Oil slide weighs on EM debt; NiQuan Energy Trinidad defers; China deals active

By Rebecca Melvin

New York, Dec. 18 – A slide in oil prices on Tuesday pulled down emerging markets debt, which had been enjoying a bit of buoyancy in recent sessions.

The oil market has been hit by waves of oversupply worries amid slowing growth.

West Texas Intermediate crude oil prices fell 7.3% to $46.24 a barrel on the New York Mercantile Exchange on Tuesday. The price of Brent oil closed down 5.6% to $56.26 on Tuesday.

Petroleos Mexicanos SAB de CV’s 6½% notes due 2027 closed down a point to 96.97, compared to pricing in the area of 98 on Monday.

Global slowing growth puts a damper on demand.

NiQuan Energy Trinidad Ltd., a subsidiary of NiQuan Energy LLC, is now expected to push pricing of its notes offering until 2019 as market volatility and the holiday lull undercut chances to price in the past few sessions, according to market sources. But issuance from China continues to trickle in.

Niquan, a Trinidad and Tobago-based gas to liquids plant operator, is now expected to price $100 million to $150 million of notes in early January.

Meanwhile, Fantasia Holdings Group Co. Ltd., a high-yield property development credit based in Shenzhen, issued $130 million of 15% notes due 2021 on Monday, and Nanjing, China’s Redsun Properties Group Ltd. priced a $200 million add-on to its 13½% senior notes due 2020.

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