Emerging markets see quiet day in primary; Russia, Rurail both trade higher in secondary

By Aleesia Forni

Columbus, Ohio, April 2 - Emerging markets saw a quiet day in the primary market, according to a London-based trader, while Russia's (Baa1/BBB/BBB) new bonds continued to trade above issue price in the secondary.

The sovereign priced $7 billion of bonds on Wednesday in three tranches.

Russia's notes due 2017 traded at 100.65 bid, 100.75 offered, while the new notes due 2022 settled at 100.50 bid, 100.75 offered, the source continued.

The $2 billion of 3¼% five-year notes priced at Treasuries plus 230 basis points, or 99.657, and $2 billion of 4½% 10-year notes priced at Treasuries plus 240 bps, or 99.277.

Also, Russia's $3 billion 5 5/8% 30-year bonds due 2042 traded at 100.55 bid, 100.95 offered.

The bonds originally priced at Treasuries plus 250 bps, or 99.553.

The Markit iTraxx SovX CEEMEA Index of Central and Eastern European, Middle East and African credit-default swaps last traded at 273 bps on Monday, compared to 265 bps last week.

Rurail 'doing well'

Also in the primary market, the recent issuance from Russian Railways (Rurail) (Baa1/BBB/BBB) is still "doing well" in the secondary market, as the Moscow-based company's 10-year bond was seen at 100.75 bid, 100.95 offered.

Russian Railways priced $1 billion 5.7% bonds at par to yield Treasuries plus 352.9 bps, according to a market source.

Saudi Electricity off highs

Though slightly off its highs earlier in the London session on Monday, both of Saudi Electricity Co.'s (A1/AA-/AA-) new sukuk closed near 100.75 bid, 101 offered, according to a market source.

To recap, the company priced $1.75 billion sukuk in two tranches on Wednesday.

The $500 million of 2.665% five-year sukuk priced at par to yield mid-swaps plus 140 bps.

A $1.25 billion tranche of 4.211% 10-year paper sold at par to yield mid-swaps plus 195 bps.

The utility company is based in Riyadh, Saudi Arabia.

Autopistas to redeem notes

On the horizon, Autopistas del Sol SA will redeem a portion of its $155,659,390 of step-up notes due 2020 on May 2, according to a notice.

U.S. Bank NA is the agent.

Autopistas del Sol is a Buenos Aires-based transportation company.

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