Issuance from Kernel, NTPC; Egypt bonds in focus; Asia, Mexico, Brazil bonds eyed

By Christine Van Dusen

Atlanta, Jan. 25 – Ukraine’s Kernel Holding SA and India’s NTPC Ltd. sold notes on a mostly stable Wednesday for emerging markets assets.

“While there are enough reasons to remain on the cautious side, sentiment in EM credit remains solid, which gets the primary market going,” a London-based analyst said.

The $4 billion deal that Egypt priced on Wednesday received some attention. The new 2022 notes traded Wednesday at 100.20 bid, 100.40 offered before closing at 100.06 bid, 100.31 offered. The 2027 notes traded at 100.07 bid, 100.37 offered before closing at par bid, 100¼ offered. And the 2047 notes were spotted at 100½ bid, 101 offered before closing at 100.43 bid, 100.93 offered.

For much of the emerging markets universe, the “situation remains rather stable in the bond market,” according to a report from Schildershoven Finance BV. “We expect that bonds will continue to trade close to the current levels.”

But Asian bonds slipped slightly on Wednesday.

“Market activity has been weakened ahead of the holidays,” the report said. “However, the trend remains positive amid higher commodities prices.”

Looking to Latin America, investors in Mexico’s bond market were eyeing Trump’s renegotiation of the North American Free Trade Agreement.

“And investors in the Brazilian market are concerned over possible acceleration of the corruption investigation,” Schildershoven said.

© 2015 Prospect News.
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