Turkey bonds trade off slightly; ProCredit postpones deal; Middle East widens; JBS on deck

By Rebecca Melvin

New York, Oct. 17 – The Republic of Turkey’s newly priced bonds slipped in first-day trading as the emerging-markets debt space weakened slightly overall on Wednesday, and ProCredit Holding AG & Co. KGaA postponed pricing of its new notes issue after going out with initial price talk.

Turkey’s 7¼% global fixed-rate senior notes due December 2023 traded slightly lower after the sovereign price $2 billion of the notes at 98.917 on Tuesday. They were seen 99.30 bid, 99.40 offered, according to a London-based trader.

In the choppiness, Eastern Europe-focused ProCredit decided to postpone its inaugural euro-denominated sub-benchmark of three-year green bonds, according to a syndicate source.

The transaction had been set to price on Wednesday and went out with initial price talk for a yield spread of mid-swaps plus 145 basis points.

Sao Paulo-based meat processing company JBS SA guided pricing for its $500 million offering of senior notes due January 2026 to yield in the low-to-mid 7% area. The deal could price as early as Thursday.

In the secondary market, the Middle East credits widened out a bit in the early going after positive trading the previous session. On Tuesday, Saudi Arabia had been 18 bps tighter.

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