Emirates NBD, BCP, Dorsett sell notes; spreads tighten on Cyprus deal; SECO deal ahead

By Christine Van Dusen

Atlanta, March 25 -Dubai's Emirates NBD PJSC, Korea Exchange Bank, China State Construction International Holdings Ltd., China's Dorsett Hospitality International Ltd., Turkey's Arcelik AS Banco de Credito del Peru (BCP) and Colombia-focused Pacific Rubiales Energy Corp. were among the issuers to sell notes on a more upbeat Monday for emerging markets assets.

"A resolution was found for Cyprus in the early hours of this morning," a London-based analyst said. "Depositors under €100,000 will not be affected, although depositors above this level will suffer losses of up to 40%."

The market at first responded positively to this news, with the Markit iTraxx SovX CEEMEA ex-EU index moving Monday to Treasuries plus 203.5 basis points, 11 bps tighter than Friday. The corporate index - seen Friday at 245 bps over Treasuries - narrowed to Treasuries plus 237 bps.

"The resolution, announced on Sunday, removed some of the uncertainty and initially had markets in a risk-on mode," a New York-based trader said. "But that reversed at mid-morning as questions started to arise about implementation and other repercussions of this new deal."

Still, the analyst said, "the tone is generally better."

Buyers were noted for VimpelCom's 2023s and Sberbank's 2021s and 2022s. Russia's 2030s and VTB Bank's 2017s, 2020s and 2049s also saw demand.

Bonds from the Middle East and North Africa were "fairly active" on Monday, the analyst said.

"The secondary is steady so far," she said. "If anything it's a couple tighter with the move lower on US Treasury prices."

Some two-way activity was noted for the recent issue of notes from Oman's BankMuscat.

"Holding steady," a trader said.

The lender priced a $500 million issue of 2½% notes due March 26, 2018 at 99.302 to yield mid-swaps plus 170 bps.

Citigroup, Credit Agricole CIB, Deutsche Bank, HSBC, National Bank of Abu Dhabi and Standard Chartered Bank were the bookrunners for the Regulation S deal.

ADCB active

The recent 2023 notes from Abu Dhabi Commercial Bank PJSC were active on Monday, closing at 102 bid, 102½ offered.

The $750 million issue of 4½% notes due 2023 priced at 99.127 to yield 4.61%, or mid-swaps plus 265 bps.

"Regional buyers still around," he said. "Qatar's long end caught a bid today after some games late last week."

The notes last week hit a low of 117¾ and closed at 119¼ bid on Monday.

Ukraine trades up

From Ukraine, sovereigns have moved higher, but recent corporate issuer MHP SA has received the most attention, said Svitlana Rusakova of Dragon Capital.

The Kiev-based poultry producer priced $750 million 8¼% notes due April 20, 2020 at par to yield 8¼%, or Treasuries plus 697 bps.

JPMorgan, Morgan Stanley and VTB Capital were the bookrunners for the Rule 144A and Regulation S deal.

"Some accounts were quick to hit the sell button, sending the bonds to 99 5/8 at one point," she said. "Still, selling did not prove overwhelming and the paper closed at 99 7/8."

UkrLandFarming quiet

Meanwhile, very little activity was noted for the recent issue of notes from Ukraine-based agricultural producer UkrLandFarming Plc.

The company sold $275 million 10 7/8% notes due 2018 at par via Citigroup, Deutsche Bank and Sberbank CIB in a Rule 144A and Regulation S deal.

"A 99¾ bid on the screens was not hit, but some bonds were said to trade at par," Rusakova said.

Venezuela notes tick higher

From Latin America, most bonds were quiet on Monday, though Venezuela's notes were up about 35 cents, a New York-based trader said.

"Argentina bonds underperform," he said. "Accounts were better sellers from the light activity we saw today."

In the primary market, Banco ABC Brasil printed R$250 million 8½% notes due March 28, 2016 at par to yield 8½%, a market source said.

Banco Bradesco, HSBC and Itau BBA were the bookrunners for the Rule 144A and Regulation S deal.

The notes, which include a change-of-control put at 101 in the event of a ratings downgrade, will be payable in dollars.

Pacific Rubiales prices bonds

Colombia-focused oil and gas exploration and production company Pacific Rubiales Energy priced $1 billion 5 1/8% notes due March 28, 2023 at par to yield 5 1/8%, or Treasuries plus 321.1 bps, a market source said.

BofA Merrill Lynch, Citigroup, Credit Suisse and Itau BBA were the bookrunners for the Rule 144A and Regulation S deal.

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

The final book was $5.7 billion from more than 330 accounts, with 77% of the orders from asset managers, 10% from insurance and pension funds, 8% from private banks, 3% from hedge funds and 2% from bank portfolios.

Emirates NBD does deal

In its new deal, Dubai-based financial services company Emirates NBD printed $750 million 4 7/8% notes due March 28, 2023 at par to yield 4 7/8%, or mid-swaps plus 389.8 bps after talk in the 5% area.

Citigroup, Emirates NBD Capital, HSBC, JPMorgan, Societe Generale CIB and Standard Chartered Bank were the bookrunners for the Regulation S deal.

The final book was about $2.8 billion.

"The bonds were freely offered below re-offer going into the London close," a London-based trader said. "Amazing, these new issues. For the most part you'd be better off waiting until they price and picking up bonds cheaper."

Arcelik, BCP print notes

Turkey-based household appliances manufacturer Arcelik sold $500 million 5% notes due April 3, 2023 at 99.031 to yield 5 1/8%, a market source said.

The notes were talked at 5 3/8% to 5½%.

BofA Merrill Lynch, JPMorgan and RBS were the bookrunners for the Rule 144A and Regulation S deal.

And Peru's BCP sold $350 million 4¼% notes due April 1, 2023 at 99.196 to yield 4.35%.

The notes were talked at a yield in the 4½% area.

Citigroup and JPMorgan were the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used for general corporate purposes.

Asian corporates issuance

Korea Exchange Bank printed $350 million 2% notes due April 2, 2018 at 99.49 to yield 2.108%, or Treasuries plus 130 bps following talk in the Treasuries plus 135 bps area.

BofA Merrill Lynch, BNP Paribas, Citigroup, HSBC, KEB Asia Finance and Hana Daetoo Securities were the bookrunners for the Regulation S deal.

And China State Construction International Holdings sold $500 million 3 1/8% notes due April 2, 2018 at 99.5423 to yield Treasuries plus 240 bps.

BofA Merrill Lynch, China International Capital Corp. Hong Kong Securities Ltd. and Deutsche Bank were the bookrunners for the Regulation S deal.

Dorsett sells bonds

Also from China, Dorsett Hospitality International sold RMB 859 million 6% notes due April 3, 2018 at par to yield 6%, a market source said.

Barclays Bank plc, Citic Securities Corporate Finance (HK) Ltd., Deutsche Bank AG, Hong Kong Branch and HSBC were the joint lead managers and bookrunners for the Regulation S deal.

The proceeds will be used for future acquisitions and expansion, as well as for general corporate purposes.

New notes from TMK

The day also saw Russia's TMK sell $500 million seven-year notes via Citigroup, Deutsche Bank and JPMorgan, a market source said.

The notes were talked at a yield of 6¾% to 6 7/8%.

No other details on the Rule 144A and Regulation S deal were immediately available on Monday.

TMK is a steel pipe manufacturer based in Moscow.

SECO sets talk

In other news, Saudi Electricity Co. has set talk for a two-tranche issue of dollar-denominated and benchmark-sized notes due in 10 and 30 years, a market source said.

The 10-year tranche was talked at the Treasuries plus 175 bps area.

The 30-year notes were talked at the Treasuries plus 210 bps area.

Deutsche Bank and HSBC are the bookrunners for the Rule 144A and Regulation S deal.

The utility company is based in Riyadh, Saudi Arabia.

"Let's see how SECO goes," the London trader said.

The book, as of Monday afternoon, was about $9 billion.

The 10-year notes closed up 50 cents in the gray market on Monday while the 30-year notes were up 75 cents.

Tower Bersama gives guidance

Indonesia's PT Tower Bersama Group gave guidance of 4 5/8% to 4¾% for its $300 million issue of five-year notes, a market source said.

ANZ, Citigroup, Credit Agricole, DBS Bank, Mitsubishi UFJ Securities, Morgan Stanley and UBS are the bookrunners for the Rule 144A and Regulation S deal.

No other details were immediately available on Monday.

Tower Bersama is a Jakarta-based telecommunications tower company.

Beijing Capital Land roadshow

Beijing Capital Land Ltd. is on a roadshow with HSBC and Credit Suisse for a Regulation S issue of dollar perpetual notes, a market source said.

The roadshow began Monday and will be held in Hong Kong and Singapore.

Beijing Capital Land is an integrated property owner.

21Vianet oversubscribed

The final book for China-based Internet data services provider 21Vianet Group's RMB 1 billion issue of 7 7/8% notes due March 22, 2016 was more than RMB 4.25 billion from 90 accounts, a market source said.

The notes priced at 99.803 via Barclays, Citic Securities, DBS Bank and Wing Lung Bank in a Regulation S deal.

The proceeds will be used for data center expansion and for general corporate purposes.

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