Morning Commentary: EM debt spreads still wider but ‘holding OK’; Israel Chemicals announces deal

By Rebecca Melvin

New York, May 14 – Emerging markets debt spreads remained somewhat wide but were “holding OK” in quiet trading, a London-based trader said on Monday.

The asset class has been under fire for the last couple of weeks amid declines in key currencies, including the Turkish lira and Argentine peso.

Egypt, which was a bright spot in Friday’s session, continued to firm on the back of an upgrade from S&P Global Ratings. The ratings agency upgraded the long-term foreign and local currency sovereign credit ratings of Egypt to B from B- and affirmed the short-term foreign and local currency sovereign credit ratings at B.

The Egypt 4¾% notes due 2026, which priced on April 9, were quoted at 97.62 bid, 98.62 offered on Monday, compared to 96¾ bid, 97¾ offered on Friday. Its sister tranche, the Egypt 5 5/8% notes due 2030, were quoted at 97.75 bid, 99 offered on Monday, compared to 96.62 bid, 97.62 offered on Friday.

Meanwhile, Israel Chemicals Ltd. joined the forward deal calendar with a planned offering of dollar-denominated notes of 20- to 30-year duration.

Roadshow meetings regarding the deal will be held in Tel Aviv, London, New York and Boston beginning on Tuesday.

BofA Merrill Lynch, Barclays, BNP Paribas and HSBC are joint lead managers and bookrunners organizing the meetings for the Rule 144A and Regulation S notes.

Israel Chemicals is also tendering for its $800 million of 4½% notes due 2024.

© 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.