BDO, PGNiG, Dolphin, Israel Electric, Henderson Land, CFE sell bonds; EM spreads tighten

By Christine Van Dusen

Atlanta, Feb. 7 - Philippines-based BDO Unibank Inc., Poland's Polskie Gornictwo Naftowe i Gazownictwo SA (PGNiG), Abu Dhabi's Dolphin Energy Ltd. LLC, the Israel Electric Corp. Ltd., China's Henderson Land MTN Ltd. and Mexico's Comision Federal de Electricidad (CFE) sold notes on Tuesday as investors awaited the outcome of a restructuring deal for Greece.

Still, spreads tightened, with the JPMorgan Emerging Markets Bond Index Global spread narrowing by 8 basis points to Treasuries plus 382 bps.

"Markets continue to debate whether news from Greece should be treated as a signal of contagion in markets or be downplayed altogether," according to a report from Barclays Capital Markets. "At this stage of the risk rally, we believe that selectivity and prudence are warranted."

In trading, Abu Dhabi's 2019s saw a low print of 121.25, then moved up to 121.375 and 121.50, a trader said.

"It is now 121.75 bid, 122 offered," he said at midday. "That's tighter by 5 bps."

International Petroleum Investment Co.'s 2020s repriced lower, he said. They were quoted at 100.50 bid, 101 offered, or about 12 bps wider.

"It's a mixed bag for IPIC, with some clear bouts of intraday selling pressure," he said. "Once again, though, the 2015s and 2016s trade and hold in very well. It doesn't feel like there are many bonds around there."

Meanwhile, Bahrain bonds were well bid.

"I have never been asked by so many random brokers and accounts than I was today on Bahrain's 2018s," he said. "Someone, somewhere, wanted some paper today."

And Dubai, as well as Dubai Water and Electricity Authority, were rock solid again.

"We got back involved with our favorite Dar Al-Arkan's 2015s today with two-way retail between 95.5 and 97," he said. "That bond is, once again, in pole position for bond of the week."

BDO, PGNiG print notes

Philippines-based lender BDO Unibank priced a $300 million issue of 4½% notes due Feb. 16, 2017 at 99.448 to yield 4 5/8%, a market source said.

The notes priced in line with talk, set at the 4 5/8% area.

UBS was the bookrunner for the Regulation S deal.

Proceeds will be used for general banking and relending purposes.

And Poland-based oil and natural gas company PGNiG priced a €500 million issue of 4% notes due Feb. 14, 2017 at 99.565 to yield mid-swaps plus 250 bps, a market source said.

The notes priced at the low end of talk, set at mid-swaps plus 250 bps to 260 bps.

BNP Paribas, Societe Generale and Unicredit were the bookrunners for the deal.

Dolphin Energy does deal

Abu Dhabi-based gas company Dolphin Energy priced a $1 billion issue of notes due Dec. 15, 2021 at par to yield 5½%, a market source said.

The notes priced at the low end of talk, set at 5½% to 5 5/8%.

"The order book has exploded to just under $10 billion," a trader said.

RBS, BNP Paribas, Abu Dhabi Commercial Bank, Mitsubishi UFJ and Societe Generale were the bookrunners for the Rule 144A and Regulation S deal.

"The highlight of the day was undoubtedly the return of Dolphin Energy to the capital markets," he said. "Very decent size traded in the existing Dolphin 2019s this morning, the majority of them at 106.625, 75 cents tighter than the previous close."

That bond closed at 107.12 bid, 107.37 offered.

Henderson Land, CFE price

China's Henderson Land MTN priced a $400 million issue of 4¾% senior notes due Feb. 14, 2017 at 99.215 to yield 4.929%, or Treasuries plus 415 bps, a market source said.

The notes priced in line with talk, set at the Treasuries plus 420 bps area.

Deutsche Bank, HSBC, JPMorgan, Morgan Stanley and Standard Chartered Bank were the bookrunners for the Regulation S deal.

Proceeds will be used for general corporate purposes.

The notes are guaranteed by Henderson Land Development Co. Ltd., a Hong Kong-based property company.

And Mexico-based electric company CFE priced a $750 million issue of 5¾% notes due Feb. 14, 2042 at 98.33 to yield 5.869%, Treasuries plus 275 bps, a market source said.

The notes matched price talk, set at Treasuries plus 275 bps.

BBVA, BNP Paribas and Citigroup were the bookrunners for the Rule 144A and Regulation S deal.

Israel Electric taps market

Israel Electric, a publicly controlled utility, priced a $500 million issue of 6.7% notes due Feb. 10, 2017 at par to yield 6.7%, a market source said.

The notes priced in line with talk, set at the 6¾% area.

Barclays Capital and UBS were the bookrunners for the Rule 144A and Regulation S deal.

This followed the Monday pricing of Brazil-based lender Banco Santander (Brasil) SA's $800 million of 4 5/8% notes due Feb. 13, 2017. The notes came to the market at 99.414 to yield Treasuries plus 400 bps, a market source said.

The notes were talked in the Treasuries plus 415 bps area.

Bank of America Merrill Lynch, BNP Paribas, Santander and Standard Chartered were the bookrunners for the Rule 144A and Regulation S deal.

Proceeds will be used for general corporate purposes.

Petrobras deal size eyed

The recent issue of $7 billion notes due 2015, 2017, 2021 and 2041 from Brazil's Petrobras International Finance Co. - a unit of energy company Petroleo Brasileiro SA (Petrobras) - attracted about $25 billion from more than 1,600 orders from more than 700 investors, according to a company announcement.

The deal was the largest-ever Brazilian international bond offering with some of the lowest yields seen from a Brazilian company, Petrobras said.

The issue included $1.25 billion 2 7/8% notes due 2015 that priced at 99.499 to yield 3.051%, or Treasuries plus 275 bps. The second tranche totaled $1.75 billion 3½% notes due 2017 that priced at 99.419 to yield 3.628%, or Treasuries plus 290 bps.

The deal also included a $2.75 billion add-on to the company's existing 5 3/8% notes due Jan. 27, 2021, which priced at 104.181 to yield 4.796%, or Treasuries plus 295 bps. And the last tranche - a $1.25 billion add-on to the company's 6¾% notes due Jan. 27, 2041 - priced at 112.208 to yield 5.938%, or Treasuries plus 295 bps.

BB Securities, Citigroup, Itau BBA, JPMorgan, Morgan Stanley and Santander were the bookrunners for the Securities and Exchange Commission-registered deal.

Nan Fung oversubscribed

The final book for China-based property developer Nan Fung International Holdings' $250 million add-on to its 5¼% notes due 2017 was $2 billion from 90 investors, a market source said.

The notes priced at 100.38 to yield 5.161%, or Treasuries plus 440 bps, via HSBC, JPMorgan and Goldman Sachs in a Regulation S deal.

About 94% of the orders came from Asia and 6% from Europe. Funds accounted for 33%, banks 31%, private banks 23% and insurance 13%.

The original issue totaled $350 million and priced on Jan. 16 at 99.376 to yield Treasuries plus 460 bps.

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