Sentiment positive as EM activity slows before Easter; InRetail prices $350 million deal

By Rebecca Melvin

New York, March 27 – Emerging markets enjoyed continuing good sentiment Tuesday on the back of Monday’s turnaround, and InRetail Real Estate Corp. priced $350 million of 5¾% notes due 2028 at par. But overall activity was curtailed amid the Christian holy week ahead of Easter Sunday, according to market sources.

InRetail Shopping Malls, a subsidiary of InRetail Real Estate priced the 10-year non-call five notes (expected ratings: Ba2/BB/BB+) tight compared to initial talk in the low 6% area for the Rule 144A and Regulation S notes.

The issuer took advantage of positive sentiment on Tuesday following last week’s softer market when “it felt like the world was ending,” a New York-based market source said.

With the firmer ground here, there is a good possibility that the other deals on the Latin America forward calendar could price this week, sources said. Those deals include dollar-denominated notes for Gilex Holding Sarl, Vrio Corp., a Latin America-focused subsidiary of AT&T Inc., and Minerva SA.

Elsewhere, Bahrain was wrapping up a roadshow on Tuesday for a potential three-tranche dollar transaction. Spreads on Bahrain’s existing curve were mixed but improved from significant widening out in the past week.

Tunisia, which is also on the calendar for a potential new issue, saw its spreads tighter on Tuesday across its sovereign curve.

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