Greenland Hong Kong sells notes; Lat-Am bonds suffer; Chexim trades better; VEB mulls deal

By Christine Van Dusen and Aleesia Forni

Atlanta, July 31 – China’s Greenland Hong Kong Holdings Ltd. printed notes on Thursday as most bonds from Latin America moved wider following Argentina’s default, which was the sovereign’s second in the last 12 years.

Brazil’s Petroleo Brasileiro SA (Petrobras) moved out the most, a New York-based trader said, with dollar prices dropping significantly since Wednesday’s open.

Mexico’s Cemex SAB de CV also suffered, he said. “Bids pulled way back on that curve.”

And Colombia’s Grupo Aval Acciones y Valores SA, Colombia’s Ecopetrol SA and Brazil’s Braskem SA saw prices fall.

Looking to Asia, spreads were mostly mixed curing the morning, though the recent offering from Export-Import Bank of China (Chexim) was trading better.

A market source quoted the bank’s $1.5 billion of 2½% notes due 2019 at about 3 basis points tighter at 89 bps bid.

“Overall, it was a day of profit-taking in [emerging markets] fixed income, with long dated [Hungary government bonds] looking particularly vulnerable to a shift toward risk-off sentiment,” according to a report from Erste Group Research.

Meanwhile, primary activity in the emerging markets space remained mostly quiet, save for the new deal from Greenland Hong Kong Holdings.

Russia’s Vnesheconombank is considering an issue of renminbi-denominated notes, a market source said.

No other details were immediately available on Thursday.

The Moscow-based lender previously announced plans for between $1 billion and $1.5 billion of notes.

© 2015 Prospect News.
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