EPP postpones euro deal; Colombia wider after election; Mexico quieter ahead of election

By Rebecca Melvin

New York, June 18 – Monday claimed another emerging markets debt primary deal, with EPP NV opening books on a euro-denominated benchmark only to announce shortly afterwards that it was postponing the transaction due to adverse market conditions.

Initial price talk for the Polish real estate investment company’s debut euro five-year notes (expected ratings: Ba1/BB+) was in the mid 3% area. The deal was expected to be more than €400 million in size.

The postponement is the latest of a couple of deals that failed to price in the current market.

EPP was to have been the first issuer of the Central & Emerging Europe region to price a deal since early May. Its postponement raises fears that the market may be shutting down early for the summer lull, with chances slimming that deals can push through before September, market sources have said.

In Latin America, Colombia’s bonds were slightly lower and slightly wider in spread across the curve on Monday after conservative candidate Ivan Duque won Colombia’s presidential election as expected on Sunday.

Mexico, which looks set to vote the opposite way when its presidential election is held in less than two weeks, has seen its international debt strengthen in the recently beaten down emerging markets debt space, but the bonds were decidedly quiet on Monday, a New York-based source said.

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