EM debt spreads mixed to lower; Kazakhstan notes on tap; Oman 2025 sukuk edges par

By Rebecca Melvin

New York, Oct. 29 – Spreads on emerging markets debt were mixed to lower on Monday after widening out on Friday. The tone was subdued to start the week during which books will close on what has been a tough month for both EM debt and the broader markets.

There were no new deals heard to be announced in the primary market in the Central and Eastern Europe, Middle East and Africa region or Latin America, according to market sources.

But roadshow meetings for the Republic of Kazakhstan’s euro-denominated senior unsecured benchmark offering of 10-year notes began in Europe, with investor response to the planned deal expected to be positive.

“I think it should go pretty well ... the market has been waiting for this one for a while so investors should be ready to engage. It will all come down to pricing and if the issuer is OK to pay a higher new issue premium,” a London-based market source said.

The Kazakhstan Rule 144A and Regulation S deal will be issued subject to market conditions with a dual listing on the London Stock Exchange and Astana International Exchange.

In secondary market action, the new Oman sukuk due 2025, of which $1.5 billion priced on Thursday, was said to be seeing good volume and was quoted at just over par in the context of 100.12 bid, 100.22 offered.

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