Angola spreads tighten on potential IMF support; South Africa better; EM debt firmer

By Rebecca Melvin

New York, Aug. 22 – Angola’s sovereign curve benefited from word that the African nation has sought funding assistance from the International Monetary Fund, according to market sources on Wednesday.

The spread on Angola’s 9 3/8% notes due 2048 was tighter by 27 basis points on the week, with the bond price at 104 bid, 105 offered, a London-based trader said.

Elsewhere, South Africa’s sovereign curve was mostly tighter on Wednesday, although the shortest-dated notes, the South Africa’s 6 7/8% 2019 notes, were wider by 9 bps for a dollar price of 102¼ bid, 102¾ offered.

The South Africa rand strengthened notably against the dollar on Wednesday, up 1.5% against the dollar, which weakened against most currencies following the release of the United States’ Federal Open Market Committee Meeting minutes from its meeting July 31 to Aug. 1. But the dollar remained up 0.3% against the Brazilian real.

Primary market activity on Wednesday was limited to Asia issuers. Shenzhen, China-based real estate development company Logan Property Holdings Co. Ltd. priced $300 million of 7½% three-year senior notes on Tuesday; the Philippines’ Asian Development Bank sold AMD 2.66 billion of 7.2392% five-year offshore Armenian dram-linked bonds, with the bonds denominated in Armenian dram but settled in dollars; and the Bank of Thailand auctioned 15.4 billion baht of 3.775% debt securities due June 25, 2032 on Wednesday.

© 2015 Prospect News.
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