Emerging Markets mostly weaker; Geo Energy pulls deal; Odea Bank prices; Venezuela drops

By Rebecca Melvin

New York, July 24 – Emerging market debt was flat to weaker on Monday as ongoing uncertainty over rates, worries of potential default in Venezuela and generally light liquidity due to summer doldrums weighed on markets.

But a meeting of the Organization of the Petroleum Exporting Countries and big non-OPEC oil producers, in which Saudi Arabia announced it will limit its own oil exports and stronger resolve emerged to hold other members to agreed limits, cheered oil markets.

The front month price for West Texas intermediate crude oil was up 71 cents, or 1.6%, to $46.48 a barrel at the end of Monday, and Brent crude was up 62 cents, or 1.3%, to $48.68 per barrel.

Middle East fixed income markets are helped by higher oil. But also helping tone in the region was a sense that a full-blown crisis related to the rift between Qatar and a Saudi-led group of Gulf region countries has been averted.

In primary news, Geo Energy Resources Ltd., a Singapore-based mining company, announced that it has canceled a proposed offering of dollar-denominated five-year notes due to market conditions following a roadshow that began July 10.

In the Central Europe, Europe, Middle East and Africa region, Turkey’s Odea Bank AS sold $300 million 10-year Basel III-compliant tier 2 capital notes (expected ratings: B2 (hyb)/B+/) to yield 7 5/8%, according to a market source. Price talk for the notes had been in the high 7% area.

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