Ukraine continues to struggle; investors eye MHP, Mriya Agro; more sellers for Lat-Am

By Christine Van Dusen

Atlanta, Aug. 8 – Ukraine remained in focus at the end of the week, with sovereign and corporate bonds declining, as Russian troops continued to gather at the Eastern border and fighting ramped up in and around Donetsk and Lugansk.

The region is “heading into what is likely to be a tense weekend,” according to a report from Eavex Capital. “Meanwhile, the main European indices declined for a seventh straight session on concerns that the Russia sanctions roll-out is threatening the euro zone’s economic recovery.”

Ukraine’s 2023 notes declined about 0.8 percentage points to 88.60 bid, 89.80 offered, the report said.

Ukraine-based poultry producer MHP SA’s 8¼% notes due in 2020 – which priced in March at par to yield Treasuries plus 697 basis points – entered the week’s end down about 2.4 percentage points at 83.90 bid, 87 offered.

Meanwhile, Ukraine-based Mriya Agro Holdings remained in the news, with Standard & Poor’s lowering its corporate credit rating to Selective Default from CCC after the company defaulted on some debt.

Looking to Latin America, cash bond prices on higher-rated credits got a small boost from the United States’ rate rally, a New York-based trader said.

And sellers outnumbered buyers, he said, as investors sought to pare back risk.

In deal-related news, roadshows were set for Colombia’s Empresas Publicas de Medellin ESP (EPM), Indonesia, Hong Kong and China’s Kaisa Group Holdings Ltd.

© 2015 Prospect News.
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