Emerging markets quiet; Buenos Aires, ADB, Papelero Scribe price; Unibanco taps dealers

By Christine Van Dusen

Atlanta, March 30 - Emerging markets were exceptionally quiet Tuesday as investors and issuers awaited important economic data and looked ahead to the Easter holiday, market sources said.

"Yesterday it was about as dull as it ever gets, and today is not much better," a London-based trader said. "It's Easter time, so there's a fraction of normal inquiry and turnover."

Overall, things were "pretty stable," a New York-based market source said. It "looks like the investment-grade stuff in Asia has been doing well. That tightened. But this week is pretty much a non-week, because it's Holy Week around the world. And with payrolls on Friday, it's just a choppy, messy week. I don't think guys are doing much."

By mid-afternoon, the JPMorgan Emerging Markets Bond Index Plus was 246 basis points, tighter by 2 basis points. And the Emerging Markets Bond Index Global was 257 bps, tighter by 3 bps.

"Broadly, the market's a little weaker," the New York source said. "The things that are Treasury sensitive - long-dated, high-quality bonds - are weaker because Treasuries are slipping, six or seven ticks below where they closed."

Trading for the day was light as investors watched for Wednesday's release of the ADP National Employment Report, which measures employment at about 360,000 U.S. businesses in private industrial sectors, as well as the Labor Department's upcoming release of payroll figures. This follows the Conference Board's announcement that consumer confidence climbed in March after February's fall, and the news that home values decreased slightly in January.

"I think we'll be quiet ahead of" the economic announcements, the London trader said.

Primary sees activity

Tuesday did see some pricings, however.

The city of Buenos Aires priced $475 million 12½% bonds due 2015 at par.

Manila, the Philippines-based development finance institution Asian Development Bank priced A$438.6 million 5½% notes due 2016 at 97.957 to yield 6.1225%.

And Mexico's Grupo Papelero Scribe priced $300 million 8 7/8% notes due 2020 at par, market sources said.

Scribe "had a high yield," the New York-based source said. "It did OK, but it's fading at the end. It was up about a point and now it's just ½ to 3/4. That's probably because of the shortened week."

Also on Tuesday, Brazil's Itau Unibanco mandated bookrunners for a planned issuance of 10-year tier 2 notes. A roadshow begins April 5 and will travel from London to the United States and Asia.

Buenos Aires prices notes

Buenos Aires priced $475 million 12½% notes due April 6, 2015 (B2/B-) at par, according to a market source.

Credit Suisse was the bookrunner for the Rule 144A and Regulation S deal, which was talked at 12½% to 13%.

Proceeds will be used to fund infrastructure investments, projects in the city's hospitals, road developments, urban hygiene programs, education and expansion of the subway system.

Asian Development Bank prices

Asian Development Bank priced A$438.6 million 5½% notes due Feb. 15, 2016 at 97.957 to yield 6.1225%, according to a company filing.

The bookrunners for the deal were Australia and New Zealand Banking Group Ltd., RBC and the Toronto-Dominion Bank.

The notes will be consolidated to form a single series with the A$400 million 5½% notes due Feb. 15, 2016 that were issued on Feb. 15, 2006.

Grupo Papelero Scribe prices

Grupo Papelero Scribe priced $300 million 8 7/8% notes (Ba3/BB-) due April 7, 2020 at par, according to a market source.

Credit Suisse was the bookrunner for the issue, which includes a five-year non-call provision.

Grupo Papelero Scribe is a Mexico City-based pulp producer and manufacturer of printing and writing paper.

Unibanco taps bookrunners

Brazil's Itau Unibanco has mandated Goldman Sachs, Itau and Morgan Stanley as bookrunners for 10-year tier 2 notes (expected Baa2/BBB-) and will launch a roadshow on April 5, a market source said.

The roadshow will be held in London and cities in the United States and Asia.

Itau Unibanco is a banking company based in Sao Paulo.

© 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.