Primary hosts Cencosud, Pemex; Petrobras scandal continues; Lebanon picks banks

By Christine Van Dusen

Atlanta, Feb. 4 – Chile’s Cencosud SA and Mexico’s Petroleos Mexicanos sold notes on Thursday as better buyers were seen for paper from Latin America, with Brazil-based Petroleo Brasiliero SA (Petrobras) tightening even as investors remained focused on the continuing corruption scandal.

This time, police were questioning the treasurer of the Workers’ Party about donations requested from Petrobras. In response, the curve for Brazil-based Vale SA tightened too, with the 2042s outperforming, a New York-based trader said.

In other trading from Latin America, banks from Colombia moved higher and tighter while other corporates were mostly quiet, he said.

And the market reacted favorably to earnings results from Mexico-based Cemex SAB de CV, he said. The company’s curve climbed a few points after recent pressure.

Also on Thursday, the new issue of notes from Turkey-based Turkiye Halk Bankasi (Halkbank) – 4¾% 2021s that priced at 99.562 to yield 4.825%, or mid-swaps plus 322 basis points – was seen as offering upside value, a trader said.

But the notes struggled in trading as the session went on.

“Take a respectable bank, show up with a new issue, price it somewhat indifferently with minimal value, ignore all the technicals and just consider screen prices, throw in six banks to the syndicate, leave them to bicker and fight, bring your deal, allocate it poorly and watch it tank as the flippers hit bids.”

Despite the Halkbank deal, European asset managers have been added bonds from Turkish banks, another trader said.

Lebanon has hired Blom Bank, Citigroup and Societe Generale de Banque au Liban to lead a notes offering of a minimum of $1 billion, a market source said.

© 2015 Prospect News.
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