Deals from Celulosa Arauco, Unifin, Promsvyazbank; Caixa gives guidance; Russian CDS widen

By Christine Van Dusen

Atlanta, July 15 – Chile’s Celulosa Arauco y Constitucion SA, Mexico’s Unifin Financiera SAPI de CV and Russia’s Promsvyazbank printed notes on Tuesday as tension between Russia and Ukraine pushed the former’s credit default swap spreads a touch wider.

“Yesterday saw reports that a Ukrainian air force plane was shot down, with Kiev placing the blame on the Russians,” a London-based analyst said.

So Russia’s CDS moved out 1 basis point to 2 bps, she said.

The conflict in Israel also weighed on investors’ minds on Tuesday, according to a report from Commerzbank Research.

“The market situation is turning risky, with stretched asset prices and ultra-strong currency against a backdrop of an escalating military situation and the prospect of a ground offensive in the Gaza strip,” the report said.

Also on Tuesday, bonds from Serbia widened as much as 20 bps on the news that the finance minister had resigned.

“Elsewhere in [emerging markets], it’s quiet and relatively unchanged,” the analyst said.

In its new deal, Chilean pulp and forestry company Celulosa Arauco priced $500 million 4½% notes due Aug. 1, 2024 at 98.863 to yield Treasuries plus 210 bps, a market source said.

And Mexican financial institution Unifin sold $400 million 6¼% notes due July 22, 2019 at 99.472 to yield 6 3/8%, a market source said.

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