Morning Commentary: Market players eye Pemex; Safra on tap; Nostrum, First Abu Dhabi join calendar

By Rebecca Melvin

New York, Feb. 1 – Market players were taking a look at Petroleos Mexicanos SAB de CV’s announcement on Thursday that it will price new 10-year and 30-year notes as part of a refinancing.

“We took a look at that this morning, and got an understanding of the trade,” a New York-based market source said.

A second source said the new issue premium for the new Pemex notes would likely be pretty tight if last week’s Petroleo Brasileiro SA deal was any indication since the Petrobras notes came 2 basis points inside fair value.

Also in the Latin America region on Thursday, Brazil’s Banco Safra SA was talking a dollar-denominated benchmark offering of five-year notes to yield around the mid 4% area, a market source said.

Elsewhere, Nostrum Oil & Gas plc will begin to roadshow a dollar-denominated offering of seven-year notes on Friday, which will be sold under Regulation S and Rule 144A, and First Abu Dhabi Bank PJSC selected bookrunners for a planned offering of dollar-denominated five-year Islamic bonds. Meetings will be held on that deal in London on Monday.

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