New CAF seven-year notes trade in line with broader market; First Abu Dhabi still on hold

By Rebecca Melvin

New York, Feb. 7 – Corporacion Andina de Fomento’s newly price 1 1/8% notes traded mostly in line with the broader markets on Wednesday after the Latin American regional lender priced €1 billion of the seven-year notes during a turbulent session on Tuesday that followed the steep selloff in U.S. equities on Monday, a market source said.

The CAF deal priced well, with a yield spread of mid-swaps plus 40 basis points, and traded with a bid spread of about mid-swaps plus 38.5 bps. That was in line with the seven-year Treasury that had moved in by the same amount, the source said.

Also on Wednesday, there was still no word on First Abu Dhabi Bank, which postponed pricing of a dollar-denominated five-year sukuk on Tuesday due to market conditions.

But South Korea’s Daegu Bank Ltd. priced $300 million of 3¾% notes due 2023 on Wednesday to yield U.S. Treasuries plus 135 bps, and another lender, Credit Bank of Moscow, priced $500 million of 5.55% five-year notes at par. The order book for the Credit Bank deal was more than $1 billion.

In Latin America, Creditvalores-Crediservicios SAS launched a $75 million tap of its 9¾% notes due 2022 to yield 8¾%. The Bogota, Colombia-based consumer lender priced the initial $250 million of 2022 notes last July.

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