Novolipetsk bond edges a bit higher after issue; Ukraine, Slovenia on tap; LatAm strong

By Rebecca Melvin

New York, Sept. 15 – OJSC Novolipetsk Steel (NLMK)’s newly priced 4% bond edged up on Friday after the Russian steel maker priced $500 million of the seven-year bonds at par.

The new Rule 144A and Regulation S notes were seen at 100.15 bid, 100¼ offered, a London-based market source said.

Another $500 million deal on Friday was priced by South American-focused agricultural company Adecoagro SA, which brought 6% 10-year senior unsecured notes at par.

Volume of new issuance in emerging markets has been strong so far this month since market players regrouped following the summer holidays. The higher volume pace was anticipated to continue next week, sources said, with something of a focus on Eastern Europe and the CIS region early in the week, with issuance expected from Ukraine, Slovenia and Russia.

Back in secondary markets, trading slowed into the weekend, but pricing remained strong, sources said.

The market is “constructive,” a London-based market source said, so new deals should continue, and the secondary should remain strong.

In Latin America, it “was a slow day” on Friday, but the market remains strong, a New York-based source said.

Venezuela and Petroleos de Venezuela SA were quiet as investors awaited word that a payment on Venezuela’s 9¼% 2027 notes due Friday had been paid.

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