Serbia eyes market, plans investor meetings; Czech Export Bank sees 'amazing response'

By Aleesia Forni

Columbus, Ohio, March 9 - Emerging markets bonds wrapped up another solid week on Friday as investors continued their reach for risk, a London-based trader said.

While both anxieties over the Greek PSI and global growth developments weighed on emerging markets asset performance in the earlier part of this week, the market quickly resumed its "upbeat" tone as the flow turned more positive later in the week, according to Barclays Capital Emerging Markets Research.

In the secondary market, Czech Export Bank's (A1/AA-/) €250 million 3 5/8% seven-year notes are receiving an "amazing response," snapping 10 basis points tighter by London's mid-day on Friday, according to a market source.

The deal priced on Thursday to yield 180 bps over mid-swaps, according to a syndicate source, pricing at 99.502 to yield 3.707%.

The notes were issued under the bank's €3 billion euro medium-term note program.

Barclays and Goldman Sachs International were the bookrunners.

This activity has put the deal at an even spread to the Czech Republic's €2 billion issue of 3 7/8% notes (A1/AA-/A+) to yield mid-swaps plus 160 bps, which priced on Feb. 21.

The notes priced at 99.169 to yield 3.977%, and the spread came inside of the 170 bps guidance.

The week ahead

Republic of Serbia (BB/BB-) will hold investor meetings Monday through Wednesday in Vienna, Frankfurt, Munich, Milan, Amsterdam and London for a possible debt capital markets transaction, according to a market source.

Raiffeisen Bank International is arranging the meetings.

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