Roadshow calendar for EM debt grows to include Invepar, Mogo; Saudi Arabia spreads widen

By Rebecca Melvin

New York, Oct. 15 – Potential issuers continued to announce new deal roadshows for emerging markets debt as the existing market felt a little firmer on Monday following last week’s hard-hitting market rout. But emerging markets debt investors remain jittery and the market is still lower for the month, sources say.

“The market was significantly more stable compared to recent sessions seen last week and prepared to receive new issues as early as tomorrow,” a New York-based market source said of the Latin America region.

A subsidiary of Guatemala’s Corporacion Multi Inversiones wrapped up roadshow meetings on Monday and was on deck for a dollar-denominated green bond of intermediate maturity. CMI is a multinational agro-industrial corporation. In addition the Republic of Peru was said to have received a positive reception during the roadshow of its planned two tranches of notes, including a benchmark-sized offering of sol-denominated euroclearable bonds under Rule 144A and Regulation S and a dollar-denominated note registered with the Securities and Exchange Commission.

Meanwhile, entities that announced new roadshows on Monday were Brazil’s Investimentos e Participacoes em Infraestrutura SA, Latvia’s Mogo Finance SA and Islamic Development Bank. In addition, Indonesia-based PT Perusahaan Listrik Negara’s roadshow schedule emerged.

In secondary market action, Saudi Arabia was a notable underperformer as investors eyed developments regarding the disappearance of Saudi journalist Jamal Khashoggi and potential U.S. response to the international situation. Turkish authorities claim that Khashoggi was killed by Saudi agents, and U.S. Secretary of State Mike Pompeo was dispatched to the Middle East to meet with Saudi King Salman.

The Saudi sovereign curve was “very heavy this morning, but has subsequently come back a lot,” a London-based trader said, quoting Saudi spreads 3 basis points to 5 bps wider, after being 20 bps wider earlier.

In Latin America, the market was quieter than usual – even for a Monday – given that markets remained closed in Argentina, Colombia and Chile in observance of the Dia de la Raza holiday.

“In low-beta space, we mostly saw two-way flow during the morning than turned into better sellers heading into the close,” a market source focused on Latin America said.

Argentina was very strong and those bonds closed up one or two points with some curve steepening, mainly driven by a front-end rally and outperformance there. Brazil was also performing well with bonds for that sovereign up about 0.5 point across the curve.

Overall, emerging markets debt felt a little stronger with the iShares J.P. Morgan U.S.-dollar emerging markets bond ETF up about 0.1% in the session. Later it ticked lower, but it remained at the top of its range for the last trading week. The ETF is still lower since a downturn that began Oct. 1, however.

In the broader markets, U.S. technology stocks continued to move lower on Monday in a continuation of losses from last week’s plunge when higher bond yields spooked investors.

Roadshows in various regions

Mogo Finance and its group companies have mandated banks and scheduled fixed-income investor meetings regarding a proposed tap of its euro-denominated four-year notes. The European meetings are slated to begin on Thursday for a tap of its 9½% notes.

Islamic Development Bank has selected banks and scheduled a series of fixed-income investor meetings for a planned euro-denominated benchmark of five-year Islamic bonds under Regulation S.

Brazil’s Invepar mandated Citigroup, Santander, BB Securities, Bradesco BBI and BTG Pactual as joint bookrunning managers arranging meetings in the United States and Europe for a dollar-denominated benchmark of intermediate notes. The meetings will be held Oct. 17 to Oct. 24. And Indonesia’s state-owned PLN has selected banks and scheduled a roadshow for a proposed offering of 10-year and/or 30-year dollar notes and/or seven- to eight-year euro-denominated notes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.