EM credit softens; Saudi Arabia, Lebanon, Oman weaker; Mexico’s Grupo Bimbo prices notes

By Rebecca Melvin

New York, Nov. 7 – Emerging market pricing action was soft on Tuesday with some real damage done in some credits in the Middle East. But new issues continued to price.

Dubai’s Emirates NBD priced $750 million five-year notes (expected rating: A3//A+), which were last talked ahead of pricing at a yield spread of mid-swaps plus 125 basis points.

The Republic of Lithuania was also heard to have priced a €350 million tap of its existing 0.95% notes due 2027 and a €200 million tap of its 2.1% notes due 2047.

In Latin America, Grupo Bimbo SAB de CV priced $650 million of 30-year notes (expected ratings: Baa2/BBB/).

Also in primary market action, African Development Bank announced it is planning to price dollar-denominated five-year bonds.

Meanwhile, the secondary market was described to have had “an ugly session, with pressure on the market across the board,” according to a London-based trader.

Saudi Arabia notes due 2028 closed Tuesday at 98 3/8 bid, 98 5/8 offered and were wider by about 10 bps.

Lebanon’s 2018 bonds traded at 98 intraday. Lebanon 2022s were offered at about 92˝ and were wider by 200 bps on the month.

Iraq’s notes were wider by about 20 bps, Jordan sovereigns were wider by 12 to 15 bps, and Oman was wider by 15 to 20 bps.

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