Kazakhstan guides pricing of euro notes; Naftogaz plans notes; Mexico bonds weaker, stable

By Rebecca Melvin

New York, Nov. 5 – Kazakhstan was pricing dual tranches of euro-denominated senior notes on Monday when only a single inaugural benchmark had been expected.

“It looks like it went pretty well,” a London-based market source said regarding Kazakhstan’s five-year and 10-year tranches.

The combined order book was around €4 billion with a slight skew to the five-year notes.

No gray market was heard in the notes, which were seen pricing to yield 1.575%, plus or minus 2.5 basis points, for the five-year tranche and 2.4%, plus or minus 2.5 bps, for the 10-year issue.

Also in the Central & Emerging Europe region, Naftogaz of Ukraine announced that it plans to price dollar-denominated five-year notes.

Back in established issues, CEE bond spreads were little changed on the day. The recently priced Ukraine five-year and 10-year senior notes were down about 0.5 point, but they were only 5 bps wider, a market source said.

Mexico’s bond spreads remained wider a week after they were rocked by news the country’s president elect is canceling a $13.3 billion airport project, which has $6 billion of bonds tied to it and was already one-third of the way done.

While virtually all of Mexico’s paper moved wider on “all the noise...it seems to have found some place of stability at current levels,” a New York-based market source said.

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