Issuance from Sinochem, Chexim, CNPC; Russia, Turkey trade up; Middle East gets squeezed

By Christine Van Dusen

Atlanta, May 7 - China's Sinochem Group, Export-Import Bank of China (Chexim) and China National Petroleum Corp. (CNPC) were among the issuers to sell notes on Wednesday amid better trading of emerging markets assets.

"With a lack of negative headlines out of Ukraine, [emerging markets] is generally buoyant this morning, with Russia continuing to rally," a London-based analyst said. "Turkey's 2030s are trading up."

The day also saw buyers for Russian corporates, she said.

"We would highlight, however, that there is a Russian military parade planned in the Crimea on Friday and a potential independence referendum in Donetsk on Sunday," she said. "Both present opportunities for an increase in tensions."

From the Middle East, bond prices were squeezed due to a lack of dealer inventory, a London-based trader said.

"As such, Qatar's 2040s and 2042s close 3 basis points to 5 bps better on the week," he said. "Abu Dhabi remains very solid indeed. Aldar Properties is back to 103 bid, 103¼ offered."

Looking to Latin America, bonds remained firm, with notes from Brazil's Petrobras continuing to tighten, a New York-based trader said.

In deal-related news on Wednesday, numerous issuers set price talk, including Brazil's Fibria Overseas Finance Ltd., Israel's Delek & Avner - Yam, Tethys Ltd., Agricultural Bank of China Ltd. and China's Jingrui Holdings Ltd.

Kazakhstan's JSC National Managing Holding KazAgro (KazAgro) and China's Yanzhou Coal Mining Co. Ltd. set roadshows while Bank of China Ltd. mandated bookrunners.

Market-watchers were also whispering about a possible issue of euro-denominated notes from Croatia.

TAQA, IPIC solid

In other trading on Wednesday, Abu Dhabi National Energy Co.'s (TAQA) bonds were solid, as were the notes from International Petroleum Investment Co. (IPIC), a trader said.

"Perpetuals ticked higher again," he said.

Bonds from Kuwait, particularly those from Burgan Bank, were laggards, he said.

"Some value there, I think, versus other regional names," he said. "But granted, it's not the most liquid."

Vale stops widening

Brazil's Vale SA stopped widening but still seemed "vulnerable," the New York trader said.

The new issue from Mexico's Fermaca Enterprises S de RL de CV - 6 3/8% notes due 2018 that priced at par - traded well, at 102, he said.

Banks from Peru were well bid and difficult to source, he said.

Chexim does deal

China's Chexim priced a three-tranche issue of RMB 3 billion notes due 2016, 2019 and 2024, a market source said.

The RMB 1.5 billion 3% notes due in two years priced at par to yield 3%.

The RMB 500 million 3.65% notes due in five years priced at par to yield 3.65%.

The RMB 1 billion 4.4% notes due in 10 years priced at par to yield 4.4%.

Bank of China, Bank of Communications, Barclays, Credit Agricole, Deutsche Bank, HSBC and Mitsubishi UFJ Securities were the bookrunners for the Regulation S deal.

The proceeds will be used to fund renminbi-denominated export credits and for general corporate purposes.

Sinochem prices bonds

China's Sinochem Group sold RMB 2.5 billion 3.55% notes due May 13, 2017 at par to yield 3.55%, a market source said.

ANZ, Bank of China, Credit Agricole, DBS Bank, HSBC, Morgan Stanley and Standard Chartered Bank were the bookrunners for the Regulation S deal.

The proceeds will be used for general corporate purposes.

In April the Hong Kong-based conglomerate priced a $500 million issue of 3¼% five-year notes at 99.826 to yield Treasuries plus 155 bps with ANZ, Citigroup, DBS, Goldman Sachs, HSBC, JPMorgan and UBS in a Rule 144A and Regulation S deal.

Chinese corporate issues

In another new deal, China National Petroleum priced a $1.5 billion two-tranche issue of notes due 2017 and 2019, a market source said.

The $750 million floating-rate notes due 2017 priced at par to yield Libor plus 90 bps. The notes were talked in the Libor plus 95 bps.

The $750 million 2¾% fixed-rate notes due 2019 priced at 99.187 to yield 2.926%, or Treasuries plus 127.5 bps. The notes were talked at a spread in the Treasuries plus 130 bps range.

Fibria gives guidance

Brazil-based pulp and paper company Fibria set talk in the Treasuries plus 325 bps area for its upcoming $500 million issue of 10-year notes, a market source said.

Citigroup, Credit Agricole CIB, Deutsche Bank, Goldman Sachs and Banco Votorantim are the bookrunners for the Securities and Exchange Commission-registered deal.

The proceeds will be used to fund the 2021 notes tender offer and for general corporate purposes.

Delek & Avner talks notes

Israel's Delek & Avner set talk for a total of $2 billion notes due 2016, 2018, 2020, 2023 and 2025, a market source said.

The $400 million notes due in 2016 were talked at a spread in the mid-swaps plus 237.5 bps area.

Talk for the $400 million notes due in 2018 was set with a spread in the 262.5 bps area.

Talk for the $400 million notes due in 2020 was set with a spread in the 275 bps area.

Talk for the $400 million notes due in 2023 was set with a spread in the 300 bps area.

And the $400 million notes due in 2025 were talked at a spread in the 312.5 bps area.

The proceeds will be used to repay indebtedness and for general corporate purposes.

Citigroup, JPMorgan and HBC are the bookrunners for the Rule 144A and Regulation S deal.

Guidance from Chinese bank

Agricultural Bank of China set talk in the 3.45% area for its upcoming issue of renminbi-denominated and benchmark-sized notes due in two years, a market source said.

Deutsche Bank is the bookrunner for the Regulation S deal, which could price as soon as Thursday.

Based in Beijing, the commercial bank has branches in mainland China, Hong Kong and Singapore.

Jingrui talks bonds

China's Jingrui Holdings set talk in the 13 5/8% area for its upcoming issue of dollar-denominated notes due in five years, a market source said.

Haitong International and UBS are the joint global coordinators, joint bookrunners and joint lead managers. HSBC is also a joint bookrunner and joint lead manager for the Regulation S offering.

Proceeds from the notes will be used to refinance existing debt and to fund new and existing property projects.

Pricing is expected to take place this week.

Roadshow for KazAgro

Kazakhstan's KazAgro will set out on May 12 for a roadshow to market a benchmark-sized issue of euro-denominated notes, a market source said.

Citigroup, HSBC and RBS are the bookrunners for the Regulation S deal.

KazAgro is an Astana, Kazakhstan-based agricultural company.

Yanzhou Coal plans roadshow

China's Yanzhou Coal Mining has mandated Deutsche Bank, UBS and Credit Suisse to lead a roadshow starting Thursday, a market source said.

An issue of notes may follow.

Other details were not immediately available on Wednesday.

The coal production, processing, marketing and transportation company is based in Zoucheng, China.

Bank of China taps leads

Bank of China has mandated Bank of China, Credit Suisse, Deutsche Bank and ING as bookrunners for a renminbi-denominated issue of benchmark-sized notes due in three years, a market source said.

The Regulation S notes are part of the company's $10 billion notes program.

OCBC, FirstRand sell notes

On Tuesday, Singapore's Oversea-Chinese Banking Corp. sold £250 million floating-rate notes due May 15, 2017 at par to yield Libor plus 40 bps via Nomura Securities, a market source said.

And South Africa's FirstRand Bank Ltd. priced CHF 140 million 2% notes due May 28, 2019 at 99.765 to yield mid-swaps plus 165 bps, a market source said.

Credit Suisse and UBS were the bookrunners for the deal.

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