Investors encouraged about Greece; Financiera Independencia, Papelero Scribe pricing soon

By Christine Van Dusen

Atlanta, March 22 - The news for emerging market debt was a bit more positive Monday as investor anxiety over Greece's financial problem - and Europe's attempts to fix it - lessened and Argentina got the green light for a swap reoffer, market sources said.

"Everything is more or less a shade on the positive side as a result of Greece," said Enrique Alvarez, a debt strategist with IDEAglobal. "We started the morning as we have in recent days, with a lot of anxiety related to what is going to be said or any agreements that may come about in the meeting of European nations. But the U.S. has looked less willing to ride that wave of anxiety, and in turn the market has stabilized and worn off the Greek effect as the day has gone on."

The JPMorgan Emerging Markets Bond Index Plus finished Monday at 510.68, off 0.19% on the day, while the EMBI Global index ended the day at 485.78, off 0.16%.

Also on Monday, Argentina got the go-ahead from the Securities and Exchange Commission to push forward with an exchange for $20 billion in debt, according to market sources.

"This was the last piece of the puzzle that they needed to launch a swap reopening for holdouts," Alvarez said. "They said they're going to do so in the next three weeks."

It's expected that this reopening of a 2005 debt restructuring could enable the sovereign to issue new bonds soon, another market source said.

"That's been positive for the credit," Alvarez said. "They looked to have ironed out difficulties. We'll get some details on a firm offering. That's caused Argentina to go up 0.3% in performance terms. And they were already trading at relative highs in the last three to four weeks."

Investors "will be in there speculating, or if they already hold positions they'll be riding the building momentum," he said.

Deals for Mexican issuers

Monday also saw Mexico's Financiera Independencia talk a possible $150 million to $250 million issue of five-year notes at a yield of 10% to 10¼%, according to a market source. The microfinance lender is expected to price the deal mid-week.

Another Mexican issuer is looking to bring a deal to market next week. Paper producer Grupo Papelero Scribe SA de CV is holding a roadshow for a $250 million issue of 10-year notes this week and early next week, a source said.

Sovereigns plan deals

Additionally on Monday, the Kingdom of Bahrain took its roadshow for a planned benchmark dollar deal to London after a March 17 marketing trip in New York, a London-based market source said.

"I have not heard what they will do, but I assume it [will come] this week," the source said.

Monday also saw Poland planning an issue of €1 billion bonds due 2017. Barclays Capital, Citigroup and HSBC are the bookrunners for the deal, which will be priced to yield mid-swaps plus 100 basis points, a market source said.

Overall, "it was a relatively quiet day," a New York-based source said. "It took a breather from the daily rally."

Financiera Independencia pricing soon

Mexico's Financiera Independencia is planning to issue a $150 million to $200 million five-year bond, according to an informed market source.

Bank of America Merrill Lynch and JPMorgan are the bookrunners for the deal, which is being talked at a yield of 10% to 10¼%.

Pricing is expected mid-week.

Financiera Independencia is a Pena Blanca Santa Fe, Mexico-based microfinance lender.

Grupo Papelero Scribe on roadshow

Mexico's Grupo Papelero Scribe is holding a roadshow for a $250 million offering of 10-year notes this week and early next week, according to an informed market source.

Credit Suisse is the bookrunner for the deal, which is expected to price next week.

Proceeds will be used to refinance debt.

Grupo Papelero Scribe is a pulp producer and manufacturer of printing and writing paper.

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