New Sibur six-year notes trade around issue; market eyes more CEEMEA paper next week

By Rebecca Melvin

New York, Sept. 29 – Sibur Securities DAC’s newly priced 4 1/8% notes traded right around issue on Friday after the Russian petrochemical company priced $500 million of the six-year guaranteed notes at par, a market source said.

The new Sibur 2023 notes were seen at 99.85 bid, 100.15 offered.

Investors of the CEEMEA region, including Central & Eastern Europe, Middle East and Africa, should expect more deals for this region coming up next week, syndicate sources said. No details have been made public, one said, but there are deals on the way.

Among notable deals this past week, Turkiye Cumhuriyeti Ziraat Bankasi AS priced $500 million of 5 1/8% six-year notes at par, and Saudi Arabia brought $12.5 billion of sovereign debt including 2 7/8% notes due 2023, 3 5/8% notes due 2028 and 4 5/8% notes due 2047.

Investors continue to watch tensions in these regions. This past week, Turkish president Reycep Tayyip Erdogan warned of possible military action related to the issue of Kurdish independence and also hosted meetings with Russian president Vladimir Putin over Syria, Iraq and other issues.

More than $15 billion of new hard-currency deals priced this past week, but on Friday multiple local currency deals priced. PJSC RusHydro sold RUB 20 billion of 8 1/8% loan participation notes due 2022, according to a filing with the London Stock Exchange. Proceeds will be used to refinance a current loan portfolio and to finance an investment program. The Moscow-based electricity generating company will also use proceeds for general corporate purposes.

In Asia, Malaysia-based real estate investment trust Sunway Bhd. announced that 60% owned subsidiary Sunway Parkview Sdn. Bhd. issued RM 300 million on Friday as part of an up to RM 999 million medium-term note program. Proceeds will be used to reimburse Sunway Parkview for costs related to an acquisition of land leases.

Also, a subsidiary of Malaysia’s Alliance Financial Group Bhd. completed its first issuance of subordinated sukuk totaling RM 130 million under a new sukuk program. The 5˝% 10-year notes are non-callable for five years.

Meanwhile, CK Asset Holdings Ltd., formerly Cheung Kong Property (Holdings) Ltd., announced a $5 billion euro medium-term note program on Friday.

Subsidiary CK Property Finance (MTN) Ltd. will be the issuer under the program, which is being arranged by HSBC, BofA Merrill Lynch and Mizuho Securities.

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