Morning Commentary: Abu Dhabi Crude Oil Pipeline tranches add after initial drop; Inkia on the road

By Rebecca Melvin

New York, Oct. 27 – Abu Dhabi Crude Oil Pipeline LLC’s newly priced dollar notes traded up on Friday after an initial dip following the company’s pricing of $3.04 billion of the senior notes in 12-year and 30-year tranches, a London-based market source said.

The new Abu Dhabi 3.65% notes due 2029 dropped below issue price before moving up to 99.90 bid, 100.5 offered.

The new Abu Dhabi 4.6% notes due 2047 also traded below their issue price first, before moving up to 100.5 bid, 101.25 offered.

The Abu Dhabi pipeline bonds saw strong demand from investors because it is very close to the credit of Abu Dhabi and a crucial entity for the government, a market source said.

Elsewhere, JSC NC Kazakhstan Temir Zholy announced a planned dollar-denominated benchmark offering of notes, mandating banks JPMorgan and Renaissance Capital as joint bookrunners to arrange a series of fixed-income investor meetings regarding the deal in Kazakhstan, Europe and the United States beginning on Tuesday.

Adding to the growing calendar in Latin America, corporate issuer Inkia Energy Ltd. is beginning fixed-income investor meetings on Friday for a proposed offering of 10-year senior unsecured notes (expected ratings: BB-/BB), according to a market source.

And the Republic of Argentina has scheduled fixed-income investor meetings next week for the planned issue of euro-denominated bonds in two tranches.

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