Colombia under pressure; Mexico mixed; emerging markets stare down lower oil; EuroChem on tap

By Rebecca Melvin and Colin Hanner

New York, June 16 – Selling hit Colombia’s sovereign debt on Friday, particularly the 2027 notes and the 2045 notes, which priced earlier this year. The spread on the near-dated 2027 bonds increased by about 6 basis points this week, hurt either by a tumble in oil prices or because of the U.S. Federal Reserve’s interest rate increase and shifting policy, market sources said.

Colombia’s medium-term notes were coming under pressure following a steepening of the curve over the last six months. Meanwhile, the shorter-dated bonds, including the 2021 and 2023 notes, remained hard to find, a Latin America credit trader said.

There were some sellers of Mexico’s 3 5/8% notes due 2022 and 4.15% notes due 2027 this week, while the Mexico 2021, 2023 and 2025 notes remained well bid.

“[New issues] varied by geography this week” in Russia, Africa and Turkey “and varied by currency” in dollars and euros, “so [there was] a broad range of CEEMA debt on the week,” a market source said.

Moscow-based fertilizer company EuroChem Global Investments Ltd. is expected to come to market with a benchmark offering of dollar-denominated, four-year unsecured senior notes next week.

Also next week, Belarus will begin an investor roadshow for a dollar-denominated offerings of five- and 10-year notes, a market source said.

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