Tajikistan to roadshow debut dollar deal; EM prices hold in amid geopolitical volatility

By Paul A. Harris

Portland, Ore., Aug. 29 – Emerging markets debt prices were stable, spreads slightly wider and the market a little softer against a backdrop of increased geopolitical volatility and an ensuing selloff in stock markets around the globe, a London-based bond trader said on Tuesday.

Political tension between Russia and United States ratcheted higher as Russia’s foreign ministry condemned unilateral sanctions leveled by the United States against Venezuela.

Gazprom OJSC (Gaz Capital SA) 4.95% loan participation notes due March 2027 had a dollar price of 101˝ bid, trading at a 275 basis points spread to mid-swaps on Tuesday, slightly wider on the day, the trader said.

Elsewhere, PDVSA’s bonds tumbled further on Tuesday on the expectation that oil receivables might be seized by U.S. courts, according to a market source.

The PDVSA 5 3/8% notes due 2027 traded below 30 on Tuesday before rebounding to 31 on reports that China, Russian and possibly India may come to the aid of Venezuela in the face of U.S. sanctions, the source said.

Meanwhile, thin liquidity, which is expected to linger into the end of August, and a “risk-off” stance taking hold among investors, are impairing new issue activity.

Republic of Tajikistan (B3/B-) is expected to begin an investor roadshow for its debut dollar-denominated eurobond later this week, according to an informed source.

© 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.