EM weakness with broader markets; Lat-Am notes struggle; Abu Dhabi spreads widen; deals ahead

By Christine Van Dusen

Atlanta, May 3 – Spreads for many emerging markets bonds widened on Tuesday alongside the larger market’s weakness, which stemmed from concern about economic conditions in China and Europe.

“The broader markets are struggling with stocks,” a London-based trader said. “Spreads are closing out wider without huge volumes.”

Some weakness crept into Latin American credit on Tuesday, “pushing some credits more than just a little bit lower,” a New York-based trader said.

Overall, emerging markets credit is expected to improve, a London-based strategist said.

In deal-related news, Dominican Republic-focused AES Andres Dominicana SPV set talk in the low-to-mid-8% area for a dollar-denominated issue of notes due in 10 years, a market source said.

Panama’s Aeropuerto Internacional de Tocumen SA (Tocumen International Airport) set talk in the 5˝% area for a dollar-denominated issue of notes due in May of 2036, a market source said.

Qatar-based real estate developer Ezdan Holding Group has mandated banks to lead its $2 billion sukuk program, a market source said.

A roadshow will begin on Thursday and take place in Asia, the United Arab Emirates and Britain.

Venezuela’s Corporacion Andina de Fomento (CAF) is looking to issue dollar-denominated notes, according to a company filing.

Slovenia is planning to issue euro-denominated notes alongside a tender offer, according to a filing from the sovereign.

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