Russia’s new 2025 notes slip in trade; Abu Dhabi’s Senaat prices; stocks rally

By Rebecca Melvin

New York, Nov. 28 – Russia’s new 2 7/8% notes slipped in trade on Wednesday after the sovereign priced €1 billion of the seven-year notes at 99.221 to yield 3%, according to market sources.

A London-based market source quoted the new Russia tranche at 99.5.

Pricing came at the wide end of revised guidance of 2 7/8% to 3%, which had been revised from initial guidance in the area of 3%.

Elsewhere, Senaat General Holding Corp. PJSC priced a seven-year sukuk that was halved in size from initial thoughts but priced well tight of initial guidance.

The new sukuk yields mid-swaps plus 170 basis points, compared to guidance of 180 bps to 185 bps over mid-swaps, which was tightened from guidance in the low 200 bps area over mid-swaps.

The Latin America region has been quiet so far this week, with one New York-based source pointing to Vale SA’s early tender results as a market focus. Vale announced the early results of the capped tender offer for five series of notes. It was tendering for up to a maximum of $1 billion of notes until Dec. 10. However, because the offer was oversubscribed, no more notes will be accepted for purchase.

Meanwhile U.S. stocks rallied and rates were little changed after Federal Reserve Chairman Jerome Powell’s comment during a speech in New York on Wednesday that seemed to point to potential slowing of the Fed’s pace of tightening.

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