Issues from Evergrande, Kexim; investors watching Ukraine; Cameroon, Bulgaria deals ahead

By Christine Van Dusen

Atlanta, Feb. 10 – Investors on Tuesday were looking ahead to Wednesday’s meeting in Minsk, where European leaders were set to discuss a new peace deal in Ukraine, as Korea Export-Import Bank and China-based Evergrande Real Estate Group sold notes.

“While there may well be positive headlines out of Wednesday’s meeting, it will clearly not be easy to achieve a lasting peace, given how much the conflict has deteriorated in recent months,” a London-based analyst said. “Germany and France have already threatened broader sanctions if a peace deal is not agreed.”

In response, credit default swaps spreads for Russian bonds were 5 basis points wider on Tuesday morning, he said.

In trading, from Asia spent most of Tuesday’s session on firm footing before sellers emerged, moving high-grade bonds as much as 3 bps tighter, a London-based trader said.

Middle Eastern bonds put in a busy session on Tuesday, with lots of sellers spotted for long-dated bonds from Saudi Electricity Co. and Qatar, a London-based trader said.

Looking to Latin America, some trading was a bit “sloppy” on Tuesday, a New York-based trader said.

In deal-related news, Bulgaria has mandated Citigroup, HSBC, Societe Generale CIB and Unicredit as the bookrunners for a €3 billion notes program, a market source said.

And Cameroon is looking to issue up to $1.5 billion of notes with bookrunners Societe Generale CIB and Standard Chartered Bank, a market source said.

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