CAF to price dollar benchmark; Venezuela up on political news; secondary bid strengthens

By Rebecca Melvin

New York, July 10 – Emerging primary markets were mostly quiet to start the week on Monday, but there was a generally supportive tone in the secondary market with bids seen returning for the Middle East and Africa regions as well as Eastern Europe, following weakness last week, market sources said.

“We’ve come back today to a solid start after being a little bit weaker last week,” a London-based trader said.

In Latin America, regional lender Corporacion Andina de Fomento set initial talk on a U.S. dollar-denominated benchmark that was expected to price on Tuesday at the mid-swaps plus 50 bps area, a syndicate source said.

Other deal action was quiet in Latin America, and the status of Pampa Energia SA’s peso-denominated offering of five-year notes for up to $500 million equivalent was not in the market anymore, a syndicate source said.

In secondary market action, Venezuela and its state-owned oil company, Petroleos de Venezuela SA, moved up strongly in busy trade.

Investor enthusiasm in Venezuela got a boost on news that the country’s opposition leader Leopoldo Lopez was transferred from prison to house arrest on Saturday.

On the primary calendar for central Europe, Kazakhstan’s oil and gas company Nostrum Oil & Gas LP was being eyed, a trader said.

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