Pemex, Bank of China, Lebanon sell notes; Greece plans deal; Lat-Am risk appetite improves

By Christine Van Dusen

Atlanta, April 9 - Mexico's Petroleos Mexicanos SAB de CV (Pemex), Korea's Suhyup Bank, Bank of China Ltd. and Lebanon printed notes on Wednesday as the market reacted to continuing international turmoil and Greece's plans for its first bond issue in about four years.

Keeping investors somewhat cautious were protests in Ukraine, questions about Ukrainian gas supply suspension and comments from the Federal Reserve.

"Russia opens weaker this morning, while Russian corporates underperform," a London-based analyst said.

Russia-based Evraz Group's bonds were down 1½ points on the back of weak results, she said. Sberbank and OAO Rosneft also traded lower.

"Novatek and Sibneft are being hit the most," she said.

In other trading on Wednesday, the new issue from Turkey - $1 billion 4 1/8% notes due 2023 at 99.447 to yield mid-swaps plus 281.5 basis points - traded up a point.

Deutsche Bank, ING and JPMorgan were the bookrunners for the Securities and Exchange Commission-registered deal.

"New issues in the EM space seem to be picking up, with Turkey returning with a third issue this year," a trader said. "Turkish corporates and banks were quiet this morning."

For its first new deal since plunging into economic chaos, Greece has mandated BofA Merrill Lynch, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan and Morgan Stanley as bookrunners for the euro-denominated issue of five-year notes, a market source said.

The deal is expected to come to the market on Thursday.

"Greece bringing a five-year deal at 5% seems to be in the news after being shut out last few years and being the original crisis starter," a New York-based trader said. "Doesn't that make everything else look cheap?"

Lat-Am in focus

Looking at Latin America, bonds from Venezuela and PDVSA outperformed on Wednesday morning as risk appetite improved, a New York-based trader said.

The sovereign's 2027s were trading up at 80½ before moving to 81.65 while PDVSA's 2017s moved up to 89¼ and later clocked in at 90.

Activity for bonds from Argentina was light on Wednesday morning, he said. And low-beta credits hovered near Tuesday's close amid mostly balanced flows.

Corporate bonds from Latin America were firm, even though the market lacked depth and credit spreads were somewhat vulnerable, another New York-based trader said.

Pemex prices deal

Mexico-based petrochemical company Pemex priced a €1 billion issue of 3¾% notes due 2026 at 99.753 to yield 3.776%, or mid-swaps plus 175 bps, a market source said.

Barclays, HSBC and Morgan Stanley were the bookrunners for the Regulation S deal.

And Korea's Suhyup Bank sold $300 million 2 5/8% notes due 2019 at 99.494 to yield 2.734%, or Treasuries plus 105 bps via Barclays, Citigroup, Societe Generale and Standard Chartered Bank in a Regulation S deal.

Lebanon prints notes

In its new deal, Lebanon priced a $696.142 million two-tranche issue of notes due in 2020 and 2026, a syndicate source said.

The $341.431 million 5.8% notes due 2020 priced at par to yield 5.8%.

The $354.711 million tap of the 6.6% notes due 2026 priced at 99.147 to yield 6.7%.

Bank Audi, Byblos Bank and Deutsche Bank were the bookrunners for the Regulation S transaction.

Bank of China issues bonds

Also on Wednesday, Bank of China sold RMB 2 billion 3¼% notes due 2016 at par to yield 3¼%, a market source said.

The notes priced in line with talk, set at 3¼%.

Bank of China, ANZ, Commonwealth Bank of Australia, National Australia Bank, RBS and Westpac Institutional Bank were the bookrunners for the Regulation S deal, issued by the company's Sydney branch.

Finansbank sets roadshow

In other news, Turkey's Turkiye Finans Katilim Bankasi AS (Finansbank) is planning a roadshow to market dollar-denominated Islamic bonds, a market source said.

In March the lender announced plans for $750 million sukuk due in five years.

No other details were immediately available on Wednesday.

Finansbank is a lender based in Istanbul.

Hang Lung gives guidance

China's LP Finance Ltd. set talk in the Treasuries plus 240-bps area for its upcoming issue of dollar-denominated and benchmark-sized notes due in seven years, a market source said.

The notes, guaranteed by Hang Lung Properties Ltd., are part of a $3 billion medium-term note program.

HSBC and JPMorgan are leading the Regulation S deal.

Hang Lung is a Hong Kong-based real estate company.

Woori roadshow ahead

South Korea's Woori Bank will set out on April 14 for a roadshow to market a dollar-denominated offering of benchmark-sized notes due in 10 years, a market source said.

Barclays, BofA Merrill Lynch, BNP Paribas, Credit Agricole, HSBC, JPMorgan and Nomura Securities are the bookrunners for the Basel III-compliant, Rule 144A and Regulation S notes.

The lender is based in Seoul.

Votorantim taps leads

Brazil's Votorantim Cimentos SA has mandated Citigroup, HSBC, Santander GBM, BB Securities, Banco Votorantim and Bradesco BBI as bookrunners for a roadshow to market a euro-denominated issue of notes, a market source said.

The roadshow will begin on Thursday and travel from London to Frankfurt and Munich before concluding on April 15 in Amsterdam and Paris.

Votorantim Cimentos is a cement company based in Sao Paulo.

Saudi bank plans sukuk

National Commercial Bank of Saudi Arabia is looking to issue dollar-denominated Islamic bonds, a market source said.

No other details were immediately available on Wednesday.

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