Indian bonds see good demand; Pacific Rubiales rises with oil; Egyptian bank to issue notes

By Christine Van Dusen

Atlanta, March 20 – High-grade paper from Asia saw activity pick up in the afternoon on Friday, mostly driven by trading of bonds from India, while Pacific Rubiales Energy Corp. undulated and National Bank of Egypt SAE planned a new issue.

“Had good demand out of Europe, as we were lifted on short-dated Indian paper,” a London-based trader said. “The rest of the high-grade space is going out relatively unchanged.”

China-based Yuzhou Properties Co. Ltd. saw its bonds bounce back sharply after the company denied involvement with the vice governor of Fujian, who is being investigated for graft.

“However, despite the late the rally, the curve is still closing 2 points lower,” he said. “We traded two-way on the Yuzhou 2019s.”

In other trading, emerging markets-focused Pacific Rubiales saw its prices rise on Friday at the end of a difficult week, a London-based trader said.

The energy company on Monday started out on weak footing after its bonds tumbled about 6 points on oil prices. Then Ecopetrol SA announced it was looking for other operators of the Rubiales field and not continuing its contract with Pacific Rubiales.

Completing the trifecta, Pacific Rubiales released quarterly earnings that included a loss that exceeded analysts’ expectations.

The company’s 5 5/8% notes due 2025 that priced at 99.045 dropped significantly, then gained back some ground on Friday to trade at 55.50 bid, 56.75 offered on the move in oil prices, he said.

© 2015 Prospect News.
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