RHB Bank, Frasers Centrepoint price; ceasefire, economic data, Hong Kong keep investors nervous

By Christine Van Dusen

Atlanta, Sept. 29 – Malaysia’s RHB Bank Bhd. and Singapore’s Frasers Centrepoint Ltd. sold notes on Monday as investors stayed focused on the ceasefire in Ukraine and whether the European Union would lift sanctions on Russia.

“If the ceasefire is still holding in one month’s time, for example, they will drop certain sanctions,” a London-based analyst said.

“But the outcome is extremely uncertain. An immediate removal of sanctions this week is very unlikely, in our view, as there appears to be divided opinions within Europe on the matter.”

Russian credit default swaps spreads opened on Monday three basis points wider, he said.

Also on investors minds were the ongoing protests in Hong Kong, which hurt Asian flows on Monday morning, he said. The market is also concerned about the global economic outlook.

“Generally, activity has been limited,” he said.

Turkey’s credit default swaps widened by 3 bps, as did most corporate and banking bonds, he said.

“Likewise, Central and emerging Europe and the Middle East and North Africa are generally under a little bit of pressure this morning,” he said.

In other news, the final book for Kuwait-based Burgan Bank SAK’s recent $500 million issue of 7 ¼% perpetual notes that priced at par was about $850 million, a market source said.

The notes came to the market at a spread of 532.5 bps over mid-swaps with HSBC, Citigroup, JPMorgan and National Bank of Abu Dhabi in a Regulation S deal.

About 32% of the orders came from Europe, 26% from the United Kingdom, 21% from the Middle East, 15% from Asia and 6% from offshore U.S.

Fund managers picked up 49%, private banks 36% and banks 15%.

RHB Bank prices bonds

RHB Bank priced $300 million of 3.088% notes due Oct. 3, 2019 at par to yield 3.088%, a market source said.

RHB Investment Bank, BofA Merrill Lynch and Deutsche Bank were the bookrunners for the Regulation S deal.

RHB Bank is a subsidiary of Malaysia’s RHB Capital Bhd., a Kuala Lumpur-based financing firm.

Frasers issues notes

Frasers Centrepoint priced S$200 million of 3.95% notes due Oct. 7, 2021 at par to yield 3.95%, a market source said.

DBS Bank, HSBC, OCBC and Standard Chartered Bank were the bookrunners for the Regulation S deal.

Frasers Centrepoint, a subsidiary of Frasers and Neave, Ltd., is a residential property developer and retail mall owner and operator in Singapore.

Mandate for Mytrah

Mytrah Energy (Singapore) Pte. Ltd. has mandated Deutsche Bank as the global coordinator for a dollar-denominated issue of notes (/B/), a market source said.

Deutsche Bank, Investec and Standard Chartered Bank are the joint bookrunners and joint lead managers for the Rule 144A and Regulation S offering.

Mytrah operates wind power assets in India.

Tuan Sing on roadshow

Singapore’s Tuan Sing Holdings Ltd. is on a roadshow with DBS Bank and HSBC, a market source said.

An offering of Singapore dollar-denominated notes is expected to follow.

The proceeds will be used for property development and investment as well as for general corporate purposes, which include refinancing borrowings and financing investments and general working capital.

Based in Singapore, Tuan Sing's businesses include property, hotel investment and industrial services.

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