Benchmark deals from Petrobras, Senegal, GarantiBank; LatAm mixed as Venezuela swings down

By Colin Hanner

Chicago, May 16 – A handful of new issues hit the market on Tuesday in the emerging market space, the most notable among them from Petroleo Brasileiro SA (Petrobras).

The semi-public oil company sold $4 billion of combined add-ons to its 6 1/8% notes due 2022, 7 3/8% notes due 2027 and 7¼% notes due 2044 on Monday, the company said in three FWP filings with the Securities and Exchange Commission.

Senegal priced $1.2 billion 6¼% 16-year notes at par, a market source said.

Price talks were in the 6½% area, tightening to 6¼.

A market source said the deal was oversubscribed at more than $4 billion.

Istanbul-based financial services company Turkiye Garanti Bankasi (GarantiBank) sold $750 million 6 1/8% Basel III-compliant tier 2 10-year bonds at par, a market source said.

The bonds priced on top of revised price talk.

From Latin America, the tone in Venezuela shifted to that opposite of Monday’s movement, where sovereign issues were generally higher. On Tuesday, bonds were across-the-board lower.

In Brazil, though, things were moving the opposite direction.

“Another day, another rally,” a market source said. “We saw buying all across the curve.”

In Colombia, liquidity was “still very poor,” according to a market source, though was trading “decently well,” whereas in Mexico, some bonds are “5-6 [points] wider from the tights of last week.”

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.