IDB sells notes; investors await U.S. data; Lat-Am spreads tighten; Montenegro plans deal

By Christine Van Dusen

Atlanta, March 3 – Islamic Development Bank advanced a deal on Thursday during a mixed session for emerging markets assets, as investors awaited the Friday release of non-farm payrolls data from the United States.

In trading on Thursday, the new issue of notes from Turkey – $1.5 billion 4 7/8% notes due 2026 that priced Wednesday at 98.977 to yield 5% – traded slightly below reoffer.

The notes were spotted at 98.80, a trader said.

“The Turkey sovereign is not really setting the world on fire,” another trader said.

Looking to Latin America, spreads tightened and cash prices moved higher, with Brazil an outperformer amid positive political developments, a New York-based trader said.

Brazil’s five-year credit default swaps spreads tightened to 422 basis points from 449 bps, while Mexico’s moved to 177 bps from 184 bps.

“Cash prices continue moving higher as spread tightening and a back-end U.S. Treasury rally has bonds bid throughout the session,” he said. “Latin American high yield finishes mixed on the day.”

In deal-related news, Turkey’s Koc Holding AS will set out on Friday for a roadshow to market a benchmark-sized issue of dollar-denominated notes, a market source said.

Montenegro is planning to issue euro-denominated notes with bookrunners Deutsche Bank, Citigroup, Erste Group and Societe Generale CIB, according to a filing from the sovereign.

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