Chile prints euro deal; scandal doesn’t hurt Petrobras bonds; Kenya to issue bonds

By Christine Van Dusen

Atlanta, Dec. 3 – Chile printed euro- and dollar-denominated notes on a Wednesday that saw Brazilian corporate bonds barely budge on the news that an executive from Petroleo Brasileiro SA was planning to return $100 million to the company and testify against his co-workers as part of a corruption investigation.

“No material move in spreads so far this morning,” a New York-based trader said. “Close to yesterday’s close.”

By the afternoon, Petrobras’ bonds actually managed to tighten about 8 basis points on the day, he said.

Brazil-based Vale SA bonds were mostly unchanged, though buyers did start to emerge for the 2036s and 2039s, he said.

Brazil’s Odebrecht SA, meanwhile, was quiet.

Other Latin American corporate bonds were offered lower with very few bid requests, he said.

Colombia’s Ecopetrol SA managed to bounce, though, amid light buying, he said.

In other trading, bonds from Ukraine entered mid-week lower by about 1½ points, even as the sovereign moved toward a ceasefire with Russia-supporting rebels, said Svitlana Rusakova of Dragon Capital.

Also hurting the mood, Donbass Fuel & Energy’s (DTEK) 2018s fell without any provocation, she said.

“Liquidation into an illiquid market is the likeliest reason,” she said.

In deal-related news, Kenya is looking to issue Islamic bonds in 2015, a market source said.

India’s Lodha Developers Private Ltd. is postponing its planned issue of dollar-denominated notes until early 2015, a market source said.

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