Reliance, China Overseas price benchmark deals; Braskem, Dolphin Energy tap existing paper

By Paul A. Harris

Portland, Ore., Feb. 9 - The JPMorgan Emerging Markets Bond Index, EMBI Global, closed at a spread of 378 basis points bid on Thursday, 7 bps tighter on the day.

In a red hot primary market, India's Reliance Industries Ltd. and China Overseas priced benchmark deals while Brazil's Braskem SA and Abu Dhabi's Dolphin Energy Ltd. LLC tapped existing issues.

Reliance prices at the tight end

Reliance Industries priced a $1 billion issue of 5.4% 10-year notes (Baa2/BBB) at a 345 bps spread to Treasuries, at the tight end of price talk, which had been set in the 350 bps area.

Barclays Capital, Bank of America Merrill Lynch, Citigroup, HSBC and UBS were the bookrunners.

China Overseas taps market

China Overseas Finance (Cayman) IV Ltd. priced a $500 million issue of 4 7/8% five-year senior notes (Baa2/BBB) at a 410 bps spread to Treasuries.

The spread came at the tight end of the Treasuries plus 410 bps to 420 bps final guidance.

Deutsche Bank, HSBC, ICBC International and JPMorgan were the bookrunners.

Shui On prices non-rated deal

China's Shui On Development (Holding) Ltd. priced a $400 million issue of non-rated three-year notes at par to yield 9¾%.

The yield printed on top of price talk.

BNP Paribas, Deutsche Bank, Standard Chartered Bank and UBS were the bookrunners.

The Shanghai-based property developer plans to use the proceeds to fund capital expenditures related to its real estate operations and to acquire, develop or construct assets or to repay debt.

Polkomtel sells PIK

Also in the high yield space Poland's Polkomtel SA priced a $201 million issue of 14¼% 8.5-year PIK notes (Caa1/B-) at 95 to yield 14.89%.

The yield printed in line with the 14¾% to 15% yield talk.

Deutsche Bank, Credit Agricole CIB, Royal Bank of Scotland and SG CIB were the leads.

Proceeds will be used to repay the PIK bridge loan backing the $5.5 billion equivalent acquisition of Polkomtel by investor Zygmunt Solorz-Zak.

On Jan. 19 Polkomtel priced €920 million equivalent of eight-year senior notes (B1/B+/).

That deal included €542.5 million of 11¾% notes, which were priced at 96.268 to yield 12½%, and a $500 million tranche of 11 5/8% notes at 98.1 to yield 12%.

Dolphin, Braskem price taps

Abu Dhabi-based gas company Dolphin Energy priced a $300 million add-on to its 5% notes due Dec. 15, 2021 (A1/A+) at 101.25 to yield 5.336% on Thursday, according to market sources.

The reoffer price came rich to price talk set in the 101 area.

Joint bookrunner RBS will bill and deliver. BNP Paribas, Abu Dhabi Commercial Bank, Mitsubishi UFJ and Societe Generale were also joint bookrunners.

Meanwhile Braskem priced a $250 million add-on to its 7 3/8% perpetual senior notes at 100.375 to yield 7.345%.

The reoffer price came rich to price talk, which was set in the par area.

Deutsche Bank, HSBC, Banco Itau and BBA were the bookrunners.

Proceeds will be used to refinance debt.

Qatar National Bank mandate

Qatar National Bank SAQ (Aa3/A+/A+) mandated Barclays Capital, Citigroup, HSBC, QNB Capital and Standard Chartered Bank to set up investor meetings ahead of an anticipated benchmark-sized dollar-denominated offering of fixed-rate notes.

The meetings begin on Monday in London.

The Regulation S deal is subject to market conditions.

The notes will be issued under the bank's $7.5 billion euro medium-term notes program.

Qatar National Bank is the largest bank in Qatar with a majority stake held by the Government of Qatar via the Qatar Investment Authority.

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