Primary ends quarter, half on quiet note; secondary active; Naspers, Banorte up on debuts

By Rebecca Melvin and Colin Hanner

New York, June 30 – The emerging primary market was mostly quiet on Friday ahead of the U.S. Fourth of July holiday and as the second quarter and first half of 2017 closed out. But the secondary market was busy as interest rate volatility continued and as oil prices continued to streak upward, market players said.

Argentina’s Pampa Energia SA is expected to come to market after July 4 with its peso-denominated five-year notes for up to $500 million equivalent.

Other deals are in the pipeline with expectations for a number coming from Mexico’s issuers, a New York-based sellside source said.

Argentina was the big note issuer in the first half of 2017, having brought about a quarter or a little more of total volume, but a window is open for Mexico with positive market conditions and ahead of presidential elections next year, the source said.

Back in established issues, there was a burst of activity in the secondary market as the month, the quarter and the first half closed, with some pressure related to rates volatility, but the asset class traded OK overall, a London-based trader said.

Naspers Ltd.’s 4.85% notes due 2027 traded up Friday after the company priced $1 billion of 4.85% 10-year senior notes (Baa3/BBB-/) at par on Thursday.

Both tranches of the $900 million issue of perpetuals from Mexico’s Banco Mercantil del Norte SA were trading higher.

© 2015 Prospect News.
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