Emerging markets very quiet on holiday; Latin American market sees strong finish to April

By Aleesia Forni and Paul A. Harris

Columbus, Ohio, May 1 - Emerging markets were very quiet on Tuesday, as many sessions were closed due to the May Day holiday, according to a market source.

Volumes have "definitely been light" both yesterday and today, the source added.

However, the Latin American market did see a strong finish to April, with Venezuela outperforming most other credit ratings.

Argentina, which has struggled since the YPF takeover, bounced nicely into the first day of the month and is about 2½% higher in the long-end compared to mid-week last week.

Inversiones, Braskem trading

Santiago, Chile-based paper company Inversiones CMPC SA's (Baa2/BBB+/BBB+) recent $500 million issue of 4½% senior unsecured notes due 2022 traded at 991/2, par offered, according to a market source.

The deal priced at Treasuries plus 265 basis points, or 98.906, to yield 4.638% on April 18.

The secondary market also saw the $500 million issue of 5 3/8% 10-year senior bonds from Braskem SA (Baa3/BBB-/BBB-) trade at 99.9 bid, par offered on Tuesday.

The Sao Paulo, Brazil-based petrochemicals company priced the deal at 99.809 to yield 5.4% on April 26.

Global Bank offering

Also in the Latin American space, Panama City's Global Bank (Ba1/BB+) is planning a $200 million five-year covered bond offering (Baa3/BBB-), and one source believes there is considerable demand for paper in that country.

The source added that there are some real-money buyers that hold sizable positions, so Panama-related deals would "probably do well."

Though the source had only seen broad details of the proposed transaction, he believes it should be well received.

As previously reported, the deal could price as early as Wednesday.

Deutsche Bank is the bookrunner for the Regulation S and Rule 144A deal, and HSBC is co-manager.

Georgian Oil roadshow

In the primary market, Georgian Oil and Gas Corp. JSC (/B/BB-) has mandated JPMorgan and Goldman Sachs to arrange a series of investor meetings in London beginning on Wednesday, according to a market source.

Georgian Oil and Gas is a Tbilisi, Georgia-based company focused on the exploration, production, transportation and sales of oil and gas resources.

China ZhengTong roadshow

Also in the primary, China ZhengTong Auto Services Holdings Ltd. will begin a series of fixed-income meetings on Wednesday in Asia, Europe and the United States ahead of a proposed Rule 144A and Regulation S senior notes offering, according to a market source.

The company has mandated JPMorgan as the bookrunner and CCB International as lead manager.

Proceeds will be used to repay the company's HK$1,218,000,000 loan and its RMB 1 billion loan, as well as for general corporate purposes.

China ZhengTong is a Beijing-based automotive sales and services company.

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