SECO, Exim India, Croatia, DTEK join issuance parade; spreads widen; ADIB notes trade up

By Christine Van Dusen

Atlanta, March 26 - Three Indian companies - Export Import Bank of India, Suzlon Energy Ltd. and Bharti Airtel Ltd. - were among the many issuers to bring new deals to the market on Tuesday.

Also on that list were Saudi Electricity Co. (SECO), Singapore's Keppel Corp. Ltd., Indonesia's PT Tower Bersama Group, Croatia, Beijing Capital Land Ltd., Ukraine's Donbass Fuel & Energy (DTEK) and Sociedad Quimica y Minera de Chile.

"We have seen a flurry of new issues," a London-based analyst said.

This was true even as the markets were still recovering from Monday's late-day beating, suffering after the E.U. Chair said that the proposed Cyprus solution - allowing large deposits to absorb losses - could be a good model for preserving other troubled banking systems.

He later clarified his comments to say that Cyprus is a specific case.

The Markit iTraxx SovX CEEMEA ex-EU index widened 4 basis points on Tuesday to Treasuries plus 207.5 bps. The corporate index also widened, moving out 3 bps to 240 bps over Treasuries.

"Exceedingly busy day," a London-based trader said.

In trading, recent perpetual issues received some attention, with Abu Dhabi Islamic Bank's $1 billion issue of 6 3/8% perpetual Islamic bonds that priced at par trading at 104½ bid, 105 offered.

Abu Dhabi Islamic Bank, HSBC, Morgan Stanley, National Bank of Abu Dhabi and Standard Chartered Bank were the bookrunners for the Regulation S-only sukuk.

And the 6¼% perpetual notes from Dubai Islamic Bank PJSC that priced at par traded Tuesday at 100.15 bid, 100.45 offered.

Dubai Islamic Bank, Emirates NBD Capital, HSBC, National Bank of Abu Dhabi and Standard Chartered Bank were the bookrunners for the Regulation S sukuk.

SECO sells notes

In its new deal, SECO priced a $2 billion two-tranche issue of notes due 2023 and 2043, with both tranches coming to the market at par, according to a source close to the deal.

The deal included $1 billion 3.437% notes due April 8, 2023 that priced at par to yield 3.437%, or Treasuries plus 155 bps.

The notes priced tighter than talk, set at the Treasuries plus 175 bps area.

The second $1 billion tranche - 5.06% notes due April 8, 2043 - priced at par to yield 5.06%, or Treasuries plus 190 bps.

The notes priced tighter than talk, set at the Treasuries plus 210 bps area.

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

"SECO makes a decent return to the markets," the London trader said. "Obviously there are eight sellers for every two buyers here, but I suspect there may be some local topping-up of allocations in the morning."

Keppel, Exim India price bonds

Tuesday also saw Singapore-based infrastructure and investment company Keppel - via wholly owned subsidiary Keppel GMTN Pte. Ltd. - sell $200 million floating-rate notes at par to yield Libor plus 89 bps.

Mizuho Securities Asia Ltd. was the bookrunner for the Regulation S deal.

The proceeds will be used for general corporate purposes, to fund investments and for working capital.

And Export Import Bank of India sold A$200 million 5.76% notes due April 5, 2018 at par to yield 5.76%, or mid-swaps plus 210 bps, a market source said.

ANZ and Deutsche Bank were the bookrunners for the deal.

Suzlon prints notes

In another new deal from India, wind power company Suzlon Energy sold $647 million notes at par to yield 5%, or Treasuries plus 419 bps.

The notes - issued by special-purpose vehicle AE-Rotor Holding BV - carry a quarterly coupon of 4.969%.

JPMorgan was the bookrunner for the Regulation S-only deal.

Bharti Airtel does deal

And Indian mobile telecommunications company Bharti Airtel priced $500 million 5 1/8% notes due March 11, 2023 at 100.625 to yield 5.044%, according to a company announcement.

Barclays, BNP Paribas, Citigroup, Deutsche Bank, HSBC, Standard Chartered Bank and UBS were the bookrunners for the Rule 144A and Regulation S deal.

The original $1 billion issue priced earlier in March at par to yield Treasuries plus 324 bps.

The proceeds were used to repay and refinance existing foreign currency indebtedness and for general corporate purposes.

Tower Bersama new notes

Indonesia's Tower Bersama Group - through TBG Global Pte. Ltd. - priced a $300 million issue of 4 5/8% notes due April 3, 2018 at par to yield 4 5/8%, a market source said.

The notes priced at the tight end of talk, set at 4 5/8% to 4¾%.

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

Croatia sells bonds

And Croatia sold $1.5 billion 5½% notes due April 4, 2023 at 99.054 to yield 5 5/8%, or Treasuries plus 371 bps.

BofA Merrill Lynch, Deutsche Bank, Goldman Sachs and JPMorgan were the bookrunners for the Regulation S deal.

Croatia also is planning a benchmark-sized issue of dollar-denominated fixed-rate notes due October 2023 through the same bookrunners, according to a stabilization notice.

Beijing Capital, DTEK deals

In yet another new deal, Beijing Capital Land sold $400 million 8 3/8% perpetual notes at par to yield 8 3/8%, or Treasuries plus 756.70 bps

HSBC and Credit Suisse were the bookrunners for the Regulation S notes, which are non-callable for five years.

And Ukraine's DTEK priced $600 million 7 7/8% notes due April 4, 2018 at 98.989 to yield mid-swaps plus 713 bps.

Deutsche Bank, ING, JPMorgan, Sberbank, Unicredit and VTB Capital were the bookrunners for the Rule 144A and Regulation S deal.

Chilean chemical company deal

Chemical company Sociedad Quimica y Minera de Chile sold $300 million 3 5/8% notes due April 3, 2023 at 99.246 to yield Treasuries plus 180 bps, following talk in the very low 200 bps area.

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

Greentown sets talk

Property developer Greentown China Holdings Ltd. set talk at 102.50 for an increase of its existing $400 million 8½% notes due February 2018, a market source said.

The original $400 million issue priced at par to yield 8½%.

Deutsche Bank, Bank of China, Goldman Sachs, HSBC, ICBC (Asia), Standard Chartered Bank and UBS are the bookrunners for the Regulation S offering.

The proceeds will be used to refinance debt, for capital expenditures and for general corporate purposes.

Crediamigo plans notes

Mexico's Prestaciones Finmart SAPI de CV (Crediamigo) is planning a Ps. 750 million issue of Mexican peso-denominated notes due in three years, a market source said.

Espirito Santo Investment Bank is the bookrunner for the Rule 144A and Regulation S deal, which will be marketed during an upcoming roadshow.

Payments will be made in dollars.

Crediamigo is a consumer finance company based in Mexico City.

Ukreximbank gives guidance

The State Export-Import Bank of Ukraine (Ukreximbank) set price talk at 8 3/8% for a $100 million increase of its 8¾% notes due Jan. 22, 2018 via Credit Suisse and Morgan Stanley in a Regulation S deal.

The outstanding size is $500 million.

And Polish Television Holding BV has postponed its two-tranche offering of euro-denominated notes due in seven years as a result of the current market conditions, a market source said.

The first tranche, to be issued by TVN Finance, was expected to total €485 million. The second tranche was to be issued by PTH and total €330 million.

JPMorgan, Nomura Securities and BNP Paribas were the bookrunners for the deal.

Emirates NBD suffers

The recent $750 million issue of 4 7/8% notes due 2023 from Dubai's Emirates NBD PJSC that priced at par opened Tuesday at 99.40 bid, par offered.

Later in the European session, the notes moved to 99.85 offered.

"Trades poorly," a trader said.

By the afternoon, the notes were seen at 99¼ bid, 99¾ offered.

"Not much done on yesterday's Emirates NBD 2023s," he said. "It was hit down to 991/2, where it stabilized and actually saw good two-way around those levels. Interestingly enough, we are at 5%, which is arguably where they should have priced it in the first place."

Deal oversubscribed

The Emirates NBD deal drew more than $2.6 billion from more than 160 orders, a market source said.

About 47% of the orders came from the Middle East and North Africa, 28% from Asia and 25% from Europe. Private banks picked up 37%, fund managers 30%, banks 29% and corporates and insurance 4%.

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

BankMuscat 'treading water'

Oman-based BankMuscat's recent $500 million issue of 2½% notes due 2018 that priced at 99.302 opened Tuesday at 99.30 bid, 99.45 offered.

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

"The recent Bank Muscat is treading water," a trader said.

TMK offers premium

The new issue of $500 million notes due in seven years from steel pipe manufacturer OAO TMK offered a modest premium over comparable credits, the London-based analyst said.

"The bond will be used to refinance existing debt," she said. "The 2018s are trading close to Evraz Group and at a 120 bps-premium over OAO Severstal, which is fair value, in our view."

The new TMK deal is expected to improve the company's liquidity and extend its debt maturity profile.

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

Emirates notes tick down

Dubai-based Emirates airline's recent issue of 3 7/8% amortizing Islamic bonds due 2023 that priced at 99.331 moved to 98.37 bid, 98.87 offered on Tuesday.

Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Citigroup, Dubai Islamic Bank PJSC, Emirates NBD Capital Limited and Standard Chartered Bank were the bookrunners for the Regulation S-only sukuk.

"The 2023 traded in mid- to low-98s, and the retail 2016s also came out in the low-105s," a trader said.

Middle East in focus

Bids were seen for such Middle Eastern names as "Qatar National Bank, National Bank of Abu Dhabi and Abu Dhabi Commercial Bank," a trader said.

"Qatar's long end is still supported here, having been heavy on the back end of last week," he said. "Traded two-way on Aldar Properties' 2014s a few times today within the 107.37 to 107.63 context. A cool 55 bps wider on the month on this one."

Arcelik in demand

The final book for Turkey-based household appliances manufacturer Arcelik AS' recent $500 million 5% notes due April 3, 2020 was $1.7 billion from 112 orders, a market source said.

The notes priced at 99.031 to yield 5 1/8% with BofA Merrill Lynch, JPMorgan and RBS in a Rule 144A and Regulation S deal.

About 68% of the orders came from the United States, 21% from the United Kingdom, 3% from France, 3% from Switzerland and 5% from others.

Fund managers accounted for 89%, pension and insurance 6%, bank and retail 4% and others 1%.

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