New Nigeria notes trade up; emerging markets firm overall; Kenya on tap, but LatAm quiet

By Rebecca Melvin

New York, Feb. 16 – Nigeria’s newly priced notes traded up upon release for secondary market dealings on Friday after the sovereign priced two tranches of $1.25 billion apiece at yield spreads that were tight compared to guidance and initial price thoughts, market sources said.

Nigeria’s 7.143% notes due 2030 were quoted at 101.55 bid, 101.85 offered at late morning, and the sister tranche, a 7.696% note due 2038 was at 102¾ bid, 103¼ offered, according to a London-based trader.

Elsewhere, Egypt’s new tranches did well this past week and were strong on Friday, the trader said. Other parts of the Middle East were also faring well, and South Africa’s bond curve remained 10 bps to 12 bps after having tightened following news midweek that Jacob Zuma stepped down as president after the African National Congress voted to remove him. Markets seem to like his successor Cyril Ramaphosa.

There was no pipeline heard in the Central & Eastern Europe, Middle East and Africa region, but it was expected that more stability would bring out supply.

In addition, there was nothing seen so far in Latin America, several sources concurred.

Looking ahead, Kenya is on the road with a benchmark offering of 10- and 30-year bonds that will price early next week subject to market conditions.

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