Primary hosts Isbank, Citic, Korea Resources; Lat-Am spreads widen, Middle East’s tighten

By Christine Van Dusen

Atlanta, Oct. 23 – Turkey’s Turkiye Is Bankasi AS (Isbank), China’s Citic Securities Co. Ltd., Chile’s Sociedad Quimica y Minera de Chile SA (SQM) and Korea Resources Corp. sold notes on Thursday as Middle Eastern bond spreads tightened.

“Lower U.S. Treasury prices means one thing – tighter spreads,” a London-based trader said. “Plenty of action in the Qatar sukuk space, this time the 2023s. It does feel like some paper has found its way into the market there.”

Bonds from Bahrain closed between 5 basis points and 8 bps tighter, as did those on the Dubai curve.

“Prices were softening up a little into the close, given the rates move, but spreads were still tighter,” he said.

From Latin America, sovereign spreads started Thursday’s session wider by about 3 bps as the Treasury moves fueled some selling, a New York-based trader said.

High-yield Latin American names got a boost along with other risk assets, he said, with PDVSA’s 2024s moving up from 46½ to 47 and its 2026 from 45¾ to 46.

In deal-related news, India’s Tata Motors Ltd. gave guidance while roadshows were set for Kazakhstan’s KazMunaiGaz National Co., South Africa’s MTN Group Ltd. and Peru.

Market sources were also whispering about a possible issue of $450 million of notes from Lebanon.

© 2015 Prospect News.
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