B Communications, Agile Property, Beijing Capital, Nostrum, African Bank tap primary

By Christine Van Dusen

Atlanta, Feb. 10 - Israel-based B Communications Ltd., China's Agile Property Holdings Ltd., China's Beijing Capital Land Ltd., Nostrum Oil & Gas Finance and South Africa's African Bank Ltd. sold notes on Monday amid light but balanced flows for emerging markets assets.

"Lackluster session, however the market remains technical and fairly well supported," a London-based trader said, noting it was "a slow day, really."

Most emerging markets bonds tightened during the session, a London-based analyst said.

"Markets have generally reacted well to Friday's non-farm payrolls disappointment," she said.

But bonds from Turkey were weaker on Monday in light of Standard & Poor's placing the sovereign on outlook negative.

"Long-end sovereign paper is off a quarter-point, and corporates are under pressure," she said.

Notes from Russia, meanwhile, were stronger on Monday morning, she said.

Buyers were seen for high-yielding names from the Middle East, including Abu Dhabi and Qatar, the trader said.

Dubai's DP World saw its 2017s trade down in the morning before seeing better bids in the afternoon, he said.

"Perpetuals are a mixed bag and a bit more balanced, with buyers nibbling."

Looking to Latin America, most bonds finished Monday lower and wider amid lighter volumes and balanced activity, a New York-based trader said.

"Venezuela and PDVSA SA bonds moved up early, building on Friday afternoon's rally, but gave all of that back into the close," he said.

Venezuela's 2027s, for example, closed at 65.75 after a high trade of 69.

Thin volumes were seen for Argentina, he said.

Middle East in focus

Investors took small bites of bonds from the United Arab Emirates' Global Education Management Systems Ltd. and Dubai's Majid al-Futtaim Holdings LCC (MAF), he said.

"More two-way on Emirates Islamic Bank and Abu Dhabi Islamic Bank," he said.

He was keeping an eye on Dubai Investments Park Development Co. The subsidiary of Dubai Investments PJSC is on a roadshow for a $300 million offering of five-year Islamic bonds.

Al Hilal Bank, Citigroup, Dubai Islamic Bank and Emirates NBD are the bookrunners for the Regulation S sukuk.

"This is the second Gulf region deal of the year," he said. "It will be a sukuk, and there are no other outstanding bond issues for the name, so it already ticks a few boxes."

Lebanon tightens

Lebanon also received some attention on Monday, he said.

"Lebanon has been ticking along nicely in recent weeks, with a pick-up in interest and activity," he said. "Spreads are, over the week, 10 basis points tighter."

Meanwhile, Bahrain Telecommunications Co. bonds widened and buyers were noted for International Petroleum Investment Co. and National Bank of Abu Dhabi, he said.

African bonds eyed

From Africa, Gabon's 2024 dollar notes saw some buyers at 103.5 bid, 104 offered, a trader said.

Ghana, meanwhile, had a "rough start," he said.

And Zambia's 2022s attracted some investor interest at 83.50 bid, 84.50 offered, he said.

Israel corporate issues bonds

In its new deal, B Communications priced an upsized $800 million issue of seven-year senior secured notes at par to yield 7 3/8% on Monday, according to a press release from the company.

The yield printed at the tight end of yield talk in the 7½% area for the deal, upsized from $775 million.

In a restructuring, the telecommunications company withdrew a proposed euro-denominated carve-out tranche.

JPMorgan, Citigroup, HSBC and Discount Underwriting and Issuing Ltd. were the joint bookrunners.

The proceeds will be used to repay all amounts outstanding under the loans it incurred to acquire its controlling interest in Bezeq - The Israel Telecommunications Corp. Ltd. and to deposit funds into a debt service account.

Agile Property sells notes

In its new deal, Hong Kong-based land developer Agile Property sold $500 million 8 3/8% five-year notes at 99.499 to yield 8½%, a market source said.

HSBC, Standard Chartered Bank, Agricultural Bank of China, ABC International and ICBC Asia were the bookrunners for the deal.

Nostrum prints bonds

Amsterdam-based Nostrum Oil & Gas Finance - a subsidiary of Kazakhstan's Nostrum Oil & Gas LP - sold $400 million five-year notes at par to yield 6 3/8%, a market source said.

Citigroup, Halyk Finance, ING, Sberbank CIB and VTB Capital were the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used for general corporate purposes, including the potential refinancing of debt, funding capital expenditures and the expansion of oil and gas reserves.

Issuance from Beijing Capital Land

China-based property developer Beijing Capital Land priced RMB 2.25 billion of three- and five-year notes (Ba3//BB+), a market source said.

The RMB 2 billion notes due 2017 priced at par to yield 5¾%.

The RMB 250 million 6 7/8% notes due 2019 also priced at par.

African Bank does deal

South Africa's African Bank sold CHF 165 million notes due Aug. 28, 2018 (Baa3) at par to yield 5%, a market source said.

Credit Suisse and UBS were the bookrunners for the deal.

African Bank is a Johannesburg-based lender.

Malaysian bank launches issue

Export-Import Bank of Malaysia launched a $300 million five-year sukuk at Treasuries plus 140 bps, a market source said.

BNP Paribas, CIMB, HSBC and Maybank are the bookrunners for the Regulation S deal.

The notes include a change-of-control put at 100%.

Slovenia gives guidance

Slovenia set talk for its upcoming issue of up to $3 billion of notes due in five and 10 years, a market source said.

Both tranches were talked at Treasuries plus 300 bps to 312.5 bps.

In January the sovereign mandated Barclays, Goldman Sachs and JPMorgan as the bookrunners for the Rule 144A and Regulation S transaction and a roadshow.

Paul A. Harris contributed to this article

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