Morning Commentary: Emerging market spreads stable; South Africa’s Growthpoint pulls deal

By Rebecca Melvin

New York, Dec. 6 – Emerging markets credit was fairly quiet early Wednesday with spreads stable, according to a market source.

In the Middle East region, Islamic Development Bank saw spreads on its notes slightly wider after a tightening registered over the past week. The bank’s nearest dated 1.535% notes due 2018 were wider by 5.4 basis points on the day, compared to 12.5 bps of tightening registered over the past week.

There were no new deals announced in the Central & Eastern Europe, Middle East and Africa region, according to one source. But South Africa’s Growthpoint Properties Ltd. pulled a planned offering of euro-denominated five-year notes.

The action to postpone the offering was viewed as reflective of circumstances internal to South Africa rather than a signal that the emerging capital markets are struggling, the source said.

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