swaps plus 7bp. Pricing tightened from
guidance of 10bp area, and market sources
estimated that the final spread gave a 4bp
new issue concession, tight in the context
of recent euro covered deals.
The bonds, backed by Singapore dollar
residential mortgage loans and compliant
with the standards for the ECBC covered
bond label, are expected to be rated Aaa/
AAA (Moody’s/S&P).
Orders totalled over €730m from 38
accounts. Investors from the UK and
Ireland booked 38%, Germany and Austria
29%, the Benelux countries 18%,
Scandinavia 3% and France 1%, while
accounts from Asia and elsewhere took
11%.
By investor type, fund managers bought
40%, central banks and official institutions
a combined 30%, banks 26%, and pension
funds and insurers a combined 4%.
HSBC, NordLB, Societe Generale, UBS and
UOB were bookrunners.
This was UOB’s sixth issue under its
US$8bn global covered bond programme.
UOB is also planning to issue Panda
bonds in China’s interbank bond market
after its Chinese unit launched a maiden
print of renminbi bonds in April.
China Chengxin has assigned a rating to
United Overseas Bank for a proposed bond
offering in the interbank market,
according to a filing by the Chinese
agency. It did not disclose the rating.
In April, United Overseas Bank (China)
printed Rmb1bn of three-year notes at par
to yield 4.93%.EUROPE/AFRICA
ALBANIA
SOVEREIGN APPOINTS BANKS FOR
BOND OFFERINGALBANIA has mandated banks for an
international bond offering, according to a
document from the country’s ministry of
finance seen by IFR.
The sovereign has selected Banca IMI,
Citigroup and Societe Generale to lead the
euro-denominated transaction.
According to the request for proposals,
which was sent to banks before the
summer, Albania is aiming to raise up to
€500m with a maturity from five to 10
years. The issuer is also intending to buy
back “a fraction” of its outstanding 2020
notes.
The sovereign is rated B1 by Moody’s and
B+ by S&P.BELARUS
COUNTRY EYES PANDA BONDSThe REPUBLIC OF BELARUS (B3/B/B) has obtained
a Chinese domestic rating, paving the way
for its debut Panda bond issue in the
country’s interbank bond market.
China Chengxin has assigned a domestic
rating of AA+ to the sovereign and a global
rating of BBg to Belarus, according to a press
release published on the official website of
the Belarusian Embassy in China on
September 3.
“Obtaining a credit rating that meets
Chinese standards is part of Belarus’
preparations to issue sovereign bonds in
China’s domestic market,” it said.
In January 2017, Belarus conducted a non-
deal roadshow via Bank of China and ICBC
International in Hong Kong, but it has not
proceeded with an issue.LATVIA
REPUBLIC BANISHES BAD MEMORIESLATVIA dispelled the memories from a
disappointing trade from earlier in the year
as it revisited its €350m May 2028s and
€800m February 2047s with two successful
taps.
The sovereign added a total of €350m,
increasing the 2028s by €150m and the
2047s by €200m.
“It makes sense to tap the 2028s, bring
them up to benchmark size and help
liquidity,” said one banker off the deal.
“A longer-dated tap is not a bad idea
either – the yield on this bond has tightened
10bp–15bp since June so it was a good time.”
A second banker away said that the
combined books, which peaked in excess of
€750m, showed a decent result for the
sovereign after Latvia’s unimpressive trade
in May.
Back then, Latvia printed €650m through
the 2028s and 2047s, although its failure to
hit a benchmark size with the new 10-year
hinted at a difficult tale to be told in shifting
the notes.
“This time is a good outcome for them,”
said the second banker. “They managed to
collect a good book and to compress the
spread.”
Bankers away reckoned IPTs had offered
NIPs of 10bp on the reopenings. Latvia
brought in pricing by 4bp on both legs, for a
print on the 2028s at swaps plus 14bp and
the 2047s at 38bp over swaps.
“It was quite an interesting deal as we
didn’t really know what the outcome was
going to be,” said a lead. “This is not like anEIB trade where you know who you can sell
to. There’s no real natural investor base and
you mainly have to rely on asset managers
who think they can make a profit in the
short term.”
Citigroup, JP Morgan and Natixis were leads.LITHUANIA
MAXIMA MAXIMISES INVESTOR OPTIONSBaltic retailer MAXIMA GRUPE got its debut
international bond over the line thanks to
an anchor investment from the EBRD.
The company sold a €300m five-year
note at a yield of 3.5%, at the tight end of
the guidance range that went out to 3.75%.
The final yield was the mid-point of the
feedback that leads got from the
roadshow.
The deal was not the easiest sell given
the backdrop in emerging markets. In
addition, it was not necessarily clear which
type of accounts would buy a non-
investment-grade rated debut corporate
based in Lithuania.
But the issue drummed up enough
support especially from local accounts,
according to a banker close to the deal.
Maxima Grupe, which is rated BB+ by
S&P, reported Ebitda of about €221m in
2017.
The ratings agency says that the proceeds
will be used to refinance existing bank
funding, which drove the acquisition of
Polish retailer Emperia group.
“We consider that Maxima has a relatively
limited size and Ebitda base, but that its
resilient operating model benefits from a
dominant position in its domestic market,
meaningful sales contribution from private
labels, and diversified store formats,” said
S&P analysts.
BNP Paribas, Deutsche Bank and SEB were
lead managers and bookrunners.International Financing Review September 8 2018 63EMERGING MARKETS EUROPE/AFRICA
ALL INTL EMERGING MARKETS BONDS
BOOKRUNNERS: 1/1/2018 TO DATE
Europe/Africa
Managing No of Total Share
bank or group issues US$(m) (%)
1 Citigroup 31 9,755. 03 14 .6
2 JP Morgan 28 7 ,194.81 10 .8
3 Deutsche Bank 16 5,703.42 8.6
4 VTB Capital 11 5,157.69 7 .7
5 HSBC 14 4,033.6 4 6. 0
6 Standard Chartered 9 4,004.97 6. 0
7 BNP Paribas 14 3,142.45 4 .7
8 Goldman Sachs 7 2,709.87 4 .1
9 SG 13 2,578.20 3.9
10 Barclays 5 1,868.96 2.8
Total 71 66,680.63
Excluding equity-related debt.
Source: Thomson Reuters SDC code: L28 Emerging 2250 p57-66.indd 63 07/09/2018 18:54:48