Issuance from Isbank, 21Vianet; spreads tighten but tone is poor; banks line up new deals

By Christine Van Dusen

Atlanta, June 18 – China’s 21Vianet Group Inc. and Turkiye Is Bankasi AS (Isbank) sold notes on Wednesday as spreads tightened on the back of better-than-expected economic data and the resulting move in U.S. Treasuries – in spite of continuing tension in Iraq and Kenya.

“We are still seeing real-money buying in general,” a London-based analyst said.

But overall, the tone was poor for emerging markets bonds, a trader said.

“Only a couple of exceptions, really,” he said.

He pointed to Commercial Bank of Qatar’s 2 7/8% notes due 2019 that priced at 99.497 and National Bank of Ras Al Khaimah’s (RAKbank) 3¼% notes due 2019 that priced at 99.275.

The Qatar bank’s notes closed up at 99.85 on Wednesday, following some solid two-way action, the trader said.

RAKbank’s notes also saw solid two-way activity and finished Wednesday at 100.15.

“But for the most part, paper was for sale,” the trader said.

Qtel International’s bonds were between 7 basis points and 12 bps wider, he said, with some of the 2025s trading at 106.45 late in the day.

“The Qatar sovereign was wider,” he said.

Dubai-based Emaar Properties’ 2024 bonds closed near par while Emirates’ 2025 notes held in at 98 bid, 98½ offered.

In deal-related news on Wednesday, Turkey’s Kuveyt Turk Katilim Bankasi AS set talk and Cairo’s African Export-Import Bank (Afreximbank) made plans for a roadshow.

© 2015 Prospect News.
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