Bahrain announces new deal; ADCB launches, Sigma, Baidu price as trade talk roils market

By Rebecca Melvin

New York, March 22 – Emerging markets on Thursday saw a number of deals on the calendar move toward pricing or price, and Bahrain announced a multi-tranche dollar benchmark deal, but secondary market spreads widened out significantly amid a strong risk-off wave that sent stocks, Treasury yields, and oil lower and gold higher on the day.

At the outset of the New York session, “futures were down but sentiment was good on the back of the FOMC,” a New York-based market source said. “The tariffs/trade war news throughout the day weighed on the market.”

Most of the primary market activity had been on pause ahead of the news. Abu Dhabi Commercial Bank PJSC launched a larger than initially talked $750 million of five-year notes to yield 130 bps over mid-swaps.

Beijing-based web services company Baidu Inc. priced $1.5 billion in two tranches of notes due in five and 10 years, including $1 billion of 3 7/8% notes due 2023 priced at 99.902 to yield 3.895% and $500 million of 4 3/8% notes due 2028 priced at 99.432 to yield 4.446%.

And Sigma Alimentos SA de CV priced $500 million 4 7/8% senior notes due 2028 at 99.336 to yield 4.96%, or a yield spread of U.S. Treasuries plus 212.5 bps.

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