Logan Property advances deal; China, oil prices in focus; Otkritie, PrivatBank eyed

By Christine Van Dusen

Atlanta, Dec. 22 – China-based Logan Property Holdings Co. Ltd. advanced plans for a dollar-denominated issue of notes on a mostly quiet Thursday for emerging markets assets, as investors kept an eye on China and oil prices.

U.S. President-Elect Donald Trump’s decision to name Peter Navarro – a vocal critic of China – to lead the new White House National Trade Council could put a strain on relations between the two countries, market sources said.

Meanwhile, investors were surprised to see that there has been a build-up in U.S. oil inventories, which negatively affected oil prices. International producers have hammered out an agreement to deal with their own glut.

In other news, S&P’s decision to place Russia-based Bank Otkritie Financial Corp. PJSC’s rating on watch could hurt the company’s eurobonds.

All of these factors are likely to contribute to increased leverage at the level of Otkritie itself and deterioration of the consolidated risk-adjusted capital ratio for the whole group, the agency said.

“Bank Otkritie’s rating CreditWatch placement with negative implications may cool down investors’ appetite for the bank’s eurobonds,” Schildershoven said.

Also on Thursday, investors were eyeing Ukraine’s PrivatBank, which was recently taken over by the government to avoid a failure.

“We assume that the PrivatBank nationalization may trigger its eurobond restructuring,” Schildershoven said.

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