Senegal, KDB price notes; Sharjah prices $1 billion sukuk; Union National brings notes

By Rebecca Melvin

New York, March 6 – The emerging markets primary came to life on Tuesday after a quiet start to the week with a number of deals pricing at terms that were tight compared to talk.

Senegal kicked things off with the launch of its dual tranches of notes for €1 billion and $1 billion. The euro-denominated 10-year notes launched to yield 4¾%, and the 30-year dollar notes launched with a yield of 6¾%. They priced 50 basis points below the wide end of initial talk.

In conjunction with the new bond offering (/B+/), the republic announced that it has received tenders for $350.54 million of its $500 million 8¾% notes due 2021 and will purchase $200 million of the notes, leaving $300 million outstanding.

Korea Development Bank priced $1 billion of notes (Aa2/AA/AA-) in fixed- and floating-rate tranches, including a $500 million tranche of three-year floating-rate notes priced at par to yield Libor plus 55 bps, which was tight compared to initial talk of Libor plus 70 bps.

Also in the primary space, the Emirate of Sharjah priced a $1 billion 10-year Islamic bond at par to yield mid-swaps plus 135 bps. Pricing of the Regulation S note, which has a distribution rate of 4.226%, came at the tight end of talk, which was guided to mid-swaps plus 135 bps to 140 bps from mid-swaps plus 150 bps area.

Also from the Middle East and Africa region, Union National Bank PJSC of Abu Dhabi priced $500 million of 4% five-year notes. The reoffered pricing for the deal (/A+/) was at 99.601 for a yield of 4.089%, or spread of mid-swaps plus 135 bps. That was tighter compared to initial talk in the mid-swaps plus 150 bps area.

Israel’s Teva Pharmaceutical Industries Ltd. set price talk for a four-part offering of $3.5 billion equivalent non-callable senior notes. The Rule 144A and Regulation S with registration rights offering is coming in tranches of dollar- and euro-denominated notes.

Teva Pharmaceutical Finance Netherlands III BV, the dollar-denominated issuing entity, is selling $2.25 billion of notes in two tranches to be split between six-year notes talked at 6% to 6¼% and 10-year notes talked at 7% to 7¼%.

Teva Pharmaceutical Finance Netherlands II BV, the euro-denominated issuing entity, is selling €1 billion of notes in two tranches to be split between four-year notes with price talk of 3¼% to 3½% and seven-year notes with price talk of 4½% to 4¾%. Pricing is slated for Wednesday for the Jerusalem-based pharmaceutical company.

Elsewhere, JSC Georgia Capital, the investment business of BGEO Group plc, priced $300 million of 6 1/8% six-year senior notes (expected ratings: B2/B+) at 98.77 to yield 6 3/8%. The Rule 144A and Regulation S notes were guided to 6 3/8% to 6½% from initial talk in the 6 5/8% area.

And Brazil’s Unigel Participacoes SA commodity chemical producer waded into a somewhat uncertain market with a seven-year offering planned subject to market conditions at the conclusion of a roadshow that began on Tuesday and is set to run through next week.

The proposed Rule 144A and Regulation S deal is being marketed by Morgan Stanley and UBS as joint bookrunners.

Meanwhile the roadshow for Paraguay’s potential $500 million transaction was expected to wrap up on Wednesday after starting on Tuesday.

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