ASL Marine issues as risk aversion takes hold; Lat-Am corporates widen, sovereigns tighten

By Christine Van Dusen

Atlanta, Sept. 24 – Singapore’s ASL Marine Holdings Ltd. sold notes on Wednesday as risk sentiment in Europe deteriorated on weaker economic data from Germany.

Bonds from Ukraine have been selling off so far this week, even as the conflict with pro-Russian rebels seems to be de-escalating, said Svitlana Rusakova of Dragon Capital.

There is concern that the sovereign will restructure, she said.

“Most bonds are now back to their year-to-date lows, though quasi-sovereigns are holding better than the sovereigns, possibly owing to their lower cash price,” she said.

From Latin America, corporate bonds took a bit of a beating by day’s end, with Petroleo Brasileiro SA (Petrobras) leading the way down, a New York-based trader said.

The company’s bonds have moved out 20 basis points since Sept. 15, he said.

Brazil-based Vale SA also opened wider during the morning, but tightened amid some buying before widening again by day’s end, he said.

Latin American sovereign bonds, meanwhile, tightened, he said.

Elsewhere in the emerging markets universe, liquidity was limited, a trader said.

In other news, Indonesia is expected to raise fuel prices in November, which would “reduce the nation’s subsidy and improve its fiscal health,” according to a report from Barclays.

That, plus a favorable outlook for supply and demand, should push yields lower.

“As such, we recommend tactically buying 20-year bonds,” the bank said.

Also on Wednesday, price guidance was released by Poland’s Synthos SA, China’s Bank of Communications and Brazil’s Cimento Tupi SA. And Singapore’s TEE Land Ltd. announced plans for issuance in Singapore dollars.

ASL Marine prints bonds

Singapore’s ASL Marine Holdings priced S$50 million 5.35% notes due Oct. 1, 2018 at par to yield 5.35%, a market source said.

OCBC was the sole bookrunner for the transaction.

ASL Marine is a Singapore-based shipping firm.

Synthos sets talk

Poland-based Synthos set talk in the 4¼% area for its upcoming issue of benchmark-sized notes due in seven years and denominated in euros, a market source said.

BNP Paribas, Citigroup and Deutsche Bank are the global coordinators and lead managers. Banco Santander, ING, PKO BP and UniCredit are the passive bookrunners for the Rule 144A and Regulation S deal.

The issuer produces synthetic rubber and styrenics.

BOC gives guidance

China’s Bank of Communications set talk at Treasuries plus 285 bps for its upcoming issue of benchmark-sized and dollar-denominated notes due in 10 years (expected rating: /BBB+), a market source said.

JPMorgan, Bank of Communications Hong Kong Branch, Citigroup, HSBC, Deutsche Bank, Credit Suisse, BNP Paribas and BOCOM International are the bookrunners for the Regulation S deal.

The proceeds will be used to boost the company’s tier 2 capital.

Bank of Communications is a Shanghai-based financial institution.

Tupi to tap notes

Brazil’s Cimento Tupi set talk in the par area for a tap of its existing 9¾% notes due on May 11, 2018, a market source said.

BofA Merrill Lynch and Credit Suisse are the bookrunners for the Rule 144A and Regulation S deal.

A roadshow for the deal will end on Thursday.

The proceeds will be used for debt refinancing and general corporate purposes.

The original $100 million issue priced in May of 2011 at 98.763 to yield 10%.

Cimento Tupi is a Rio de Janeiro-based producer, distributor and seller of cement and concrete.

TEE Land to issue notes

Singapore’s TEE Land has established a S$250 million notes program with DMG & Partners Securities and UOB, a market source said.

No other details were immediately available on Wednesday.

TEE Land is a residential and commercial property developer.

CCB draws orders

The final book for China Construction Bank Corp.’s new issue of RMB 1.3 billion three-year notes was RMB 2 billion, a market source said.

The notes priced at par to yield 3.8% on Monday with bookrunners ANZ, CBA and HSBC in a Regulation S deal.

NongHyup deal oversubscribed

Korea’s NongHyup Bank drew $1.2 billion in orders from 92 accounts for its new issue of $300 million 2¾% five-year notes, a market source said.

The notes priced at 99.816 to yield 2.879%, or Treasuries plus 100 bps, with BofA Merrill Lynch, Credit Agricole, Deutsche Bank, HSBC, Mizuho Securities and Standard Chartered Bank in a Rule 144A and Regulation S deal.

About 74% of the orders came from Asia, 18% from Europe and 8% from the European Union.

Fund managers picked up 59%, banks 19%, insurers and pension funds 19% and private banks 3%.

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