Russia bonds weaken; Slovenia stays flat; Future Land, Promsvyazbank seek issuance

By Christine Van Dusen

Atlanta, July 14 – Bonds from Russia were slightly weaker on Monday as tensions with Ukraine ramped up again, with claims that a Ukrainian shell crossed the Russian border and killed a citizen.

In response, credit default swap spreads for Russia moved out about 2 basis points, a London-based analyst said.

“Elsewhere, [emerging markets] generally feels unchanged,” she said.

Slovenia, for example, didn’t see any changes in its bond spreads, even after the weekend’s election.

Bonds from Serbia, however, did widen by about 5 bps on the news that the finance minister may be resigning, she said.

In other trading, the 6½% Islamic bonds due 2019 that Saudi Arabia’s Dar Al-Arkan Real Estate Development Co. priced at 98.953 to yield 6¾% were spotted at 101½ bid, 102½ offered, a trader said.

Saudi Arabia’s Saudi Basic Industries Corp. (Sabic) saw its 2¾% notes due 2020 – priced at 99.28 to yield mid-swaps plus 135 bps – trade on Monday at 105.62 bid, 106.62 offered, he said.

In deal-related news, Chile’s Celulosa Arauco y Constitucion SA on Monday completed a roadshow for a possible issue of notes.

China’s Future Land Development Holdings Ltd. is planning a dollar-denominated issue of notes.

Russia’s Promsvyazbank could issue dollar-denominated notes due in 2021 as part of an exchange offer.

And Greece’s Black Sea Trade and Development Bank is looking to issue euro-denominated notes this fall.

© 2015 Prospect News.
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