Morning Commentary: New Croatia bond trades higher; Nigeria offering on tap; deal flow slows

By Rebecca Melvin

New York, Nov. 17 – Croatia’s newly priced 2¾% notes due Jan. 27, 2030 were “trading up nicely” after the sovereign priced €1,275,000,000 of the long 12-year paper to yield mid-swaps plus 190 basis points, according to a London-based market source.

The new Croatia bonds were seen at 99.05 bid, 99.45 offered, which was up from the reoffer of 97.943.

Looking ahead, the Federal Republic of Nigeria was expected to bring a deal subject to market conditions on Monday following a roadshow that was wrapping up on Friday for 10-year and 30-year dollar-denominated eurobonds.

Otherwise the pipeline for the Central & Eastern Europe, Middle East and Africa region was shaping up to be pretty quiet next week ahead of the U.S. Thanksgiving holiday. One bank source said to expect a couple of deals after Thanksgiving for which details were not yet available.

In Latin America, the City of Buenos Aires priced $403 million equivalent of Argentine peso-denominated floating-rate notes at par to yield 29% initially.

The first two coupons will be fixed and then shift to Badlar plus 375 bps for the 2028 paper. The notes will be denominated in Argentine pesos but will be subscribed and payable in dollars at the specified exchange rate.

Also for the region, Mexican lender Credito Real SAB de CV Sofom ER is on the calendar for a $230 million offering of subordinated perpetual notes, and one source said Friday that a second deal is in the works for pricing the week after Thanksgiving.

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