Deals from Indian Railway, Gazprom, Shui On Land, Wing Tai; EM gets busy; Ukraine eyed

By Christine Van Dusen

Atlanta, Feb. 19 - Indian Railway Finance Corp. Ltd., Russia-based OJSC Gazprom and two Chinese issuers - Shui On Land Ltd. and Wing Tai Properties Ltd. - printed notes on a busy Wednesday morning as Latin American assets stayed firm and bonds from the Middle East saw demand.

"Flurry of activity out of the gates this morning and generally buyers circling," a London-based trader said. "Still decent demand for Bahrain and Kuwait risk. Also saw some decent interest and inquiry on Dubai Electricity and Water Authority this morning."

Many bonds from Dubai received attention early Wednesday following news that the sovereign could roll over a $10 billion debt facility to a lower interest rate.

The recent issue of 4.291% notes due 2019 that Dubai Investments Park Development Co. priced at par to yield mid-swaps plus 265 basis points held at the 100.65 to 100.80 level, the trader said.

Perpetual bonds from the Middle East moved lower on Wednesday, he said.

"I must admit, I have not seen tremendous amounts of bids wanted here, but the Street seems happy ticking them lower," he said. "Spreads on balance are struggling a little in lower-beta Qatar and Abu Dhabi."

Activity slowed down somewhat by Wednesday afternoon, he said.

"Bit of a mixed bag, performance-wise," he said.

In deal-related news on Wednesday, China's Beijing Energy Investment Holding Co. set talk, China Aluminum International Engineering Corp. Ltd. (Chalco) continued a roadshow, Brazil's Banco Safra SA set a marketing trip and India's Bharat Petroleum Corp. Ltd. and Mexico's BBVA Bancomer mandated bookrunners.

Market sources also were whispering about a possible issue of notes coming from South Korea's LG Electronics Inc.

Trading mixed

In other trading on Wednesday, National Bank of Abu Dhabi and Qatar National Bank bonds remained popular, a trader said.

"Managed to print some Dolphin Energy 2019s in the past 24 hours," he said. "It's been a popular one in recent weeks."

And Ukraine remained in focus as violent protests continued.

"With Ukraine creating volatility yesterday and this morning, EM feels softer generally again," a London-based analyst said. "Russia and Turkey are both under pressure."

But bonds from Central and emerging Europe remained firm on Wednesday, she said.

Lat-Am stays firm

Latin American corporate bonds continued to enjoy a firm tone on Wednesday, a New York-based trader said, with many names moving higher.

Brazil's Braskem SA, for one, moved off its recent lows while Odebrecht SA's 2022s and 2025s were slightly higher. Odebrecht's 2042s, however, moved lower after the previous day's gains.

Spread-based credits held on to the 3 bps to 6 bps gains from Tuesday, he said.

And Peruvian mining company Minsur SA, which priced a $450 million issue of 6¼% notes due 2024 at 98.183 to yield 6½%, moved up to 1011/4.

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

Indian Railway does deal

Indian Railway Finance sold $500 million 3.917% notes due 2019 at par to yield 3.917%, or Treasuries plus 245 bps, a market source said.

ANZ, Barclays, Deutsche Bank and RBS were the bookrunners for the Regulation S deal.

The issuer is a subsidiary of New Delhi-based Indian Railways.

Issuance from Gazprom

Russia-based natural gas producer Gazprom sold €750 million 3.6% notes due 2021 at par to yield 3.6%, according to a company announcement.

Credit Agricole CIB, Gazprombank and JPMorgan were the bookrunners for the Regulation S-only deal.

The proceeds will be used to finance a loan and for general corporate purposes.

Shui On sells bonds

Shanghai property developer Shui On Land, through Shui On Development, printed RMB 2.5 billion 6 7/8% notes due 2017 at par to yield 6 7/8%, a market source said.

BNP Paribas, Deutsche Bank, JPMorgan, Standard Chartered Bank Hong Kong and UBS were the bookrunners for the Regulation S deal.

The proceeds will be used to repay indebtedness and to fund capital expenditures.

New deal from Wing Tai

China's Wing Tai Properties, through wholly owned subsidiary Wing Tai Properties (Finance) Ltd., sold S$100 million 4.7% notes due 2024 at par to yield 4.7%, a market source said.

DBS Bank was the bookrunner for the Regulation S deal.

Wing Tai Properties is a Hong Kong-based property developer.

Beijing Energy gives guidance

China's Beijing Energy Investment set talk in the Treasuries plus 220 bps area for its planned $300 million issue of notes due in three years (expected rating: A1), a market source said.

Agricultural Bank of China International, China Merchants Securities, Citigroup, Citic Securities International, Deutsche Bank and Essence International are the bookrunners for the deal.

The proceeds will be used for general corporate purposes.

Chalco on roadshow

Beijing-based metals manufacturer Chalco is on a roadshow for a possible issue of dollar-denominated and perpetual notes, a market source said.

Morgan Stanley is the global coordinator. Morgan Stanley and CLSA are joint bookrunners for the Regulation S deal.

The roadshow started Wednesday.

Bharat mandates banks

Bharat Petroleum has mandated BNP Paribas, Deutsche Bank, RBS and UBS as bookrunners for a Swiss franc-denominated issue of notes, a market source said.

A roadshow will begin Feb. 24.

Bharat Petroleum is an oil and gas company based in Mumbai.

Safra sets marketing trip

Brazil's Banco Safra will set out on Feb. 25 for a roadshow to market a Swiss franc-denominated issue of notes, a market source said.

UBS Investment Bank is the bookrunner for the Regulation S deal.

Banco Safra is a lender based in Sao Paulo.

Bancomer picks bookrunners

Mexico's Bancomer has mandated BBVA, Credit Suisse and Goldman Sachs to lead a roadshow, a market source said.

No other details were immediately available on Wednesday.

BBVA Bancomer is a Mexico City-based financial institution.

Chu Kong cancels plans

China's Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Ltd. has canceled plans for up to RMB 300 million notes due in three years, a market source said.

The welded steel pipe company held a roadshow at the end of January with DBS for the Regulation S offering.

The notes were talked at 11½%.

The proceeds were to be used for repaying or refinancing existing indebtedness and for general corporate purposes.

Sberbank 'mixed'

The new issue of $1 billion 5½% notes due 2024 that Russia's OAO Sberbank priced on Tuesday at par saw "a mixed reception from investors," a trader said.

"The deal is trading around reoffer, but we saw sellers first thing this morning," she said.

The notes were talked at a yield in the 5 5/8% area.

BofA Merrill Lynch, Credit Suisse, Deutsche Bank and Sberbank CIB were the bookrunners for the notes, issued by SB Capital SA.

Last week the Moscow-based lender postponed the deal due to market volatility.

RAB prices tap

Also on Tuesday, OJSC Russian Agricultural Bank priced a $500 million increase of its 5.1% notes due 2018 at 101.575 to yield 4.7%, or mid-swaps plus 333 bps, a market source said.

JPMorgan, RBS and VTB Capital were the bookrunners for the Rule 144A and Regulation S deal.

The original issue of $800 million notes priced in July at par to yield Treasuries plus 376 bps.

The lender has headquarters in Moscow.

Chinese deal oversubscribed

The final book for China-based Sun Hung Kai Properties Ltd.'s new $400 million 3 3/8% notes due 2024 was $2.6 billion from 150 investors, a market source said.

The notes priced at 99.173 to yield 3.557%, or mid-swaps plus 193.2 bps via HSBC in a Regulation S deal.

About 90% of the orders came from Asia and 10% from Europe, with 50% from fund managers, 23% form banks, 15% from sovereign wealth funds, 7% from insurers, 3% from private banks and 2% from corporates.

HSBC was the bookrunner for the Regulation S deal.

Sun Hung Kai is a Hong Kong-based financial and securities holding company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.