Petrobras news, Petronas issuance put oil companies in the spotlight; ICBC oversubscribed

By Christine Van Dusen

Atlanta, March 13 – Brazil-based Petroleo Brasileiro SA (Petrobras) remained in the news on Friday as emerging markets investors focused their attention on the new four-tranche issue of $5 billion notes from Malaysia-based Petroliam Nasional Bhd. (Petronas).

Petrobras received attention on Friday after a media source reported that the oil company is looking to delay its audited results by six months to avoid having to pay off its debts, a trader said.

The company’s 2024s moved 32 basis points wider on Friday, while the 2043s moved out 24 bps, a New York-based trader said.

The 2021s were seen widening 45 bps while the 3¼% 2017s stretched a whopping 85 bps wider, he said.

From Asia, bonds followed the overnight rebound in equities and finished Friday unchanged to 5 bps tighter, a London-based trader said.

Bonds from Hong Kong and China led the rally, he said, with spreads narrowing 3 bps to 5 bps.

China’s oil companies were tighter by as much as 7 bps, while banks were better bid and as much as 5 bps tighter.

Property companies from China were unchanged to ¼ point higher.

Asian sovereigns “tried to firm up but failed as U.S. Treasuries leaked post-London open,” the trader said.

Industrial and Commercial Bank of China Ltd.’s new $1 billion issue of notes due in 2018 and 2020 drew a final order book of about $10.3 billion, a market source said.

© 2015 Prospect News.
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