EM assets weaken amid uncertainty about BOJ, Brexit; Eldorado Brasil, Cosan see activity

By Christine Van Dusen

Atlanta, June 10 – Emerging markets assets ended the week on weaker footing as investors watched the Bank of Japan for further monetary easing and waited to see whether the United Kingdom would leave the European Union.

“The next few weeks have plenty of headline risk,” a trader said. “Risk-off may continue to prevail until there is more clarity on these potentially seismic events.”

Said another trader: “Weak session for global risk assets, as emerging markets credit gets pulled wider and lower.”

On Thursday, Brazil’s Eldorado Brasil Celulose SA priced $350 million 8 5/8% notes due June 16, 2021 at 99.008 to yield 8 7/8%, a market source said.

BofA Merrill Lynch, Credit Suisse, BB Securities and Santander were the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used to repay existing debt and for general corporate purposes.

Eldorado is a Sao Paulo-based pulp producer.

Brazil's Cosan Overseas Ltd. priced $500 million 7% notes due Jan. 20, 2027 at 98.163 to yield 7¼%, a market source said.

BofA Merrill Lynch, Bradesco BBI, Citigroup, HSBC, Itau and Santander were the bookrunners for the Rule 144A and Regulation S deal.

The proceeds will be used to pay the tender of any 2018 and 2023 notes and for general corporate purposes.

Cosan is an ethanol and sugar company based in Sao Paulo.

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