InterCement Brasil, Greece bring new deals; EM investor sentiment weakens

By Christine Van Dusen

Atlanta, July 10 – Brazil’s InterCement Brasil SA sold notes on a weaker Thursday, as evidenced by what market sources described as a tepid reaction to Greece’s new issue of €1.5 billion three-year notes.

The sovereign’s deal came to the market with a 3½% yield via bookrunners BofA Merrill Lynch, Citigroup, Deutsche Bank, Goldman Sachs and JPMorgan.

“The deal is struggling to gather investor interest,” a London-based trader said.

Contributing to the overall negative tone was word that Banco Espirito Santo SA’s shares had been suspended from trading, just the latest negative headline for the Portuguese financial institution.

The Espirito Santo news was “a wake-up call,” according to a report from Erste Group Research.

“[Emerging markets] sentiment this morning is being affected by European concerns, mainly related to Portugal,” a London-based analyst said. “In Ukraine, the EU has added a further 11 names to the sanctions list, while President Obama is facing increasing pressure to launch further sanctions himself.”

In trading on Thursday, Latin American bonds were weak at the start of Thursday’s session but ended nearly unchanged amid lighter flows and more selling than buying, a New York-based trader said.

Venezuela, for one, fell as much as 50 cents early in the day but finished at the previous night’s levels.

Argentina bonds, however, opened stronger and then saw some profit-taking, which pushed levels down from the previous night’s close, he said.

© 2015 Prospect News.
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