Saudi notes tighten in first-day trading; older Saudi notes firm; new Mexichem tightens

By Rebecca Melvin

New York, Sept. 28 – Emerging markets were described as strong on Thursday as $12.5 billion of new sovereign debt for Saudi Arabia hit the market, and those new notes moved tighter in active trade, a market source said.

The new $3 billion of Saudi 2 7/8% notes due 2023 remained under par but were higher than issue at 99.73 bid, 99.76 offered. The 2 7/8% notes priced at 99.336.

The $5 billion issue of Saudi 3 5/8% notes due 2028 was seen at 99.83 bid, 99.89 offered after that deal priced at reoffered 98.831.

And the $4.5 billion of new Saudi 4 5/8% notes due 2047 touched par and were seen at 99.85 bid, 100 offered, after the tranche priced at 99.390.

Meanwhile the existing curve was tighter.

“The whole curve is firm,” a trader said of Saudi Arabia’s spectrum of notes.

Outside the Middle East and Africa region, Mexichem SAB de CV priced $1 billion of senior notes in two parts, including $500 million of 4% notes due 2027 and $500 million of 5½% notes due 2048.

The new Mexichem tranches were trading tighter by about 5 bps, a New York-based trader said.

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