Deals ahead from Bahrain, South Africa, Peru, Bermuda; investors eye interest rates, oil

By Christine Van Dusen

Atlanta, Sept. 28 – Several issuers advanced new deals – including Bahrain and Bermuda – as emerging markets investors kept an eye on the Federal Open Market Committee, oil prices and South Africa's MTN Group.

“In the aftermath of last week’s FOMC policy meeting, we have seen yields on U.S. Treasuries coming down steadily, with the 10-years currently trading around 1.56%, versus 1.70% a week ago,” a London-based analyst said. “We will see further Fed-speak over the next few days. Fed chair Yellen will deliver her semiannual testimony before the House Financial Services Committee, though the main focus will be on bank supervision and regulation.”

Oil prices were also on radar screens on Wednesday, as prices remained volatile but range-bound, he said.

Investors were also watching South Africa-based MTN, which faced allegations that the carrier had illegally transferred $13.92 billion out of its largest market within the last 10 years.

The company's 4.755% notes due in 2024 were about 30 bps wider on the week in response, a trader said.

Bahrain will set out on a roadshow that is expected to end Oct. 3 for a benchmark-sized offering of eurobonds, a market source said.

The sovereign previously announced that it had mandated Bank ABC, BNP Paribas, Credit Suisse, JPMorgan and Standard Chartered Bank as bookrunners for an upcoming Rule 144A and Regulation S deal.

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