New deals from China Construction, Cuervo, Medco Energi; roadshows abound for EM issuers

By Christine Van Dusen

Atlanta, May 6 – China Construction Bank (Asia) Corp. Ltd., Mexico’s JB y Compania SA de CV (Cuervo) and Indonesia’s PT Medco Energi Global Pte. Ltd. were among the issuers to sell bonds on a mostly risk-off Wednesday for emerging markets assets.

Investors in Asian bonds were among the most risk-averse during the session, and that sent high-grade cash names wider by 1 basis point to 3 bps, a London-based trader said.

“The sell-off in United States Treasuries continued, but real-money demand – which we saw earlier this week – has slowed as primary supply came back to life,” he said. “We saw a bit of selling pressure in the recent issues, with Cnooc Ltd.’s 2025 trading down to the wides of 157 bps to close at 158 bps bid, 155 bps offered, or 4 bps wider.”

Financial companies from China closed the Asian session unchanged to 3 bps wider, he said.

“Korea is quiet,” he said. “India held in firm, with good demand in the short-end financials.”

Bonds from Philippines were “quite subdued,” he said, with the 2040s among the most active.

In deal-related news, numerous issuers were on or planning roadshows, including Beijing-based Agricultural Bank of China Ltd., China’s Hsin Chong Construction Group Ltd., Indonesia, China’s Shanghai Electric Group Co. Ltd., China General Nuclear Power Corp., Poland’s mBank SA and Dubai’s DP World.

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