Issuance from Singapore’s OCBC, Dominican Republic; Lat-Am notes trade; Portugal worries fade

By Christine Van Dusen

Atlanta, July 11 – Singapore’s Oversea-Chinese Banking Corp. Ltd. and the Dominican Republic sold notes on Friday as most of the day’s trading action focused on recent issues from Latin America.

The bonds that Brazil’s Klabin SA sold this week – 5¼% notes due 2024 that priced at par – were stuck below fixed reoffer while Chile-based Colbun SA’s recent 4½% notes due 2024 that priced at 98.615 remained steady, a New York-based trader said.

The 4¼% notes due 2025 that Chile’s Transelec SA sold at 98.982 to yield 178 basis points over Treasuries were spotted at about 177 bps after drifting to about 180 bps on Thursday, he said.

High-grade issues from the region were a bit weak, possibly due to the uptick in supply.

“Many credits seem stuck in the mud or a tad weaker, but consistent selling seen from some real-money accounts earlier in the week was absorbed nicely,” he said.

Also on Friday, roadshows were scheduled for Singapore’s Otto Marine Ltd., Senegal and Taiwan’s Advanced Semiconductor Engineering.

Overall, investor sentiment was a bit better on Friday, as the market finished digesting the news that Portugal’s Banco Espirito Santo’s shares would be delisted.

“During the European morning session today, European assets have retraced much of yesterday’s pessimism,” according to a report from Barclays.

© 2015 Prospect News.
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