EM debt starts week flattish amid uncertainty; Oman to price dollar sukuk; Ukraine on tap

By Rebecca Melvin

New York, Oct. 22 – Emerging-markets debt started the week generally flat on low volume with a number of deals expected to price this week and a couple more joining the calendar on Monday, as investors eyed uncertainty on a number of fronts internationally with potential to affect credit.

The yield curve for Oman was a couple of basis points wider, a London-based trader said, after the Gulf Cooperation Council member selected banks and scheduled a fixed-income investor call on Tuesday for a new dollar-denominated seven-year Islamic bond, or sukuk.

Ukraine’s sovereign curve was about 5 bps wider on the day but largely stable, a second source said, after the Eastern European country announced a new mandate and roadshow for a U.S. dollar-denominated benchmark of 10-year notes, as well as a possible long five-year tranche as part of the offering.

Among deals that could price in the coming days are Islamic Development Bank’s euro-denominated benchmark of five-year sukuk, finishing roadshow meetings on Tuesday; Latvia-based used auto-financing concern Mogo Finance SA’s tap of euro-denominated 9½% four-year notes, subject to market conditions; and Tunisia’s euro-denominated five-year note benchmark.

The Latin America region was quiet on Monday after several deals priced last week, but Chile’s Empresa Electrica Cochrane SpA pulled its proposed $725 million of 16-year notes amid a renewed spate of market turbulence.

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