Issuance from Turkey, Sritex; EM assets move higher, tighter; Oman, Sovcomflot advance deals

By Christine Van Dusen

Atlanta, June 1 – Turkey and Indonesia’s PT Sri Rejeki Isman Tbk (Sritex) were among the issuers to sell notes on Wednesday as solid economic news from the United States first hurt emerging markets assets, then boosted them up.

“The reversal showed that maybe good news really is good news,” a New York-based trader said. “Latin American credit stages an impressive comeback. The market opened very weak and it looked as if we were in for a selloff, but as equities and oil pared losses, EM credit regained footing.”

Five-year credit default swaps spreads from Brazil closed at 360 basis points from 365 bps, while Mexico’s moved to 170 bps from 172 bps.

In other trading, the new issues that have come from the Middle East so far this year have been a “real mixed bag,” a trader said.

“In the laggards’ camp is Qatar’s five- and 10-year,” he said, also pointing to DP World’s 2023s.

Outperformers include Kuwait-based Boubyan Bank’s perpetuals and Emirates Islamic Bank’s 2021.

Russia’s PAO Sovcomflot will set out on Thursday for a roadshow to market a dollar-denominated issue of benchmark-sized notes alongside a tender offer, a market source said.

Oman will set out on Thursday for a roadshow to market a dollar-denominated issue of benchmark-sized notes, a market source said.

© 2015 Prospect News.
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