Kenya prints notes amid turmoil; EM spreads tighten; SriLankan Airlines sets roadshow

By Christine Van Dusen

Atlanta, June 17 – Kenya, Commercial Bank of Qatar, National Bank of Ras Al Khaimah (RAKbank), Nigeria’s Access Bank plc, China’s Noble Group Ltd. and Singapore’s Koh Brothers Group Ltd. sold notes on Tuesday as spreads recovered from headlines out of Kenya and Iraq.

“We are seeing a small bounce this morning, with credits a few basis points tighter, on average,” a London-based analyst said.

In Kenya on Monday, terrorists attacked and killed about 48 people watching the World Cup. And in Iraq, violent clashes between Iraqi security forces and Islamic militants continued. All of that moved spreads wider on Monday.

On Tuesday, emerging markets assets recovered some losses. And Kenya went ahead and priced a two-tranche issue of $2 billion notes due in five and 10 years, a market source said.

The $500 million 5 7/8% notes due 2019 came to the market at par to yield 5 7/8%, following talk in the low-6% area.

The $1.5 billion 6 7/8% notes due 2024 priced at par to yield 6 7/8%, following talk in the low-7% area.

Other pricing details were not immediately available on Tuesday.

Barclays, JPMorgan, Standard Bank and QNB Capital were the bookrunners for the Rule 144A and Regulation S deal.

The notes were up between 2 points and 2¾ points on Tuesday morning, a trader said.

“The bonds are trading well,” she said.

In other deal-related news, some issuers gave guidance for upcoming deals, including Ecuador and China’s Cheung Kong (Holdings) Ltd. And SriLankan Airlines Ltd. made plans for a roadshow.

Issuance from Qatar bank

In its new deal, Commercial Bank of Qatar priced a $750 million issue of 2 7/8% notes due June 24, 2019 at 99.497 to yield 2.984%, or mid-swaps plus 117 bps, a market source said.

The notes priced tighter than talk. Guidance was initially set in the 135 bps area before it was revised to mid-swaps plus 120 bps to 125 bps.

BofA Merrill Lynch, HSBC and Morgan Stanley were the bookrunners for the Regulation S deal.

The bank provides retail and wholesale banking services and is based in Doha, Qatar.

“The name does not issue very often, and we expect it will be popular given how well Qatari financial names generally trade,” a trader said.

RAKbank prints bonds

United Arab Emirates-based RAKbank sold $500 million 3 ¼% notes due June 24, 2019 at 99.275 to yield mid-swaps plus 160 bps, a market source said.

The notes were talked at a spread in the 170 bps area.

National Bank of Abu Dhabi and Standard Chartered Bank were the bookrunners for the Regulation S deal.

The issuer is a commercial bank based in Dubai.

Nigeria’s Access Bank priced a $400 million issue of 9¼% notes due June 24, 2021 (expected ratings: /B/B-) at 99.023 to yield 9½%, a market source said.

Citigroup, Deutsche Bank and Goldman Sachs were the bookrunners for the Rule 144A and Regulation S deal.

Noble prices notes

China’s Noble Group priced $350 million 6% perpetual notes at par to yield 6%, or Treasuries plus 426 bps, a market source said.

BofA Merrill Lynch, Citigroup, HSBC, JPMorgan and Societe Generale were the bookrunners for the Regulation S deal.

The proceeds will be used for general corporate purposes and for the refinancing of the company’s 8½% perpetual capital securities issued on Nov. 1, 2010.

Noble Group is a Hong Kong-based conglomerate that focuses on raw materials.

Koh Brothers does deal

Singapore’s Koh Brothers Group sold S$50 million 4.8% notes due Jan. 2, 2018 at par to yield 4.8%, a market source said.

HSBC was the bookrunner for the Regulation S deal.

Koh Brothers is a Singapore-based investment holding company that provides management services.

Guidance from Ecuador

Ecuador set initial talk in the low-8% area for its upcoming issue of benchmark-sized and dollar-denominated notes due in 10 years, a market source said.

Citigroup is the global coordinator. Citigroup and Credit Suisse are the bookrunners.

Cheung Kong sets talk

China’s Cheung Kong (Holdings) Ltd. set talk in the Libor plus 75 bps area for its upcoming issue of dollar-denominated and benchmark-sized fixed-rate notes due in three years (/A-/), a market source said.

Deutsche Bank is the sole bookrunner for the Regulation S deal.

The proceeds will be used for general corporate purposes.

Cheung Kong is a Hong Kong-based development conglomerate.

Roadshow for airline

SriLankan Airlines will set out on Wednesday for a roadshow to market a dollar-denominated issue of notes, a market source said.

Standard Chartered Bank is the bookrunner for the Regulation S deal.

The roadshow will be held in Asia and Europe.

Slovenian corporate issues

On Monday, Slovenia’s Petrol dd Ljubljana sold €265 million 3¼% notes due June 24, 2019 at 99.32 to yield 3.4%, or mid-swaps plus 270.8 bps, a market source said.

The notes were initially talked at a yield in the 3¾% area.

JPMorgan was the bookrunner for the Regulation S-only deal.

The oil and energy company is based in Ljubljana, Slovenia.

Orders for eSun

The final book for China-based eSun Holdings Ltd.’s new RMB 650 million 8 3/8% notes due June 24, 2018 was RMB 1 billion from about 59 investors, a market source said.

The notes priced at par to yield 8 3/8% with ANZ, DBS, HSBC and UBS in a Regulation S deal.

About 78% of the orders came from Hong Kong and 22% from Singapore, with 59% from fund managers, 15% from private banks 13% from banks and 13% from corporates and others.

eSun is a Hong Kong-based investment holding company for subsidiaries engaged primarily in the media and entertainment industries.

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