Bank of Communications, India’s Adani Ports bring new deals; EM investors still risk-averse

By Christine Van Dusen

Atlanta, July 22 – China’s Bank of Communications and India’s Adani Ports and Special Economic Zone Ltd. sold preference shares and notes on Wednesday as Asian bonds closed their session unchanged or 3 basis points wider and investors remained cautious.

The 2025 notes from both China-based Cnooc Ltd. and China Petroleum & Chemical Corp. (Sinopec Group) closed lower, a London-based trader said.

“Korea was quiet and unchanged,” he said. “India closed a touch wider today, with some profit-taking after the recent rally.”

The new issue of notes from Beijing’s CCB Financial Leasing Corp. Ltd. – $500 million 3¼% notes due in 2020 that priced overnight at 98.331 to yield 3.618%, or Treasuries plus 190 bps – traded as tight as 183 bps before moving to 186 bps and closing at 188 bps bid, 185 bps offered.

“Rest of Asia also feels a touch weaker,” another trader said. “Seeing some papers coming out, especially in the China internet space, widening by 3 bps to 5 bps.”

Indonesia’s bonds moved about 25 cents lower, he said.

“So far buyers have been very cautious and selective,” he said.

From Latin America, Pacific Rubiales Energy Corp.’s bonds were “holding up surprisingly well” in the day’s “pretty weak market for risk,” a New York-based trader said.

But overall, notes from the region suffered on Wednesday, another trader said.

© 2015 Prospect News.
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