

Talk had firmed around 15 bps from earlier guidance.

The notes sold at 99.108 to yield 4.361%.

BofA Merrill Lynch, HSBC, J.P. Morgan Securities LLC and Oversea-Chinese Banking were the bookrunners for the Rule 144A and Regulation S deal.

Proceeds will be used for general corporate purposes.

The issuer is a financial group based in Singapore.

Turk Telekom prices tight

Turkey’s Turk Telekomunikasyon priced a $1 billion two-part offering of notes (expected rating: //BBB-) in five- and 10-year tranches in a Rule 144A and Regulation S deal on Thursday, according to a market source.

A $500 million tranche of 3¾% five-year notes sold at 99.612 to yield 3.836%, or mid-swaps plus 210 bps.

A second tranche was $500 million 4 7/8% 10-year bonds priced at 99.165 to yield 4.982%, or mid-swaps plus 230 bps.

Both tranches sold tight of guidance.

Barclays, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Emirates NBD and J.P. Morgan Securities LLC were the joint bookrunners.

The telecommunications company is based in Ankara, Turkey.

Goodman sets talk

In forward calendar news, Goodman HK Finance set price guidance for a planned dollar-denominated offering of 10-year senior notes (expected: /BBB+/) at Treasuries plus 180 bps, according to a market source.

HSBC, ING, Credit Agricole and Natixis are the joint bookrunners.

The notes will be guaranteed by Goodman Hong Kong Logistics Fund and Goodman HK Investments.

Goodman HK is a real estate trust based in Hong Kong.

Grupo Bimbo roadshow

Also on Thursday, Mexico’s Grupo Bimbo announced plans to begin a roadshow on Monday ahead of a planned dollar-denominated Rule 144A and Regulation S offering of notes (expected: /BBB/BBB), a market source said.

Citigroup, HSBC, J.P. Morgan Securities LLC and Mitsubishi UFJ Securities are arranging the meetings.

Grupo Bimbo is a Mexico City-based bakery and food company.

Emaar oversubscribed

The orderbook for Emaar Mall Group’s recent $750 million deal reached $5.4 billion from more than 200 accounts, according to a market source.

The 4.564% 10-year Islamic bonds sold at par with a spread of mid-swaps plus 182.5 bps on Wednesday, according to a market source.

The notes were quoted at 100½ bid on Thursday.

Around 38% of the orders were from Europe, 33% from the Middle East and 29% from Asia.

Fund Managers picked up 54%, banks 23%, private banks 11%, insurance 7% and central banks 5%.

Dubai Islamic Bank, Emirates NBD Capital, First Gulf Bank, Mashreq, Morgan Stanley and National Bank of Abu Dhabi were the bookrunners for the Regulation S sukuk.

Emaar Malls is a subsidiary of Dubai-based developer Emaar Properties.

Etisalat moves up

The new $4.3 billion-equivalent four-part issue from Abu Dhabi’s Etisalat, which priced on Wednesday, traded up in the secondary market.

The company’s $500 million of 2 3/8% five-year bonds moved up to 100.58 bid, 100.73 offered.

The notes sold at 99.691 to yield mid-swaps plus 67.5 bps.

A $500 million of 3½% 10-year bonds, which sold at 99.059 to yield mid-swaps plus 87.5 bps, was quoted at 100.42 bid, 100.67 offered.

The €1.2 billion tranche of 1¾% notes due 2021 traded up to 99½ bid, 99.65 offered.

Pricing was at 99.051 to yield 80 bps over mid-swaps.

A €1.2 billion 2¾% bond due 2026, which sold at 98.328 to yield 110 bps over mid-swaps, was quoted at 99.3 bid, 99.7 offered.

Deutsche Bank, Goldman Sachs, HSBC and RBS were the bookrunners.

Etisalat is a telecommunications provider.

Hainan oversubscribed

The book for China’s Hainan Airlines Co. Ltd.’s recent RMB 1.3 million tap reached more than RMB 2 billion.

Banks picked up 55%, private banks 27% and fund managers 15%.

The add-on to the company’s 6¼% notes due 2017 sold at par on Wednesday, according to a market source.

JPMorgan, UBS, CLSA, DBS Bank, Deutsche Bank and ICBC were the bookrunners for the Regulation S deal.

The proceeds will be used for refinancing, capital expenditures, working capital and general corporate purposes.

The total issue size now sits a RMB 3 billion.

Hainan Airlines is based in Haikou, China.

Christine Van Dusen contributed to this review

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