Polyus Gold prints notes; Fondo Mivivienda, Equate, ADB advance deals; Middle East eyed

By Christine Van Dusen

Atlanta, Feb. 1 – Polyus Gold International Ltd. sold notes on Wednesday and several issuers advanced deals amid relatively stable oil prices and a continued focus on President Donald Trump’s cabinet appointments, announcements and executive orders.

“The relative stability of oil in this 50.50 to 53 range, combined with plenty of maturing debt, only a handful of new issues and still solid local demand for paper, has meant one thing – spread tightening,” a trader said. “And of course on days when rates sell off, we just tighten. Dealers lose paper and probably don’t run as much risk as they have in years gone by, and hence are happy replacing shorts even if spreads look unappealing.”

Against this backdrop, Peru’s Fondo Mivivienda SA continued a roadshow, Kuwait’s Equate Petrochemical Co. KSCC planned a marketing trip and Philippines’ Asian Development Bank (ADB) sought euro-denominated issuance.

In trading on Wednesday, Middle Eastern issuers entered February with outperformance under their belts. Lebanon’s paper in January was a standout, as were many perpetual issues and long-end bonds, he said.

“Lebanon’s was a superb move tighter with a steepening bias,” he said. “They have a decent maturity in the middle of March. Certainly their curve is ripe for some issuance to help some of the sticky bonds maybe come out, trade, show relative value. Spreads on some 2018 to 2020 bonds are the best part of 75 bps to 95 bps tighter over the month.”

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