Angola’s 2048 notes edge higher after add-on; MENA spreads widen; Latin America quiet

By Rebecca Melvin

New York, July 17 – The Republic of Angola’s 9 3/8% notes due 2048 traded “OK” on Tuesday, edging up after the sovereign priced a $500 million add-on to the issue that originally priced on May 2, according to a market source.

The new $500 million of notes represented the first new paper issued in the Middle East and Africa region in the past month, and the new notes priced at 102.76 to yield 9.1%.

The 9 3/8% issue traded as high as 103 7/8 on Tuesday before slipping back to 103¼ bid, 103¾ offered.

“Angola is doing OK,” a London-based trader said, adding that overall the MENA region was quiet.

MENA spreads were slightly wider owing to lower oil prices this week, the trader said. But overall the emerging markets debt space was called OK.

The Latin America region was quiet again on Tuesday as vacation mode has dampened activity. But there are issuers in the pipeline and sentiment has improved, so the expectation is that when market players return from holidays it will be a very active market, a New York-based syndicate source said.

Aruba was reported to have mandated Credit Suisse and CIBC to lead investor calls ahead of a potential private placement of bonds, according to a market source.

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