New Egypt notes trade ‘very well,’ Bahrain Mumtalakat talks sukuk pricing; CPI Group joins calendar

By Rebecca Melvin

New York, Feb. 20 – The Arab Republic of Egypt’s newly priced $4 billion of senior unsecured notes in three tranches traded very well upon release for secondary market dealings on Wednesday, according to market sources.

“All traded very, very strongly, between 15 basis points to 30 bps tighter,” a London-based market source said.

A second source said the notes all traded “very well,” and put the $750 million 6.2% five-year note at 100.87 bid, 101.12 offered.

The $1.75 billion of 7.6% 10-year notes were seen at 100.81 bid, 101.06 offered.

And the $1.5 billion 8.7% 30-year notes were quoted at 101.60 bid, 101.85 offered.

The Egypt issuance saw record demand, with orders reaching $21.5 billion before the book was closed. Thirty-seven percent of investors were from North America, 46% were from Europe, and the rest from North Africa, the Middle East and Asia, according to the Finance Ministry.

Also in the Middle East and Africa region, Bahrain Mumtalakat Holding Co. BSC was talking its planned dollar-denominated benchmark of five-year Islamic bonds, or sukuk, at the conclusion of its roadshow. Pricing was set at 5 5/8%, according to a syndicate source, which was the tight end of final guidance of 5¾%, plus or minus 1/8%. That was tightened from early guidance of 6% area and initial price talk of 6¼% area.

BNP Paribas, Citigroup, HSBC, National Bank of Bahrain and Standard Chartered are joint bookrunners for the deal.

Bahrain Mumtalakat is a real estate company based in Bahrain.

In addition, Union National Bank PJSC announced that it is soliciting consents from holders to amend its $500 million 4% bonds due 2023, $300 million floating-rate bonds due 2022 and $600 million 2¾% bonds due 2021.

The consent solicitation is in connection with Abu Dhabi Commercial Bank PJSC’s planned acquisition of UNB.

Elsewhere, CPI Property Group, of the Central & Eastern Europe region announced its plans to price a U.S. dollar-denominated note offering.

The property investments company has selected Barclays, Deutsche Bank, HSBC and JPMorgan to arrange roadshow meetings in Switzerland, Asia and London for the Regulation S deal. Meetings will wrap up on Feb. 27.

Meanwhile Republic of Cyprus was heard to have priced €1 billion of 15-year notes, but final pricing details were not able to be obtained by Prospect News’ deadline.

Citigroup, Goldman Sachs and HSBC are joint lead managers for the Regulation S deal.

In the broader markets, crude oil prices edged up but emerging markets debt remained little changed overall.

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