Ethiopia, Chalco bring new deals; Russia, Ukraine in focus; Kuwait Projects outperforms

By Christine Van Dusen

Atlanta, Dec. 4 – Ethiopia and Aluminum Corp. of China Ltd. (Chalco) sold bonds on a moderately active Thursday for emerging markets assets.

Notes from Russia declined into Thursday as investors showed concern over the sovereign’s economic health. That hit credit default swaps spreads, a trader said.

Likewise, bonds from Ukraine have so far this week declined, said Svitlana Rusakova of Dragon Capital.

Bonds from the Middle East faded as the session went on, a London-based trader said.

He was active in notes from Dubai-based DPWorld and Etisalat, as well as Bahrain.

“Bahrain is 25 bps to 28 bps wider on the week now, however, the one ray of light is some support on the 2022s in the past two sessions,” he said.

Dubai’s Damac Real Estate Development Ltd. and Dar al-Arkan Holdings widened on the week, moving out between 35 bps and 60 bps, he said.

“They both definitely score a ‘D’ on their report card this week,” he said. “Kuwait has obviously retraced as well.”

Perpetual notes from the Middle East were quiet, he said, though Abu Dhabi Islamic Bank saw its bonds traded in “fair size” at 104½.

The best-performing bond of the week, so far, is Kuwait Projects Co.’s 2019s, which tightened 25 bps.

“Laggard of the week? Kuwait Energy’s 2019s,” he said, blaming the change in oil prices.

© 2015 Prospect News.
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