EM investors eye new supply; RioPrevidencia announces; secondary softens in lighter flow

By Rebecca Melvin

New York, April 4 – New deal announcements continued in emerging markets on Wednesday, in continuation of Tuesday’s action when European market players returned from the Easter holiday. But the secondary market was mixed, with softening in the Central & Eastern Europe, Middle East and Africa, although Brazil was strong, market sources said.

Ukraine’s Metinvest BV was talking its planned notes for pricing later in the day. Guidance on the dollar-denominated five-year tranche was tightened to yield of 7 7/8% to 8% from initial talk in the 8% area; and guidance on the eight-year notes was tightened to 8 5/8% to 8¾% from initial talk in the mid- to high-8% range.

In Latin America, Brazil’s RioPrevidencia announced it has selected banks and scheduled a roadshow to market a dollar-denominated 10-year note, seen pricing next week subject to market conditions, a market source said.

The RioPrevidencia deal followed on the heels of a deal for Buenos Aires Province, which announced a seven-year peso-denominated floating-rate note on Tuesday.

But a rally in existing paper that marked month-end and quarter-end last week has not spilled into the new week, a market source said. Spreads are generally mixed, with Turkey being among the underperformers as investors sat back to wait for new supply.

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