Brazil’s Oi, Petrobras in focus; ADCB cancels issuance; Asian sovereigns firm; Ghana ahead

By Christine Van Dusen

Atlanta, Sept. 22 – Brazilian corporates remained in focus on Tuesday – after names like Oi SA took a big hit in the previous day’s trading – amid ongoing weakness in commodities and concerns about China's declining economy.

Oi saw its bonds fall as much as 15 points on Monday on news that the company hired an adviser to restructure its debt. But on Tuesday, after Oi denied that it planned to restructure, the bonds recovered some.

Brazil's Petroleo Brasileiro SA was in the news on Tuesday after closing on the first asset sale from its $58 billion divestment plan, designed to chip away at the company’s enormous debt.

Petrobras is selling its natural gas distribution firms, a trader said.

In the secondary market, the company’s 6¼% notes due 2024 were seen Tuesday at about 72 – versus a level of 95 bid at the beginning of August, a trader said.

Meanwhile, Ghana's upcoming offering of up to $1.5 billion of notes received some attention on Tuesday, following word that the deal is likely to get a partial guarantee from the World Bank's International Development Association.

In deal-related news, Abu Dhabi Commercial Bank PJSC canceled plans for an issue of notes due in six years, a market source said.

The deal was announced on Monday and later pulled as a result of softness in the market and liquidity concerns.

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