Philippines considers notes; Ireland finalizes bailout; Brazil corporates remain in focus

By Christine Van Dusen

Atlanta, Dec. 22 - The Republic of the Philippines was among the few issuers to mull new deals on a Wednesday that saw several significant headlines - including news from Brazil's Suzano Papel e Celulose SA, Fibria Celulose SA and Magnesita Refratarios SA, along with the finalization of a bailout for Ireland - but little reaction among emerging markets investors.

"It's just very quiet," a New York-based market source said. "Everyone is trying to get out of town."

So even though Ireland's contagion effect has been of concern in recent months, and the bailout could help alleviate some of that anxiety, the market didn't move much.

"It's slow," he said.

Philippines mulls notes

The primary market was largely silent on Wednesday, with just the Philippines considering a possible issue of Philippine peso-denominated global notes in 2011, a market source said.

No other details were available Wednesday.

Market sources were also whispering about the Russian Federation, which will not issue ruble-denominated bonds before the end of the year, according to a statement on the Finance Ministry's website.

Trading slow on LatAm news

Among the news from Latin America on Wednesday was Brazil-based Suzano Papel e Celulose's agreement to buy assets from Brazil's Fibria Celulose for about $885 million. And Brazil-based refractory producer Magnesita Refratarios announced a new share offering.

And Venezuela remained in the news. This time it was for a new bill that would prohibit elected officials from switching political parties or voting against their party. This, critics say, would help president Hugo Chavez retain control even as the opposition party gains some power.

But the bond market didn't react much, the New York-based source said.

"I think it's really slow in terms of trading," he said. "There's stuff going on, but not a lot of trading on the back of it."

DP World selling stake

On Wednesday, Dubai's 6.396% notes due 2014 were trading at 100 bid, 100.50 offered, after Tuesday's close of 99.75 bid, 100.25 offered. The 6.7% notes due 2015 were unchanged at 99.12 bid, 99.62 offered. And the 7¾% notes due 2020 - which traded at 94.40 bid, 94.90 offered on Tuesday - were at 94.37 bid, 94.87 offered on Wednesday.

Meanwhile, Dubai Water and Electricity Authority's 8½% notes due 2015 were seen at 106.10 bid, 106.50 offered on Wednesday after finishing Tuesday at 106.05 bid, 106.45 offered. The 6 3/8% notes due 2016 were unchanged at 97 bid, 97.50 offered. And the 7 3/8% notes due 2020 - which traded Tuesday at 93.30 bid, 93.80 offered - traded Wednesday at 93.37 bid, 93.87 offered.

This came against the backdrop of plans by Dubai-based container terminal operator DP World Ltd. - a subsidiary of once-troubled Dubai World - to sell a majority stake to Citi Infrastructure Investors and a partner in order to repay some of Dubai World's debt, a source said.

Bahrain's ratings affirmed

Also from the Middle East, Fitch Ratings affirmed Bahrain's long-term foreign and local currency ratings at A and A+, respectively, due to the sovereign's strength in the face of the global downturn.

The sovereign's 5½% notes due 2020 were trading Wednesday at 101.82 bid, 102.12 offered. On Tuesday, the notes were trading at 101.77 bid, 102.07 offered.

And the 5% notes due 2015 from the Kingdom of Bahrain's wealth fund, Bahrain Mumtalakat Holding, were seen trading Wednesday at 100.62 bid, 101.02 offered. The previous day, the notes were at 100.36 bid, 100.76 offered.

"The market is quiet but firm," a London-based trader said. "There's not much going on. There are a few sort of prices, but for all intents and purposes, most people have called it a day."

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