IFR: US CORP BONDS-EDC on tap; UK banks, Gaddafi in news

By Andrea Johnson

BRADENTON, April 11 (IFR) – US high grade market players
expect USD15-20bn this week, as issuers move to tap the market
before a potential vacation period around Passover and Easter
the week of April 18. The only thing out so far this morning is
EDC, but a few EM names are on the list for this week.

CALENDAR

So far this morning, the only definite on the calendar is
from the SSA side with Export Development Canada (EDC), rated
Aaa/AAA, announcing it mandated Deutsche Bank, HSBC, RBC CM and
TD Secs to lead its forthcoming USD 3-year global benchmark
issue. The books are open at guidance heard at mid-swaps less
6bp area.

Also out this morning was news of a deal from Turkiye
Garanti Bankasi (GARAN.IS: Quote, Profile, Research) (Ba3/BB/BBB-), part owned by Spain’s
BBVA, which begins a two-day roadshow in London today as well as
the US West Coast for a new Eurobond alongside Deutsche Bank,
Goldman Sachs, JP Morgan and Standard Chartered Bank.

The roadshow continues tomorrow Boston with the US marketing
effort concluding on April 14 after two-days of meetings in New
York. The European leg ends on April 13 in Zurich and Geneva.

Turkey’s second-largest financial met investors in London in
February in a non-deal roadshow and said it could raise up to
USD1.5bn from international debt capital markets.

Other than that, South Korean lender Hana (086790.KS: Quote, Profile, Research) Bank
(A1/A-) wrapped up roadshows last week. We figured this might be
one of the first deals out of the gate this week, but there was
no news on Hana out of Asia, so it may not be today’s biz. The
US roadshow took place in New York and Boston Apr 4 and 5 was in
Singapore on Apr 6 and wrapped up in Hong Kong Apr 7. Barclays
Capital, Citigroup, Hana Daetoo Securities, HSBC and Standard
Chartered are the mandated banks.

Abu Dhabi’s Mubadala Development Company [MUDEV.UL]
(Aa3/AA/AA) will wrap up its roadshow on Tuesday with
expectations centering on a new 144a US dollar benchmark issue.
Barclays Capital, HSBC, National Bank of Abu Dhabi, SG CIB and
Standard Chartered Bank are arranging the two-team roadshow.

The US leg of the road show began Friday on the West Coast,
is in New York today before concluding in Boston on Tuesday. The
Team B will met investors in Abu Dhabi on Sunday and is in
Singapore today.

China National Petroleum Corp [CNPET.UL], the country’s
largest oil company, will embark on a global roadshow on April
11 covering cities in Asia, Europe and the US for a US dollar
Reg S/144a 5-, 10- and 30-year bond. Citigroup, ICBC
International and Standard Chartered are the joint global
coordinators with Bank of America Merrill Lynch, BOC
International, Deutsche Bank and HSBC alongside the trio as
joint bookrunners.

CNPC (HK) Overseas Capital, a wholly owned subsidiary of
CNPC Finance (HK) is the issuer with the latter acting as
guarantor. CNPC Finance (HK) is the subsidiary and sole offshore
treasury centre of CNPC.

The bonds are expected to be rated A1 (positive)/A+
(stable)/ A+ (stable) (Moody’s/S&P/Fitch).

South Korea’s Hyundai Steel Company (004020.KS: Quote, Profile, Research), rated Baa3
(stable) by Moody’s and BBB- (stable) by S&P, has mandated BofA
Merrill Lynch, Citigroup, Credit Suisse, HSBC and J.P. Morgan as
joint bookrunners and joint lead managers for a
dollar-denominated 144A/Reg S bond transaction.

The issuer is meeting investors in Hong Kong and Los Angeles
on April 11, in Singapore and Boston on April 12 and in London
and New York on April 13.

NEWS

UK BANKS TOLD TO BOOST CAPITAL, SHIELD TAXPAYERS – REUTERS:
Britain’s top banks should shield their retail operations from
riskier investment banking activities and hold more capital to
protect taxpayers from any future financial crisis, a
government-commissioned report said.

Shake-up proposals outlined on Monday appear harshest for
Lloyds Banking Group, which may be forced to sell hundreds more
branches in addition to the 600 already on the block in order to
improve competition on the high street.

The recommendations in a 208 page report are not as severe
as many bankers had feared, as banks already hold close to the
recommended core Tier 1 capital level of 10 percent.

However ring-fencing their retail arms could force HSBC,
Barclays and peers to hold billions of pounds more capital,
increase funding costs and squeeze their profits.

British finance minister George Osborne said he welcomed the
“excellent analysis” and findings of the report by the banking
commission, which was led by former Bank of England interest
rate setter John Vickers.

The panel wants to make banks less risky, better able to
absorb losses, and ensure that vital operations like payments
systems and cash for ATMs are kept running if a lender nears
collapse as RBS did three years ago.

The banks are expected to lobby heavily before the
commission’s final report is handed to Osborne and Business
Secretary Vince Cable in September. HSBC and Barclays have
threatened to quit London for New York or Hong Kong if
regulation becomes too onerous.

Barclays had been seen as most at risk if the panel proposed
more formal separation of businesses, due to its reliance on
investment banking. But by 0740 its shares were up 3.7 percent,
while Royal Bank of Scotland rose 3 percent and the other UK
banks were near flat.

“They’ve got away with it, apart from Lloyds which might
have to sell off more assets, but it could have been harsher and
it wasn’t,” said John Smith, senior fund manager at Brown
Shipley.

“It could have been harsher and there’s relief that it’s
been in line with expectations.”

GADDAFI ACCEPTS PEACE PLAN, REBELS SAY HE MUST GO – REUTERS:
Muammar Gaddafi has accepted a roadmap for ending the conflict
in Libya including an immediate ceasefire, the African Union
said on Monday, but an opposition representative said it would
only work if Gaddafi left power.

South African President Jacob Zuma, who met Gaddafi at the
head of a delegation of African leaders, urged NATO to stop air
strikes on government targets to “give ceasefire a chance”.

Earlier truce offers from Gaddafi have come to nothing and
the rebels, who took up arms across the east and in some towns
in the west after the Libyan leader crushed protests in
February, have said they will accept nothing less than an end to
his 41 year-old rule.

IFR: US CORP BONDS-EDC on tap; UK banks, Gaddafi in news