Belarus bonds rally; Venezuela, PDVSA bonds drop with lower oil; Pampa Energia plans issue

By Rebecca Melvin

New York, June 22 – The Republic of Belarus’ new $1.4 billion of notes in 5˝- and 10-year tranches tightened on Friday by 20 to 30 basis points, as emerging markets overall saw a strong bid, market sources said.

The move in the Belarus 6 7/8% notes due 2023 and Belarus 7 5/8% notes due 2027 represented a significant rally, which should be chalked up to good pricing, one source said.

They jumped higher and did well, but the entire market was firmer, a London-based trader said of the Belarus bonds. “There were good bids for most things.”

Also new to the secondary market on Friday was Turkiye Is Bankasi AS (Isbank)’s $500 million 11-year bonds that priced at par to yield 7%.

Argentina’s Pampa Energia SA is also planning a new issue with investor meetings set next week regarding up to $500 million equivalent in Argentine peso-denominated notes due 2022. The Rule 144A and Regulation S notes would be denominated in pesos but paid out in dollars.

Back in established issues, Venezuela’s bonds were down on the week in tandem with lower oil prices. The debt of both the Venezuela sovereign and its state-owned oil company, Petroleos de Venezuela SA, were down 6 to 8 points since May 31, a trader said.

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