New issues from Beijing Infrastructure, Montenegro, Sappi; Petronas deal gets attention

By Christine Van Dusen

Atlanta, March 12 – China’s Beijing Infrastructure Investment (Hong Kong) Ltd., Montenegro and Sappi Southern Africa (Pty.) Ltd. priced notes on Thursday as the market digested the $5 billion deal from Malaysia’s Petroliam Nasional Bhd. (Petronas) and Latvia and Malaysia contemplated new issues.

In trading, Russian bonds were mostly unchanged on Thursday after widening on Wednesday, a London-based analyst said. And sentiment about Ukraine improved after the International Monetary Fund approved a $17.5 billion aid package for the sovereign.

“Now that the IMF deal is out of the way, we should see Ukraine approach bondholders regarding restructuring talks,” he said.

Turkey’s credit default swaps spreads tightened 6 basis points on Thursday morning on a stronger lira, spurred by positive comments from government ministers and an improvement in the current account deficit, he said.

From Central and emerging Europe, spreads tightened slightly on the move in rates, he said.

Much of the focus in the Asian bond market on Thursday, where high-grade bonds closed mostly unchanged to slightly tighter, was on the new $5 billion and four-tranche deal from Malaysia’s Petronas.

“Deal traded weak during the Asian morning, with all tranches dipping below re-offer, but recovered after London open,” a London-based trader said.

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