Chinese property developers Logan, Yuzhou issue notes; oil prices hammer Russia, LatAm names

By Christine Van Dusen

Atlanta, Dec. 1 – China’s Logan Property Holdings Co. Ltd. and China’s Yuzhou Properties Co. Ltd. sold notes on Monday as the move in U.S. Treasuries sent spreads wider for most emerging markets assets.

“We start December with Russia under pressure once again,” a London-based analyst said. “Elsewhere the tone is firmer, but with the Treasury move, spreads are generally a little wider.”

New headlines about Ukraine’s conflict with Russia – this time accusing the latter sovereign’s troops of attacking the Donestk airport – certainly didn’t help Ukraine’s bonds. They entered the week lower, following one of the worst weeks in recent history, said Svitlana Rusakova of Dragon Capital.

Russia’s bonds also suffered, but mostly because leaders at the recent OPEC meeting agreed not to cut oil production, which sent Brent prices down, the analyst said.

“Russia’s 2030s are down a point,” he said. “Liquidity remains, overall, poor in the complex.”

The drop in oil prices also hit Latin American corporate bonds on Monday, a New York-based trader said.

Notes from Brazil’s Petroleo Brasileiro SA moved wider throughout the session by as much as 25 basis points, he said.

Brazil-based Vale SA also saw its bonds widen, but only about 8 bps on light flows.

Bonds from Odebrecht SA were better-offered.

Colombia’s Ecopetrol SA slipped amid solid volumes and lots of inquiries, the trader said, and Mexico’s Cemex SAB de CV moved down a point overall.

Looking to Turkey, bonds were well-bid on Monday morning as a result of the lower oil prices, he said.

“Already this morning we have seen interest in Turkey sovereign paper,” he said.

Akbank sets roadshow

Against this backdrop, Turkish lender Akbank TAS’ German branch set out on a roadshow to market a euro-denominated issue of notes, a market source said.

Societe Generale CIB and Unicredit are the bookrunners for the deal.

The roadshow started Monday and will travel to Germany, London and Switzerland before concluding on Thursday.

Logan Property sells notes

In its new deal, Shenzhen-based real estate developer Logan Property Holdings sold $250 million 9¾% notes due Dec. 8, 2017 at par to yield 9¾%, a market source said.

Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan and VTB Capital were the bookrunners for the deal.

Logan Property is a Shenzhen-based real estate development company.

Issuance from Yuzhou

Hong Kong-based property developer Yuzhou Properties priced $250 million 9% notes due Dec. 8, 2019 at par to yield 9%, a market source said.

BOC International, Credit Suisse, Haitong International, HSBC and Huatai Financial were the bookrunners for the deal.

Chinese developer plans notes

Chinese development company Zhuhai Da Heng Qin Investment Co. Ltd. has mandated CCB International, HSBC and Shanghai Pudong Development Bank as bookrunners for a roadshow starting Tuesday, a market source said.

A renminbi-denominated issue of Regulation S notes is expected to follow.

Philippines mandates leads

Philippines has mandated nine banks for an issue of dollar-denominated notes, a market source said.

Deutsche Bank, HSBC, Citigroup, Credit Suisse, Goldman Sachs, JPMorgan, Morgan Stanley, Societe Generale CIB and UBS are the bookrunners for the upcoming transaction.

Pakistan deal attracts orders

The final book for Pakistan’s new issue of $1 billion 6¾% sukuk due Dec. 3, 2019 – which priced last week at par to yield 6¾% – was about $2.3 billion from more than 160 investors, a market source said.

About 53% of the orders came from the Middle East, 24% from the United Kingdom, 12% from the United States, 6% from Asia and 5% from Europe.

Banks and private banks picked up 51%, fund managers 44% and insurers and pension funds 5%.

Citigroup, Deutsche Bank, Dubai Islamic Bank and Standard Chartered Bank were the bookrunners for the Rule 144A and Regulation S deal.

© 2015 Prospect News.
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