Doha Bank shapes up at 262.5 bps over mid-swaps; Philippines' Atlas Mining offering eyed

By Aleesia Forni and Paul A. Harris

Columbus, Ohio, March 7 - Secondary levels firmed on Wednesday following the volatile Tuesday session, which saw the credit default swaps widen by 20 basis points from last Friday's tights, according to an emerging markets trader.

The restructuring of Greek debt appears to be gaining traction among investors, which drove the positive sentiment, the trader remarked.

In the primary market, Doha Bank's dollar-denominated offering was shaping up to be a five-year deal at 262.5 bps over mid-swaps.

And Philippines-based Atlas Consolidated Mining and Development Corp. announced it would do a dollar-denominated deal.

Doha Bank at premium

Doha Bank's dollar-denominated deal appeared to be coming sized at $500 million with a five-year tenor at a 262.5 bps spread to mid-swaps, market sources said.

That talk had tightened from early guidance of 287.5 bps.

At the 262.5 bps spread, the Doha Bank five-year deal would be 27.5 bps wide of the recently priced Qatar National Bank SAQ, which came at a 235 bps spread. The Qatar National Bank $1 billion issue of 3 3/8% five-year notes priced last week.

At mid-day London time on Wednesday, the order book for the Doha Bank deal stood at $1 billion, a source said.

The gray market for the Doha Bank paper was slightly positive at plus 30-cents bid, plus-35-cents offered, the source added.

Atlas Mining deal ahead

Also in the primary, Atlas Consolidated Mining and Development announced that its wholly owned subsidiary, Carmen Copper Corp., intends to issue five-year and five-day dollar-denominated fixed-rate notes.

BDO Capital & Investment Corp. and Credit Suisse Securities (Europe) Ltd. will be the joint bookrunners for the proposed Regulation S offering.

Proceeds will be used to refinance existing debt, to fund capital expenditures and for other general corporate purposes.

Mandaluyong, Philippines-based Carmen Copper engages in searching, exploring, mining and processing ores and mineral resources in the Philippines.

The appetite for Asian corporate paper was on display Tuesday when Indonesia's Berau Coal Energy Tbk. PT priced a $500 million issue of 7¼% five-year senior notes (B1) at par, at the tight end of the 7 3/8% price talk, which had been revised downward from initial talk of 7 7/8%.

The deal was a massive blowout, according to market sources.

A London-based trader said the order book was 20 times oversubscribed.

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