New Gazprom edges higher; Cencosud notes slip below par, new Buenos Aires paper quiet

By Rebecca Melvin

New York, July 13 – New deals in emerging markets put in a mixed performance on Thursday as Russia’s new PJSC Gazprom bonds edged up on their market debut while Chile’s Cencosud SA slipped in a hiccup linked to investor indigestion over the larger-than-expected deal size, market sources said.

Gazprom’s newly priced 2˝% notes edged up after the Moscow-based natural gas producer priced CHF 500 million of the five-year loan participation notes at par. They traded around 100.5, to as high as 100.8, a London-based trader said.

Cencosud, a retailer based in Santiago, sold $1 billion of senior notes with a 4 3/8% coupon at Treasuries plus 210 basis points. The deal was a bit meatier than the $750 million to $850 million deal size expected, a New York-based trader noted.

“Cencosud printed $1 billion, and people are still digesting it,” the trader said, putting a late market for the new paper at 99.10 bid, 99.40 offered.

Buenos Aires priced €500 million of 5 3/8% 5.5-year notes that weren’t heard trading in the secondary after terms were fixed.

A trader noted that Argentina credit overall was a little weaker on the day, and the province’s euro-deal, which priced at 99.455 to yield 5˝%, or mid-swaps plus 512.3 bps, was a little tight compared to talk.

The notes were talked at a 5˝% to 5ľ% yield.

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