Busy trading, issuance day ahead of holidays; Codelco, Russia's HCFB, Isbank do deals

By Christine Van Dusen

Atlanta, Oct. 10 - Corporacion Nacional del Cobre de Chile (Codelco), Russia's Home Credit & Finance Bank (HCFB), Hungarian Development Bank, Turkey's Turkiye Is Bankasi AS (Isbank) and India's Canara Bank on Thursday printed bonds during a busy session ahead of next week's Columbus Day and Eid holidays.

"With stock futures bouncing nicely this, in turn, has seen the 10-year U.S. Treasury move out of its 10-day range to close at 2.715%," a London-based trader said. "For the most part, this meant spread tightening."

Indeed, the Markit iTraxx SovX CEEME ex-EU index spread on Thursday opened at 389 basis points over Treasuries, 9 bps tighter than on Wednesday.

"Another fairly active session ahead of the much quieter week expected next week with the Eid holidays upon us," the trader said. "Recent new issues were slightly lower in cash price. However, spreads were holding OK."

He pointed to the new issue of 3¼% notes due 2018 that Al Khalij Commercial Bank priced at 99.575 on Wednesday. The notes traded between 99.55 and 99.65 for most of the session.

The new notes from the Emirate of Ras al Khaimah - $500 million 3.297% notes due in 2018 that priced at par to yield mid-swaps plus 175 bps - traded Thursday at 100 3/8 after Wednesday's 100¼ bid, 100.40 offered.

Looking to Latin America, more credits traded on Thursday, mostly among the institutional account base, a New York-based trader said.

"We grinded higher on most credits again today, and spreads also performed," he said. "Peruvian corporates and banks were once again better bid."

Bonds from Colombia inched higher, he said.

Meanwhile, Kazakhstan's JSC Kaspi Bank and China Construction Bank Corp. set roadshows for upcoming bond issues.

Middle East in focus

In other trading, demand was seen for Saudi Arabia-based Saudi Basic Industries Corp.'s (Sabic) $1 billion 2 5/8% five-year notes that priced at 99.449. On Thursday the notes were spotted near 99 after Wednesday's levels of 99.06 bid, 99.31 offered.

"Perpetuals are holding in very well," the London trader said. "Saw demand for Abu Dhabi Commercial Bank paper through most of the session, and also saw some nibbling on Emaar Properties."

Codelco issues bonds

In its new deal, Chilean copper mining company Codelco priced $950 million 5 5/8% notes due 2043 at 97.873 to yield Treasuries plus 200 bps, the New York trader said.

"Positive movements on debt talks have added an increased comfort level, with new issues once again coming alive," he said.

The notes were talked at a spread in the Treasuries plus 205 bps area.

HSBC, BofA Merrill Lynch and Mitsubishi UFJ Securities were the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used to finance capital expenditures, to cancel short-term indebtedness and for general corporate purposes.

"The new Codelco 2043s have tightened about six from issue," he said. "Codelco spreads held OK with the added supply. We're seeing slight widening."

HCFB prices notes

In its new deal, Russian lender Home Credit & Finance Bank priced $200 million 10½% notes due 2021 at par to yield 10½%, or Treasuries plus 903 bps, a market source said.

Citigroup, Sberbank and UBS were the bookrunners for the Rule 144A and Regulation S deal.

Hungarian bank sells bonds

Hungarian Development Bank priced $750 million 6¼% notes due 2020 at 99.481 to yield mid-swaps plus 424.1 bps, a market source said.

The notes were talked at a spread in the 440 bps area.

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

Issuance from Isbank

Turkey's Isbank priced $500 million 5½% notes due 2019 at 99.467 to yield mid-swaps plus 385 bps, a market source said.

The Istanbul-based lender set initial talk in the mid-swaps plus 400 bps to 410 bps area.

BNP Paribas, Commerzbank, JPMorgan, Morgan Stanley and Standard Chartered Bank were the bookrunners for the Rule 144A and Regulation S deal.

Greenland prints issue

China-based real estate developer Greenland Holding Group Co. Ltd. priced $700 million 4¾% notes due 2018 at 99.665 to yield 4 7/8%, a market source said.

The notes priced in line with talk, set at 4 7/8%.

HSBC, JPMorgan, Morgan Stanley, Bank of China International, Deutsche Bank, Citigroup and Goldman Sachs were the bookrunners for the Regulation S deal.

The proceeds will be used to refinance existing debt - including the company's $200 million 13½% notes due 2016 - and to finance property projects and for general corporate purposes.

New deal from Canara

India-based lender Canara Bank priced $500 million 5¼% notes due 2018 at 99.77 to yield 5.303%, or Treasuries plus 385 bps, a market source said.

The notes were talked at a spread of Treasuries plus 385 bps to 390 bps.

BofA Merrill Lynch, Barclays, BNP Paribas, Citigroup, Credit Agricole, HSBC and JPMorgan were the bookrunners for the Regulation S-registered issue of notes.

Chinese insurer launches notes

China Taiping New Horizon Ltd. launched a $400 million issue of 10-year notes at 6%, a market source said.

Credit Suisse, JPMorgan, Agricultural Bank of China, Bank of China, China Construction Bank International, CICC and Taiping Securities are the bookrunners for the Regulation S deal.

The notes are expected to price on Thursday.

The issuer is a wholly owned subsidiary of China Taiping Insurance Holdings Co. Ltd., an insurance conglomerate based in Hong Kong.

Roadshow for Kaspi Bank

Kazakhstan-based Kaspi Bank will set out on Oct. 14 for a roadshow to market dollar-denominated notes, a market source said.

JPMorgan and VTB Capital are the joint bookrunners for the Rule 144A and Regulation S transaction. Resmi FIH JSC is the local arranger.

The marketing trip will take place in the United States, the United Kingdom, Switzerland and Kazakhstan.

Chinese bank sets roadshow

China Construction Bank has mandated ANZ, CBA, HSBC and Goldman Sachs to arrange a roadshow, a market source said.

The investor meetings will begin on Oct. 16.

No other details were immediately available on Thursday.

Biosev postpones deal

Brazil-based Biosev SA has postponed its $300 million issue of seven-year notes (B1//BB-) due to market conditions, a market source said.

BNP Paribas, Bradesco BBI and Citigroup were the active bookrunners for the Rule 144A and Regulation S deal. BB Securities, HSBC and Itau SSA were the passive bookrunners.

The proceeds were to be used to repay existing borrowings and financings.

Biosev is the sugar cane unit of commodities giant Louis Dreyfus Holding BV.

Marco Polo Marine issues

On Wednesday, Singapore's Marco Polo Marine Ltd. priced S$50 million 5¾% notes due 2016 at par to yield 5¾%, a market source said.

DBS Bank and United Overseas Bank were the bookrunners for the Regulation S deal.

The Singapore-based marine logistic group provides ship chartering, ship building, and conversion, repair and maintenance services.

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