ENAP, China Hongqiao price notes; sentiment gets a boost from ECB; deal pipeline perks up

By Christine Van Dusen

Atlanta, Oct. 27 – Chile’s Empresa Nacional del Petroleo (ENAP) and China Hongqiao Group Ltd. priced notes on a slightly better Monday for emerging markets assets, though bonds from the Middle East were quiet or wider.

“Sentiment has benefitted from the European Central Bank stress test results, and we also have the Federal Open Market Committee later this week, with consensus largely pointing to little change in tone,” a London-based analyst said.

Also contributing to the better tone on Monday: Standard & Poor’s affirmed Russia’s BBB- and negative outlook rating.

“Elsewhere, flows have been relatively limited so far this morning, but spreads are generally a little tighter, helped by the Treasury move,” he said.

For bonds from the Middle East, it was a “lackluster session,” a London-based trader said.

Perpetual bonds were among the most active from the region, with better buyers noted for Emirates Islamic Bank, Abu Dhabi Islamic Bank and Global Education Management Systems.

From Latin America, bonds from Brazil were mixed, with Gerdau SA trading higher, Braskem SA firming and Odebrecht SA lagging, a New York trader said.

The new notes from Chile’s SACI Falabella – 4 3/8% notes due 2025 that priced at 99.932 – were seen Monday at 100½ bid.

And Chile-based Sociedad Quimica y Minera de Chile SA’s (SQM) recent 4 3/8% notes due 2025 that priced at 99.41 traded Monday at 99.45, he said.

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