EM debt drags lower as U.S. stocks, oil slide; Abu Dhabi’s Senaat plans new sukuk

By Rebecca Melvin

New York, Nov. 20 – Emerging markets debt was dragged down on Tuesday as U.S. stock markets continued to sell off and oil prices resumed their downward trajectory.

“All spreads are struggling today; all are under pressure,” a London-based trader said.

Despite the market volatility, a deal was announced for Abu Dhabi-based Senaat General Holding Corp. PJSC, which has selected banks and scheduled fixed-income investor meetings for a planned five- to seven-year Islamic bond, or sukuk.

The industrial investment holding company mandated Abu Dhabi Islamic Bank, Citigroup, Dubai Islamic Bank, First Abu Dhabi Bank and Standard Chartered Bank as the joint lead managers and bookrunners arranging the meetings for the senior unsecured debt. Meetings are scheduled starting on Wednesday in the United Kingdom, and continuing three more days in China and the Middle East.

Final pricing regarding a number of issues for the Asia region emerged. A subsidiary of Thai Oil PCL priced $1 billion of notes in two tranches under Rule 144A and Regulation S. The $400 million tranche of 2028 notes priced to yield 4 5/8%, and the $600 million tranche of 2048 notes priced to yield 5 3/8%.

Export-Import Bank of Korea (Kexim) priced $1 billion of short-dated notes due 2021 and 2023. The $500 million of 3½% three-year notes priced at 99.983, and the $500 million tranche of 3 3/8% five-year notes priced at 99.444.

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