New issues from TAQA, ABC Financial Leasing; investors await Fed, Brexit vote; Wuxi advances deal

By Christine Van Dusen

Atlanta, June 14 – Abu Dhabi National Energy Co. (TAQA) and China’s Agricultural Bank of China Financial Leasing Co. Ltd. sold notes on a wider and lower Tuesday for emerging markets assets, as markets were hurt by the start of the Federal Reserve’s meeting and worries about the upcoming Brexit poll.

“Concerns among investors are increasing” ahead of the United Kingdom’s June 23 vote on whether to stay in the European Union, according to a report from Schildershoven Finance BV. “Britain’s leaving the union may trigger a substantial slowdown in global growth.”

In response, “EM credit finishes the session wider and lower but closes well off the weakest levels of the day,” a New York-based trader said.

Brazil’s five-year credit default swaps spreads finished the session at 358 basis points from 354 bps while Mexico’s closed at 181 bps from 174 bps.

“Cash prices drop as spread widening has the market adjusting levels lower with no support in the form of a United States Treasury rally today,” he said. “Lat-Am high-yield finishes mixed on the day.”

Argentina saw its Bonar 2024s stay at about 112 while its 2026s were mostly unchanged at 104.90. Venezuela’s 2027s were down at 43.50 from 43.75 and PDVSA’s 2017s closed at 66.75 from 67.75.

“Both Street and client volumes picked up today, with better sellers of Latin America credit, for the most part,” he said. “Most are looking to the Fed tomorrow as a non-event, but with global yields hitting all-time lows, markets will be closely watching the statement to determine if current yields are justified.”

TAQA prints bonds

On Tuesday, Abu Dhabi-based TAQA priced a $1 billion issue of notes due June 22, 2021 and 2026, an informed source said.

The $500 million 3 5/8% notes due 2021 priced at 99.66 to yield 3.70%.

The $500 million 4 3/8% notes due 2026 priced at 99.002 to yield 4 ½%.

BNP Paribas, Citigroup, First Gulf Bank, HSBC, National Bank of Abu Dhabi and Societe Generale were the bookrunners for the Rule 144A and Regulation S deal.

ABC Financial Leasing prices

In its new deal, China’s ABC Financial Leasing priced $500 million of 2 ½% notes due June 21, 2021 at 99.543 to yield Treasuries plus 145 basis points, a market source said.

The notes came at the tight end of talk for a spread in the 150 bps area.

ABC International, Agricultural Bank of China and CICC HK Securities were the joint global coordinators, bookrunners and lead managers. ANZ, DBS Bank and Wells Fargo Securities were also bookrunners for the Regulation S deal.

The proceeds will be used for working capital and for general corporate purposes.

Agricultural Bank of China is based in Beijing.

Wuxi on roadshow

China’s Wuxi Construction and Development Investment Co. Ltd. set out on Tuesday for a roadshow to market a dollar-denominated issue of notes (expected ratings: /BBB/BBB+), a market source said.

Standard Chartered Bank, JPMorgan and Wing Lung Bank are the joint global coordinators and – along with China Minsheng Banking, Shanghai Pudong Development Bank, HSBC and BOCOM International – the joint bookrunners and joint lead managers for the Regulation S deal.

Wuxi Construction is a Wuxi, China-based developer, operator, manager and builder of property.

© 2015 Prospect News.
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