SK Innovation prices $500 million, Korea Development, State Bank of India mandate banks

By Paul A. Harris

Portland, Ore., July 9 – High grade emerging markets debt was one to two basis points tighter while the rest of the asset class was flat on the day, a trader said.

Among benchmark issues, Brazil’s 7 1/8% global bonds due January 2037 were marked at 107.30 during the London morning, a market source said.

The Petrobras International Finance Co. 6¾% senior notes due 2037 were marked at 91.58, the source added.

Crude oil prices were better on the day. The barrel price of West Texas Intermediate crude for August 2018 deliver was up 0.28%, or 21 cents, and $74.01.

There was activity in the investment grade primary market.

SK Innovation Co. Ltd. priced $500 million of five-year senior notes (Baa1/BBB+) at a 140 bps spread to Treasuries.

Meanwhile Korea Development Bank and State Bank of India mandated banks ahead of bond offerings.

Below the investment grade-speculative grade boundary the primary market remains sidelined, a trader said.

Of such credits, 12 to 15 have run investor roadshows and are awaiting market circumstances that might favor an efficient execution.

Issuers continue to become acclimatized to higher rates, the source remarked.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.