Doosan, Bumi Serpong Damai sell notes; Kaisa defaults; Envirotech, Sinopec line up deals

By Christine Van Dusen

Atlanta, April 20 – South Korea’s Doosan Heavy Industries & Construction Co. Ltd. and Indonesia’s PT Bumi Serpong Damai Tbk sold notes on a slightly weaker Monday for Asian bonds.

High-grade cash notes moved 3 basis points to 5 bps wider as investors continued to digest new issues, a London-based trader said.

“Selling subsided in the afternoon session and fast-money and real-money accounts stepped in, taking us back to close the day unchanged to 3 bps wider,” he said.

China-based Cnooc saw its 2024s trade to its wides, he said, while the new notes from Malaysia received solid support, with the 2025s trading up at 112 bps.

Investors were also keeping an eye on China-based Kaisa Group Holdings Ltd., which defaulted on its dollar debt after missing two payments, a trader said.

Kaisa’s 2017 bonds declined in response, the trader said, moving to 57¼ bid, 59¼ offered.

In deal-related news, market sources were whispering about a possible issue of dollar notes from Bangladesh, euro notes from Azerbaijan and dollar notes from Bharat Petroleum (BPCL).

Singapore’s United Envirotech Ltd. has increased the amount for its medium-term note program from $300 million to $500 million, a market source said.

China Petrochemical & Chemical Corp. (Sinopec Group) has mandated Citigroup, HSBC, Goldman Sachs, Bank of China and Deutsche Bank as joint global coordinators for a dollar- or euro-denominated issue of notes, a market source said.

© 2015 Prospect News.
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