Paraguay sells notes; investors watch Argentina, Gaza, Russia, Ukraine; Mriya defaults

By Christine Van Dusen

Atlanta, Aug. 4 – Paraguay printed notes on Monday as the market remained focused on Gaza – where a brief truce ended – on the recent default in Argentina and on the talks between Russia and Ukraine.

“With Argentina’s default, new sanctions against Russia and troubles surrounding Banco Espiranto Santo we are beginning to see risk-off in some areas of [emerging markets] while the global sentiment slowly deteriorates,” according to a report Erste Group.

Also on Monday, investors were eyeing Ukraine-based Mriya Agro Holdings, which defaulted on some debt, according to a report from Eavex Capital.

“The company said its financial condition has been deteriorating in recent months because of depressed prices for grains, a spike in prices for inputs and problems with raising working capital,” the report said.

The company will conduct a review of its businesses and hire financial advisors to revise the business plan and restructure the balance sheet, Eavex said.

In response, Mriya’s 2018 eurobonds have lost as much as 20 percentage points.

The news is proving negative for other agricultural companies in Ukraine, including Ukraine-focused UkrLandFarming plc.

Meanwhile, the local debt market in Russia suffered as a result of recent sanctions from the United States and European Union, according to a report from UFS Investment Co.

Bonds from Hungary continued to weaken, the Erste report said, while local-currency notes from Romania traded higher in yield.

© 2015 Prospect News.
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