Lithuania, Buenos Aires delay pricing due to market; Oman to sell seven-, 12-year sukuk

By Colin Hanner

Chicago, May 18 – The weakness felt in Wednesday’s emerging markets session continued through Thursday, a market source said.

Citing a dual-tranche euro-denominated trade expected to come “imminently” to market from Lithuania, a market source said that the pricing delay was not reflective of the country’s ability to garner support for its new issues but the market sentiment right now.

The instability or softness felt in other markets – felt especially on Wednesday in equity markets, which had its worst showing this year – has been attributable to political concerns in the United States that have had aftershocks throughout global markets.

Controversy surrounding U.S. President Trump’s administration took a backseat to Brazil President Michel Temer on Thursday in Latin American emerging markets.

Brazilian bonds were shaken on the day, dropping several points across the board.

The source added that Buenos Aires, expected to price a near-benchmark deal on Thursday, has “already delayed pricing their deal” because of the report.

Just days after selling a combined $4 billion of add-ons, Petroleo Brasileiro SA (Petrobras) saw sharp losses in the morning, though its bonds rebounded in the afternoon session.

In other news, Oman is expected to offer seven- and 12-year sukuk following an investor call next Monday, a market source said.

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