Issuance from Kexim, Franshion; oil creates more volatility; NBAD, IDB advance deals

By Christine Van Dusen

Atlanta, Feb. 2 – The Export-Import Bank of Korea (Kexim) and China’s Franshion Brilliant Ltd. sold notes on a volatile Tuesday for emerging markets assets, which continued to be dragged up and down by the price of oil.

“Oil is clearly back at center stage, leading all assets,” a trader said. “Maybe some stability will offer relief to the broader market, but a continued sell-off will be cause for concern, especially in the EM realm.”

“Cash prices were initially unchanged, as United States Treasuries kept the market firm, but spread widening became too much, and by mid-afternoon, dollar prices were well-offered across the spectrum,” he said.

Still, high-yield names from the region managed to finish “surprisingly” unchanged, he said, “despite the risk-off sentiment.”

Bahrain and Saudi Electricity Co. were among the issuers hardest-hit by oil prices on Tuesday, a London-based trader said.

Egypt and Morocco were the outperformers on “another tricky day, all told,” he said.

In other news from the region, market sources were whispering about a possible issue of notes from Ethiopia.

National Bank of Abu Dhabi PJSC will hold a roadshow on Feb. 8 and Feb. 15 for a possible issue of notes, a market source said.

Saudi Arabia-based Islamic Development Bank is looking to issue dollar-denominated and benchmark-sized Islamic bonds during the first quarter of this year, a market source said.

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