Emerging Markets: MENA business picks up; Nigeria’s Seplat prices; Pakistan eyes dollar deal

By Rebecca Melvin

New York, March 24 – New issuance for the Middle East was more abundant this past week than in recent weeks, and there was notable issuance for the whole of the Middle East and North Africa region. Banks were a significant source of supply, and looking ahead Pakistan mandated banks to organize a planned three-tranche deal.

Doha Bank QSC’s special purpose entity, Doha Finance Ltd., priced $500 million 2 3/8% five-year senior unsecured notes (expected ratings: Baa1//A), according to a market source on Wednesday.

Pricing occurred at a reoffered 99.738 for a yield of 2.431% and spread over mid-swaps of 150 basis points.

ING Groep was global coordinator and joint lead manager of the Regulation S issue. Barclays, Credit Suisse, ING, J.P. Morgan, Mizuho, MUFG and QNB Capital were also joint lead managers.

The notes will be listed on the London Stock Exchange.

The bank is based in Doha, Qatar.

Commercial Bank PSQC priced $500 million perpetual additional tier 1 capital securities at par, according to a post-stabilization notice with the London Stock Exchange.

Credit Suisse Securities (Europe) Ltd. was the stabilization manager of the Regulation S deal.

The issuer is a retail and wholesale banking services provider based in Doha.

Islamic Development Bank was said to have priced $2.25 billion of five-year notes on Thursday. The lender had set the spread for its U.S. dollar-denominated five-year sustainability Islamic bond (expected ratings: Aaa/AAA/AAA) at mid-swaps plus 33 bps yield on Wednesday. Final terms were expected later in that session.

Pricing was tightened from initial talk for yield in the area of mid-swaps plus 39 bps. Orders for the issue were more than $2.25 billion at the time the spread was set.

Citigroup, Goldman Sachs International, HSBC, Natixis, Societe Generale, Standard Chartered Bank Warba Bank are joint lead managers of the Regulation S deal, which is being issued by IDB Trust Services No. 2 Sarl.

The proceeds of the sukuk will be allocated to finance or refinance green projects (10%) and social development projects (90%) that are eligible under the bank’s sustainable finance framework. Pending allocation or disbursements, the proceeds will be invested in money market instruments in line with the bank’s liquidity policy and guidelines.

The issuer is a Jeddah, Saudi Arabia-based lender.

Looking ahead, the Pakistan held a global investor call on Thursday and is holding subsequent investor calls regarding a proposed triple tranche offering of U.S. dollar-denominated bonds due in five, 10 and 30 years, according to a syndicate source.

Credit Suisse, Deutsche Bank, Emirates NBD Capital, J.P. Morgan and Standard Chartered Bank are the joint lead managers and joint bookrunners with BOC International as joint lead manager and passive joint bookrunner of the proposed offering, which will be sold under Rule 144A and Regulation S, subject to market conditions.

The notes will be issued under the sovereign’s existing global medium-term note program.

For North Africa, Nigeria’s Seplat Petroleum Development Co. plc priced $650 million of 7¾% five-year senior notes (B2/B/B-) at par, according to a notice.

The notes are non-callable for two years.

J.P. Morgan Securities plc, Citi, Standard Bank, Standard Chartered Bank, Natixis, Rand Merchant Bank, Societe Generale, FCMB Capital Markets, Nedbank, United Bank for Africa and Zenith Bank plc were the managers.

Concurrently with the offering, the oil and gas exploration and development company is redeeming its existing $350 million 9¼% senior notes due 2023.

The new notes will be listed on the London Stock Exchange.

For Asia, MGM China Holdings Ltd. priced an upsized $750 million issue of 4¾% senior notes due Feb. 1, 2027 (Ba3/B+/BB-) 99.97 to yield 4¾% on Thursday, according to market sources.

The issue size increased from $500 million.

The yield printed at the tight end of the 4¾% to 4 7/8% yield talk. Initial guidance was in the low 5% area.

BofA was at the left of a syndicate of joint bookrunners that also included Bank of China Macau Branch, ICBC (Macau), Bank One, BNP Paribas, SMBC, UBS, Barclays, Banco Nacional, Deutsche Bank, JPMorgan, Scotia, China Construction, China International and Union Gaming.

The Macau-based developer, owner and operator of gaming and lodging resorts in the Greater China region plans to use the proceeds to repay debt under its revolver and for general corporate purposes.

Thailand’s Krung Thai Bank PCL sold $600 million of additional perpetual tier 1 subordinated notes, according to a listing notice.

The notes have a 4.4% coupon.

Citigroup Global Markets Ltd., HSBC Ltd., Merrill Lynch (Singapore) Pte. Ltd. and Standard Chartered Bank are bookrunners.

The lender is based in Bangkok.

Israel’s Mizrahi Tefahot Bank Ltd. sold a $600 million offering of 3.077% tier 2 notes due April 7, 2031 (A-/A) on Wednesday, according to a market source.

The notes priced with a spread of Treasuries plus 225 bps after being launched with a spread in the Treasuries plus 250 bps area.

The notes come with five years of call protection.

Citigroup and Goldman Sachs are bookrunners of the Israel-based lender’s deal.

Meanwhile, issuers for the Central & Emerging Europe region began to re-emerge. Czech Gas Networks Investments Sarl plans to price a benchmark-sized offering of euro-denominated notes (expected rating: //BBB+), according to a notice.

SG CIB is the manager.

The gas distribution company based in the Czech Republic.

The issuer previously priced €600 million of 1% senior notes due July 16, 2027 at 99.316 in July 2020.

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