Angola prices $500 million tap of 2048 notes; Dominican Republic 2028 notes trade well

By Rebecca Melvin

New York, July 16 – Emerging markets debt has shown signs of life despite an onslaught in recent weeks related to U.S. dollar strength, currency woes and international trade war worries, among other things.

The Republic of Angola on Monday launched and priced a $500 million tap of its 9 3/8% notes due 2048 on Monday at 102.76 to yield 9.1%, according to a syndicate source.

The launch pricing was tight compared to initial price talk earlier Monday in the area of 9.3%.

The new notes will be consolidated and form one series with the initial 2048 notes, which priced on May 2 and of which there is $1.25 billion outstanding.

In secondary action, a market player pointed to continued strength in the new Dominican Republic 6% notes due July 2028.

“From a market standpoint, the Domrep deal tells us there is appetite to add exposure despite consecutive weeks of outflows. The deal is performing very well in the secondary,” the New York-based market source said.

The $1.3 billion 10-year deal priced at par on Thursday, on top of yield talk and inside of guidance in the 6¼% area, sources said.

On Monday the Dominican Republic 2028s were bid at 101.077, which is a yield of about 5.85%, and with a 10 basis points curve to the outstanding 2027 notes with a 5¾% yield.

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