Indonesia, Bright Food sell notes; Pemex prices $5 billion; IIF data suggests inflows resuming

By Rebecca Melvin

New York, July 11 – Emerging primary markets saw a number of new deals launch and price on Tuesday, most notably from Asia and Latin America, as global bond markets continued to stabilize following two weeks of selling related to worries global economic growth will spur major central banks to raise interest rates and reduce balance sheets.

The higher yields that resulted from the selloff put pressure on the EM bond universe and led to portfolio debt outflows from the asset class last week, reversing a trend that had been solidly in place since the beginning of the year.

But now with yields holding steady, it appears that outflows have subsided, and since Friday and into this week, data suggests that inflows are resuming, according to the Institute of International Finance, a global trade group of financial institutions.

Among new issues, the Republic of Indonesia priced €1 billion of 2.15% seven-year senior notes on Tuesday at 99.82 for mid-swaps plus 158 basis points yield, according to a syndicate source.

Also in Asia, Shanghai-based food and beverage company Bright Food (Group) Co. Ltd. sold €800 million of three-year notes (expected ratings: Baa3/BBB-/A-) at 99.792 to yield mid-swaps plus 117.5 bps.

In Latin America, Petroleos Mexicanos SAB de CV priced $5 billion of senior notes in two equal tranches, reopening its 6½% notes due 2027 and 6¾% notes due 2047.

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