Issuance from ASE, Lai Sun, Net4Gas, Macedonia; Ukraine, Russia remain in focus

By Christine Van Dusen

Atlanta, July 17 – Taiwan’s Advanced Semiconductor Engineering, China’s Lai Sun Development Co. Ltd., Czech Republic’s Net4Gas sro and Macedonia were among the issuers to print notes on Thursday as investors focused the plane crash in Ukraine and sanctions against Russia.

On Thursday, a Malaysia Airlines flight with 295 passengers aboard was downed in Eastern Ukraine. As of the market close in the United States, reports had not identified who was responsible for the crash.

Meanwhile, the United States imposed sanctions against several Russian financial companies, preventing them from accessing capital markets, as punishment for activities in Eastern Ukraine and Crimea.

All of this made for some weak trading of emerging markets assets on Thursday, a London-based analyst said.

Bonds from sanctioned Vnesheconombank widened by as much as 75 basis points while OAO Sberbank, which was not sanctioned, widened by about 30 bps. Russia’s 2030s moved out 15 bps.

Looking to Latin America, most bonds weakened substantially on Thursday amid very thin liquidity, a New York-based trader said.

Selling increased as the session went on and performance from recent new issues was mixed, he said.

Peru-based Corporacion Financiera de Desarrollo SA (Cofide) saw its two-tranche issue of $600 million notes due 2019 and 2029 move up a bit in trading, he said.

But the new notes from Mexico-based Unifin Financiera SAPI de CV – $400 million 6¼% notes due 2019 that priced at 99.472 – weakened, he said.

© 2015 Prospect News.
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