Panama prices tight; Turk Eximbank, African Development, Chong Hing on deck; Bahrain widens

By Aleesia Forni

Virginia Beach, Sept. 15 – Panama came to market with a $1.25 billion offering of global bonds on Monday during a mostly weaker session for emerging markets.

“The overhang of supply, rates move and general risk sentiment moves last week sees some bonds remaining very tricky,” a trader said.

In other primary happenings on Monday, BBVA Banco Continental announced a $300 million offering of subordinated tier 2 notes.

Export Credit Bank of Turkey SA (Turk Eximbank), African Development Bank and Chong Hing Bank Ltd. are each planning to enter the primary market with new dollar-denominated bond offerings.

Both Turk Eximbank and Chong Hing Bank will begin roadshows this week ahead of the planned transactions.

Also on Monday, Korea Western Power Co. Ltd. announced price talk for a proposed five-year dollar notes sale.

The recent 6% notes priced by Bahrain traded wider in the secondary market, according to a trader.

“Decent effort all told,” he said.

In another issue from that region, the trader noted that the recently priced perpetual bonds from Dubai’s Emirates NBD “saw good retail demand” on Monday.

The bonds were trading down one point from re-offer, he said.

The notes sold at par on Thursday.

Panama prices tight

Panama priced $1.25 billion of 4% global bonds (Baa2/BBB/BBB) due 2024 with a spread of Treasuries plus 150 bps, according to a market source.

The notes sold tight of talk, which firmed around 10 bps from initial guidance.

The bookrunners were BofA Merrill Lynch and Citigroup Global Markets Inc.

Panama will use the proceeds to fund 2014 budgetary expenditures and may use a portion for pre-funding of the 2015 budget.

BBVA plans tier 2 notes

BBVA Banco Continental plans to sell $300 million of 15-year subordinated tier 2 notes (/BBB/BBB+), according to a market source.

Bookrunners are BBVA Securities Inc., BofA Merrill Lynch and Goldman Sachs & Co.

BBVA Banco Continental is a lender based in Lima.

Turk Eximbank sets roadshow

Turk Eximbank will begin a roadshow on Monday ahead of a planned dollar-denominated offering of seven-year notes, a market source said.

The bookrunners are MUFG, Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Mizuho Securities.

The notes will be sold via Rule 144A and Regulation S.

Turk Eximbank is an Ankara, Turkey-based export credit agency.

African Development eyes bonds

African Development Bank is planning to price a benchmark seven-year offering of dollar-denominated bonds, according to a market source.

The bank has mandated BNP Paribas Securities Corp., Citigroup Global Markets Inc., Goldman Sachs & Co. and Nomura to lead the deal.

The issuer is a regional development lender with headquarters in Tunis, Tunisia.

Chong Hing investor meetings

Chong Hing Bank has scheduled a roadshow to begin on Tuesday ahead of a planned offering of dollar-denominated notes, a market source said.

The bookrunners are Credit Suisse Securities, HSBC Securities, Nomura Securities and UBS Securities LLC.

Chong Hing is a Hong Kong-based lender.

Korea Western sets talk

In other primary news from that region, Korea Western Power has set price talk for a planned five-year offering of dollar-denominated bonds in the Treasuries plus 95 bps area, a market source said.

Barclays, BofA Merrill Lynch and Standard Chartered Bank are the bookrunners.

The company plans to use the proceeds for general corporate purposes, including capital expenditures, working capital and refinancing, according to a Moody’s Investors Service news release.

Korea Western engages in the production and supply of electricity and has headquarters in Seoul, South Korea.

Bahrain notes widen

Bahrain’s $1.25 billion of 6% 30-year notes traded at 100 5/8 bid on Monday, a trader said.

The notes (expected ratings: /BBB/BBB) sold at par to yield 6% on Wednesday, a syndicate source said.

The notes were initially talked at a yield in the low-6% area.

Citigroup, Gulf International Bank, MUFG and Standard Chartered Bank were the bookrunners for the Rule 144A and Regulation S deal.

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