Emirates NBD sells notes; RioPrevidencia plans bonds; Brazilian corporates dominate flows

By Christine Van Dusen

Atlanta, Nov. 12 – Dubai’s Emirates NBD sold notes on a slightly weaker Wednesday for many emerging markets assets, with spreads widening for Latin American names.

Dominating the limited flows on Wednesday morning were bonds from Brazil-based Petroleo Brasileiro (Petrobras) – which announced that its oil production from Brazil reached an all-time high in October – and Colombia’s Ecopetrol SA.

Both companies saw their bond spreads move wider on the short and long ends of the curve, a New York-based trader said.

Chile’s Masisa SA saw its notes hold at a 104-mid handle, he said, with very little activity.

Bonds from Mexico-based Cemex SAB de CV moved down, even after signing agreements with Switzerland-based competitor Holcim.

“But seeing good support at the lower levels,” he said.

Some Brazilian high-grade names were able to hold on to recent gains but others – like Odebrecht SA – lagged, he said.

And Brazil-based telecommunications company Oi SA’s bonds improved on the news that it had rejected a takeover offer for a Portuguese company in which Oi has an ownership stake.

Oi’s bonds moved up ˝ point to 5/8 point, he said.

Brazil’s RioPrevidencia is looking to issue dollar-denominated notes due in January of 2027, a market source said.

Following a series of investor calls, the notes will be issued by special-purpose vehicle Rio Oil Finance Trust.

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