EM debt weighed by trade; Cyprus joins deal calendar; positive tone lifts Argentina bonds

By Rebecca Melvin

New York, Sept. 17 – Emerging markets debt players were focused Monday on new supply expected to be coming this week, and Argentina’s bonds saw better tone, but much of the space was under pressure as U.S.-China trade fears featured again.

Cyprus joined the new issue calendar with a planned benchmark of euro-denominated 10-year notes. The deal announcement came on the heels of an upgrade to investment grade by S&P on the nation’s long- and short-term foreign and local currency sovereign credit ratings.

There were four solid new issues that priced from the Gulf Cooperation Council last week, and based on that positive reception, more deals were announced. But as of late Monday there was no word yet on Saudi Electricity Co. or Dubai’s DP World Ltd., which announced mandates last week.

United Arab Emirates’ Aldar Properties PJSC plans to issue five- to 10-year dollar-denominated trust certificates, the company said in an announcement on Monday.

National Bank of Oman and Islamic Development Bank rounded out the rest of the deals so far that investors are focused on this week, according to a London-based trader.

This week is a likely candidate for corporates and sovereigns to squeeze in issuance ahead of next week’s U.S. Federal Reserve meeting, where the central bank is widely expected to raise short-term interest rates for the third time this year.

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