Venezuela, PDVSA bonds under pressure but still up year to date; EM enjoys solid support

By Rebecca Melvin

New York, Jan. 19 – Venezuela bonds were under pressure on Friday at the conclusion of a week of negative news for the Latin American country related to declines in oil output, looting and deaths related to both looting and political opposition.

Venezuela’s bonds due 2020, 2024, 2025 and 2026 and Petroleos de Venezuela SA notes due 2023 and 2024 were down 0.5 to 0.8 point on the day; but they are still up for the year, according to New York-based market sources.

Emerging markets overall were “very well supported” with “good demand,” a London-based trader said on Friday of the week’s activity.

Investors began to turn their attention to next week’s business. Turkey’s Fibabanka AS plans to price $500 million of five-year senior notes. There is also the potential deal from Egypt, which is rumored to be announced in the next couple of weeks.

In Latin America, Brazil’s Natura Cosmeticos SA announced plans to price dollar-denominated notes; Genneia SA plans to price a tap of its 8¾% notes due 2022; Argentina water utility Agua y Saneamientos Argentinos SA mandated Citigroup, Deutsche Bank and HSBC to arrange a series of fixed-income investor meetings beginning on Monday; MSU SA plans to price a dollar-denominated offering of notes; and Unifin Financiera SAB de CV plans to price up to $250 million of subordinated perpetual notes.

© 2015 Prospect News.
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