Russia bonds heavy; Egypt deals edge par; focus shifts to Saudi Arabia; Qatar eyes deal

By Rebecca Melvin

New York, April 10 – Russia’s emerging markets bonds were very heavy on Tuesday in continuation of Monday’s pain after the U.S. Treasury sanctioned seven Russian oligarchs, 12 companies that they control and 17 senior government officials at the end of last week.

But Egypt’s new tranches released for secondary market action on Tuesday were slightly better. The Egypt 2026 notes were quoted 100¼ bid, 100½ offered toward the end of London’s session, and the new Egypt 2030 notes were quoted at 100¼ bid, 100.40 offered.

But the focus was shifting in the Middle East and Africa region to Saudi Arabia, which announced a new triple-tranche offering with pricing set late in the day. The initial price talk for its planned seven-year, 12-year and long bond dollar benchmarks was for a yield spread in the U.S. Treasuries plus 170 bps area for the 2025 notes; at Treasuries plus 200 bps for the 2030 notes; and at Treasuries plus 235 bps for the 2049 notes.

In MENA, “it’s all about [Saudi Arabia] coming back with a three-tranche deal. The book is already over $30 billion I hear for it.”

Meanwhile, Qatar is on the calendar with a triple tranche of dollar five-, 10- and 30-year notes slated to price following the wrap-up of investor meetings on Wednesday subject to market conditions.

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