Guatemala’s notes edge up in secondary; EM inflows continue; Norilsk Nickel prices deal

By Rebecca Melvin

New York, June 1 – Guatemala’s new notes found favor among investors on Thursday, as demand for emerging market debt remains strong and fund inflows continue, according to market sources.

Guatemala’s 4 3/8% notes due 2027 traded up by ¼ point to ½ point on Thursday after the Central American nation priced $500 million of the notes (//BB) at a discount to par of 99 on Wednesday.

The Guatemala paper was well received because this country has not issued new paper in a while, a syndicate source said. “It was a new name.”

The size of the book for this deal was more than $1.65 billion.

The prospects for Latin American debt continue to be solid despite some challenges in the region such as a corruption scandal that erupted around Brazilian President Michel Temer last month, which jeopardizes critical economic reforms for that country.

According to data collected by EPFR Global, emerging-market bond funds received inflows of $1.1 billion for the week ended May 24, marking the 17th straight week of net inflows.

Elsewhere in the primary market, Russia’s OJSC MMC Norilsk Nickel priced $500 million of 3.85% five-year bonds at par Thursday. Latvia priced €350 million of notes in add-ons to existing tranches due in 2026 and 2036. And Maldives debuted in the sovereign debt arena with a $200 million issue of 7% five-year notes.

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