Colombia notes trade up; Venezuela active, flat as political crisis unfolds; Turkey prices

By Rebecca Melvin

New York, Jan. 24 – Latin America captured a lot of attention of emerging markets debt players on Thursday as Colombia priced a dual tranche of notes that attracted record demand, Termocandelaria Power Ltd. priced a deal that had been on the primary calendar and as a political crisis unfolded in Venezuela, rekindling speculation about its international bonds, which have been virtually cordoned off from the market amid that country’s slow economic meltdown.

Colombia’s newly priced $2 billion of new 30-year notes and tap of its 4½% global bonds due 2029 traded higher, with the bonds heard about 0.75 point higher and about 5 basis points tighter on spread, according to a New York-based trading source.

Colombia priced $1.5 billion of the new 5.2% notes due 2049 at 99.705 to yield 5.22%.

The $500 million tap of the 2029 notes priced at 100.429 to yield 4.446%.

Termocandelaria, a power generation company based in Soledad, Colombia, priced $410 million of 7 7/8% notes due 2029 at par.

Meanwhile, Venezuela’s Corporacion Andina de Fomento (CAF) priced €750 million of 0.625% five-year notes, according to a market source.

Also in the primary market on Thursday, Turkey announced and priced €1.25 billion of new 4 5/8% notes due 2025 at 99.360 to yield 4¾%, or a spread of 446 bps over mid-swaps.

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