Emerging markets react to U.S. payroll data; Russian Agricultural Bank taps bookrunners

By Aleesia Forni

Columbus, Ohio, May 4 - Emerging markets opened firm, despite mild equity market weakness heading into U.S. payrolls, one source said.

"It's pretty ugly out there, mostly based on the payroll," a New York-based source said.

Additionally, U.S. Treasuries rallied on Friday on the back of news that U.S. unemployment rates have fallen, another source said, adding that credit spreads tightened on the day.

London's session was "a little heavy" heading into the day's close, and stocks were down roughly 1%, a source there said.

The Markit iTraxx SovX CEEMEA index, which tracks Central and Eastern Europe, the Middle East and Africa credit default swaps, was 13 basis points tighter from Thursday's close and sat at 277 bps during Friday's London session.

Hutchison Whampoa perpetuals

The secondary market saw Hutchison Whampoa Ltd. at par bid near the end of New York's session, according to a source there.

Hutchison Whampoa priced a $1 billion issue of subordinate guaranteed perpetual capital securities at par with an initial coupon of 6% on Wednesday, and the deal came at a spread of 517.6 bps over the company's bonds non-callable until 2025.

Also in the secondary, Gazprombank's notes due 2019 hit 101½ bid, 102 offered at the end of London's session.

The bank priced $500 million of 7¼% notes at par, or mid-swaps plus 567 bps, on April 27.

Russian Agricultural Bank deal

Russian Agricultural Bank mandated VTB Capital, Citigroup and JPMorgan to arrange investor meetings ahead of a possible ruble-denominated offering, according to a syndicate source.

The meetings will make stops in Europe and the United States from May 9 to May 15.

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