National Bank of Kuwait, Hikma sell bonds; Pacific Rubiales downgraded; Ukraine gets support

By Christine Van Dusen

Atlanta, April 1 – National Bank of Kuwait and Jordan’s Hikma Pharmaceuticals plc sold notes on a Wednesday that saw Brazil’s Pacific Rubiales Energy Corp. remain in the news after a ratings downgrade and amid continuing rumors about an upcoming meeting with investors.

Standard & Poor’s knocked Pacific Rubiales down to BB/negative from BB+/watch negative.

“May have spooked some people, because the bonds got hit immediately on the news, in spite of oil having its strongest day in two months,” a London-based trader said. “Bonds are down anywhere between 50 cents and 1 point.”

Meanwhile, market-watchers were buzzing about a possible investor meeting, during which the company could discuss ways to restructure its debt.

In other news, sovereign bonds from Ukraine have seen support so far this week, according to Fyodor Bagnenko, a fixed income trader with Dragon Capital.

The curve was stronger by about a ½ point, he said.

“In the quasi- sovereign space, [OJSC Oschadbank’s bonds] were better bid while [State Administration of Railways Transport of Ukraine’s (Ukrzaliznytsia) bonds] were offered,” he said. “Buyers emerged in corporate bonds but were reluctant to chase the market higher.”

Also on Wednesday, market sources were whispering about a possible issue of notes from Ecuador, given that the size of the sovereign’s recent issue –$750 million 10½% notes due 2020 that priced at par – fell short of expectations.

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