Petrobras century deal gets attention; Buenos Aires prices notes; Lima Metro sets roadshow

By Christine Van Dusen

Atlanta, June 2 – Buenos Aires priced new notes on a Tuesday that saw action for the new 100-year issues of notes from Brazil-based Petroleo Brasileiro SA while high-grade bonds from China tightened in response to Treasury rates.

The new deal from Petrobras – $2.5 billion 6.85% notes due 2115 that priced Monday at 81.070 to yield 8.45%, or Treasuries plus 549.3 basis points – made up more than 10% of trading in the high-yield space, with more than $360 million in trading.

That far exceeded any other bonds in that space on Tuesday, a market source said.

For bonds from Asia, “fast-money accounts took this as an opportunity to take profit, and we closed the day unchanged to a couple basis points tighter,” a London-based trader said. “The overall tone still feels defensive, as U.S. Treasuries sold off further, post-London open. But buying interests diminished.”

China-based Cnooc Ltd.’s recent 3½% 10-year notes traded at 144 bps on Tuesday before settling closer to 146 bps, he said.

China Petroleum & Chemical Corp.’s $1.5 billion 3¼% notes 2025 traded at 130 bps on Tuesday, he said.

In deal-related news, Peru’s Lima Metro Line 2 Finance Ltd. will set out on Wednesday for a roadshow to market a dollar-denominated issue of notes.

And Gabon has mandated Deutsche Bank, JPMorgan and Standard Chartered Bank as bookrunners for a dollar-denominated issue of benchmark-sized notes that will be marketed during a roadshow.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.