Israel prices $2 billion notes; Rumo, Interbank price; market eyes rates, NAFTA talks

By Rebecca Melvin

New York, Jan. 10 – Israel priced $2 billion of notes in a two-tranche deal on Wednesday, and from Latin America Rumo SA priced $500 million of notes to yield 6% and Banco Internacional del Peru SA (Interbank) priced $200 million of five-year notes to yield 3.389%; but several deals expected to price on Wednesday were left on the calendar.

Emerging markets were weighed down initially on Wednesday by a bump up in U.S. Treasury rates that dampened demand for the emerging markets space early in the day. And worries regarding negative reports on the North America Free Trade Agreement late in the session rocked the Latin America region after Treasuries had recovered.

One deal that did not seem to get priced was that of Mexican auto parts maker Nemak SAB de CV, which is on the calendar for a Rule 144A and Regulation S dollar deal.

“I don’t think Nemak has announced initial price talk, and after the news or rumors on NAFTA it might not even come any time soon,” a New York-based market source said.

The news on NAFTA was that Canadian sources are becoming more convinced that U.S. President Donald Trump plans to pull out of NAFTA as negotiations appear to be at a stalemate. The reports sent the Mexican and Canadian currencies lower.

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