Primary could soon see Bharat Petroleum, DIB, Warba, Fibria; EM sees demand in trading

By Christine Van Dusen

Atlanta, Jan. 4 – The primary market perked up on Wednesday – with issuers like India’s Bharat Petroleum Corp. Ltd., Bahrain’s Gulf International Bank BSC and Dubai Islamic Bank PJSC lining up deals – while investors continued to await the December minutes from the Federal Open Market Committee.

Also advancing new issues were Kuwait’s Warba Bank, Philippines’ Asian Development Bank (ADB) and Brazil’s Fibria Celulosa SA.

“Markets kicked off 2017 in a solid fashion, supported by fairly strong macro reads across the globe,” a London-based analyst said.

Demand was strong for emerging markets assets, overall, a London-based trader said.

“Textbook start to the year with demand pretty much across the board over the opening two days of proceedings,” he said. “Once again we find ourselves in a very resilient, technical and supportive market.”

Looking to the Middle East, bonds from Bahrain traded “very well,” he said.

The sovereign’s 2024 was a “little rich on the curve,” he said. “A slew of buyers on long-dated names. The market remains very well supported, perhaps some sovereign paper around on Qatar 2021 2026 and 2046s into the close.”

Oman’s 2021s and 2026s have moved 5 basis points and 13 bps tighter, respectively, on the month.

Market sources on Wednesday were whispering about a possible roadshow from South Korea and a long-dated, euro-denominated deal from Israel.

© 2015 Prospect News.
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