Hungary’s MOL brings new deal to primary; U.S. economic data, ECB comments drag oil down

By Christine Van Dusen

Atlanta, April 21 – Hungary’s MOL Group sold notes on a difficult day for emerging markets assets, with spreads widening and cash prices dropping as oil prices declined on employment data.

“A bit of a rough-go today for global financial assets, with everything sold across the board,” a trader said. “EM credit was not spared.”

Brazil’s five-year credit default swaps spreads closed at 353 basis points from 336 bps, while Mexico’s moved to 160 bps from 149 bps.

High-yield names from Latin America, however, were surprisingly firm, he said.

PDVSA’s 2017s closed almost unchanged at 54.75, Venezuela’s 2027s ticked down to 40.50 from 40.75, and Argentina’s Bonar 2024s finished the day at 113.25 from 112.25.

Market sources were also whispering about a possible issue of dollar bonds from Oman via Citigroup, JPMorgan, MUFG Securities, Natixis Securities and National Bank of Abu Dhabi.

In trading, Lebanon’s new two-tranche issue of $1 billion notes due April 22, 2024 and 2031 traded up on Thursday, a trader said.

In deal-related news, Hong Kong Electric Holdings Ltd. set talk in the Treasuries plus 115 bps area for a dollar-denominated issue of benchmark-sized notes due in 10 years (expected rating: /A-/), a market source said.

On Wednesday, Russia’s VimpelCom Holdings BV – via GTH Finance BV – priced a two-tranche issue of $1.2 billion notes due April 26, 2020 and March 26, 2023, a market source said.

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