Morning Commentary: Rusal eyed on sanctions relief; Mexico airport bonds flat to lower

By Rebecca Melvin

New York, Dec. 20 – United Co. Rusal plc’s $500 million of 4.85% notes due 2023, which had been deemed the year’s worst deal by one Central and Eastern Europe region market source, deserved another look on Thursday after the U.S. Treasury announced sanctions relief for Rusal on Wednesday at the same time it imposed more sanctions on Russian individuals.

The Rusal bonds cratered in April after the United States imposed sanctions that required U.S. customers to wind down their business with Rusal by Oct. 23.

The Russian aluminum company had had to shut some production down in September, under the weight of sanctions that were imposed in connection with charges of Russian meddling in the U.S. 2016 elections.

Under the terms of a negotiated settlement between EN+ and the U.S. Treasury, Oleg Deripaska will reduce his holdings in EN+, the holding company for aluminum producer Rusal and a number of other assets, to 44.95%.

Meanwhile, Mexico City Airport bonds were in focus after Mexico’s Finance Ministry announced that its proposed tender offer and consent solicitation had received “overwhelming support” of the bondholders.

Mexico City Airport’s 3 7/8% notes due 2028 were quoted at 87¼, which was down more than 2 points compared with the previous day’s bid.

Mexico City Airport’s 5½% notes due 2047 were quoted far apart at 88 bid, 92 offered.

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