Hebei, IDBI, TEE Land issue notes; Russia widens only slightly; Odebrecht holds steady

By Christine Van Dusen

Atlanta, Oct. 20 – China’s Hebei Iron and Steel Co. Ltd., India’s IDBI Bank Ltd. and Singapore’s TEE Land Ltd. sold notes on a Monday that saw credit default swaps spreads for Russia move only slightly wider, even after Moody’s Investors Service downgraded the sovereign.

This came as the sovereign was poised to sign a gas deal with Ukraine on Tuesday, a London-based analyst said.

“Despite this positive element, however, we see little prospect of the European Union dropping sanctions later this week, following fairly firm rhetoric from both sides,” he said.

Meanwhile, bonds from Turkey and Central and emerging Europe were stronger on Monday morning, he said.

“Turkey’s credit default swaps are 1 basis point tighter,” he said.

In other trading on Monday, Brazil-based Odebrecht SA saw most of its bonds hold on to recent levels, even as the builder remained a target of a bribery probe, a New York-based trader said.

The bonds haven’t firmed up as much as other Latin American names have during the last few session, but Odebrecht’s 2029s and 2042s were a bit higher on Monday, he said.

The trader said he expects the investigation to blow over and that Odebrecht is likely to suffer the penalty, which is a loss of government contracts for two years.

Odebrecht’s 2029 bonds could be a good bet right now, he said, given that they tend to underperform during weak stretches but bounce back with vigor.

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