Emerging markets quiet; Bank of Moscow, Alliance Oil bond offerings begin to take shape

By Paul A. Harris

St. Louis, Feb. 22 - Emerging markets trading activity remained generally quiet on Monday, according to a syndicate banker in New York.

Amid the calm, a handful of potential issuers took steps to advance their future debt offerings, with new details emerging on offerings from Bank of Moscow and from Alliance Oil Co. Ltd.

Bank of Moscow mandated Credit Suisse to lead a syndicate of banks in placing a benchmark-sized offering of dollar-denominated global bonds.

The financial institution is partly owned by the city of Moscow.

Elsewhere Moscow-based Alliance Oil Co. (/B+/B) set a five-year maturity for its benchmark-sized Rule 144A and Regulation S offering of global bonds.

The U.S. roadshow began Monday in Los Angeles. Pricing is expected this week.

BNP Paribas, Credit Suisse and JPMorgan are leading the deal.

Russia's five-year credit-default swaps closed the New York session 3 bps tighter, at 185 bps mid.

Meanwhile, reports surfaced that the some opposition has emerged in the Argentina legislature to the government's plan to tap central bank reserves to help fund a $20 billion restructuring of defaulted bond debt.

Despite the news, Argentina's five-year CDS tightened on Monday during the U.S. trading session, the syndicate banker said. Argentina's five-year CDS closed at 1,045 bps mid, 10 bps tighter.

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