Emerging markets mostly quiet but Asia’s primary picks up; Middle East, Africa spreads wider

By Rebecca Melvin

New York, July 5 – The emerging markets saw a mostly muted session on Wednesday following Tuesday’s Independence Day holiday break in the United States.

In Latin America, there were no new issues, a trader said, but market players anticipate that Chile’s Cencosud SA, which is tendering for up to a total of $750 million of its 5.5% senior notes due 2021 and its $1.2 billion issue of 4.875% senior notes due 2023, will offer new notes soon.

Earlier in the session, there were deals announced and priced in Asia.

Hindustan Petroleum Corp. Ltd. priced $500 million of 10-year 4% senior bonds (expected: Baa3//BBB-) in a Regulation S deal.

The deal came at a spread of 167.5 basis points, tighter than initial guidance set in the Treasuries plus 200 bps area.

In the Middle East, Qatar is facing potential punitive actions by Saudi Arabia, Egypt, Bahrain and the United Arab Emirates after signaling its rejection of a 13-point list of demands that include curbing diplomatic ties with Iran, severing links with the Muslim Brotherhood and closing the Al Jazeera television network.

Qatar saw sellers, especially for bank paper.

The rest of the Middle East and North Africa also saw weakness amid another drop in oil prices and higher Treasury prices, according to a trader.

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