Beijing Infrastructure, Alfa Bank, Korea Development bring deals; oil prices hit Lat-Am

By Christine Van Dusen

Atlanta, Nov. 13 – China’s Beijing Infrastructure Investment (Hong Kong) Ltd., Russia’s OJSC Alfa Bank and Korea Development Bank printed notes on a busy trading day for Middle Eastern bonds as oil prices declined.

Oil prices declined to less than $75 a barrel for the first time since 2010, which didn’t help names like Colombia’s Ecopetrol SA, a New York-based trader said.

Still, the company’s bonds didn’t appear to be too vulnerable on Thursday, he said.

Other Latin American bonds on Thursday didn’t see the kind of serious selling that took place during Wednesday’s session, the trader said. Flows from retail investors were “nicely mixed,” he said.

Bonds from Brazil-based Petroleo Brasileiro widened again, this time about 3 basis points, he said, while Brazil-based Vale SA’s notes moved wider in sympathy.

Banks from Colombia pulled back slowly as Bancolombia SA released disappointing third-quarter data.

High-grade names from Brazil, meanwhile, were weaker and saw very little volume.

The recent issue of notes from Peru-based cement and concrete company Union Andina de Cementos SAA (Unacem) – $625 million 5 7/8% notes due 2021 that priced at par – traded Thursday between 102.10 and 102.35.

On Wednesday the notes were quoted at 102¼.

BBVA, Deutsche Bank and Scotiabank were the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used for financing an acquisition, to refinance existing indebtedness and for general corporate purposes.

Mexico’s Cemex SAB de CV moved slightly lower, with the 2022s seen at 114½.

“That’s the lowest level in a few weeks,” the New York trader said. “Cemex volumes are greatly reduced this week.”

DP World acquisition

Looking to the Middle East, trading was busy on Thursday on the news that DP World was acquiring Economic Zones World – which houses the Jebel Ali Free Zone (Jafza) commercial and industrial park – for about $2.6 billion.

That translated into good interest for bonds from DP World and Jafza, as well as from Dubai-based DIFC Investments LLC, a London-based trader said.

DP World’s bonds closed Thursday about 2 bps wider while the 2037s were about 5/8 of a point lower. The 2017s, he said, were broadly unchanged.

“The Qatar curve moved a little wider on the day,” he said. “However, typically this market does turn a little soggy on Thursday evening and throughout Friday as the majority of locals are out.”

Emirates NDB notes ‘solid’

The new issue of Dubai-based Emirates NBD’s 3¼% notes due 2019 that priced at 99.963 faded a bit into the close on Thursday, moving to 100.20 bid, 100.30 offered, the London trader said.

“Still a solid effort,” he said.

BofA Merrill Lynch, BNP Paribas, Emirates NBD, HSBC and Standard Chartered Bank were the bookrunners for the Regulation S deal.

Chinese corporate sells notes

In its new deal, China’s Beijing Infrastructure Investment sold $1 billion notes in a two-tranche issue due 2020 and 2017, a market source said.

The deal included $300 million 3¼% notes due 2020 that priced at 99.753 to yield 3.303%, or Treasuries plus 167.5 bps.

The notes were talked at a spread in the Treasuries plus 170 bps area.

The $700 million 2 5/8% notes due 2017 priced at 99.8480 to yield 2.678%, or Treasuries plus 170 bps.

Those notes were talked at a spread of 170 bps to 175 bps.

JPMorgan, ICBC and Bank of China were the bookrunners for the Regulation S deal.

The proceeds from the notes will be used for the development of Beijing’s urban railway transit system, for working capital and for general corporate purposes.

Alfa Bank sells notes

Russia’s Alfa Bank priced $250 million 9½% notes due Feb. 18, 2025 (//BB+) at par to yield 9½%, or Treasuries plus 784.7 bps, a market source said.

Alfa Bank, BofA Merrill Lynch, Goldman Sachs, JPMorgan and UBS were the bookrunners for the Rule 144A and Regulation S deal.

Alfa Bank is a commercial lender based in Moscow.

Issuance from KDB

Korea Development Bank printed £250 million 2% notes due Dec. 20, 2018 at 99.654 to yield 2.078%, or Gilts plus 100 bps, a market source said.

The notes were talked at a spread in the low-100 bps area.

Barclays and RBS were the bookrunners for the Regulation S deal.

Chinese bank sets talk

China’s Bank of East Asia set talk in the Treasuries plus 275 bps area for a dollar-denominated issue of benchmark-sized notes due in 10 years, a market source said.

Citigroup, HSBC, JPMorgan and Morgan Stanley are the bookrunners for the Regulation S issue of Basel III-compliant tier 2 notes.

The bank is based in Hong Kong.

Protelindo roadshow ahead

Indonesia’s PT Profesional Telekomunikasi Indonesia Tbk (Protelindo) will set out on Nov. 17 for a roadshow to market a Singapore dollar-denominated issue of notes, a market source said.

DBS Bank and OCBC are the bookrunners for the deal.

Jakarta-based Protelindo builds and operates cellphone towers and is a subsidiary of PT Sarana Menara Nusantara Tbk.

Elementia sets marketing trip

Mexico’s Elementia SA de CV will embark on Nov. 17 on a roadshow to market a dollar-denominated issue of notes (expected ratings: /BB+/BB+), a market source said.

Citigroup, HSBC and Santander are the bookrunners for the Rule 144A and Regulation S deal.

Elementia is a Mexico City-based manufacturer and distributor of copper, aluminum, fiber cement, concrete polyethylene and styrene products for the industrial, construction and infrastructure sectors in Mexico, the United States and Latin America.

Gruma plans roadshow

Mexico’s Gruma SA de CV will kick off a roadshow on Nov. 17 for a possible issue of notes, a market source said.

Goldman Sachs and Santander are the bookrunners for the Rule 144A and Regulation S deal.

The roadshow will begin in London and travel to New York before concluding on Nov. 19 in Boston.

Gruma, based in Monterrey, Mexico, is involved in the production, marketing, distribution, and sale of corn flour, packaged tortillas and wheat flour.

Alibaba plans offering

China’s Alibaba Group Holding Ltd. is looking to issue dollar-denominated notes, according to a company announcement.

The proceeds from the Rule 144A and Regulation S deal will be used primarily for refinancing the company’s existing credit facilities.

Alibaba is an e-commerce group based in Hangzhou, China, and best known for buying back a stake from Yahoo!.

Wanhua Chemical prices notes

On Wednesday, China’s Wanhua Chemical Group Co. Ltd. priced RMB 1 billion 4½% notes due Nov. 19, 2017, a market source said.

HSBC and JPMorgan were the bookrunners for the deal.

Other details were not immediately available on Thursday.

Wanhua is a Yantai-based chemical company.

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