Primary market sees deal from QNB; Petrobras sees support; Turkey widens; Emaar on deck

By Christine Van Dusen

Atlanta, Aug. 31 – Qatar National Bank SAQ sold notes on a Wednesday that saw support for Brazil-based Petroleo Brasileiro SA’s bonds and negative dynamics for notes from Asia.

Petrobras sold an oilfield for $2.5 billion, which was seen as a good move for the company.

“This announcement supported Petrobras bonds, as it looks like the company will succeed in its assets divestment program,” according to a report from Schildershoven Finance BV.

From Asia, dollar sovereign bonds struggled on Wednesday.

“Negative dynamics,” the report said. “Indonesian and Malaysian 10-year bonds are lower by 12 basis points and 10 bps, respectively.”

In other trading, the bond curve for Turkey moved 4 bps to 5 bps wider, a trader said.

Looking to the new issue calendar, investors were pleased to see some activity on Wednesday.

“There are first signs of life and activity in the [emerging markets] primary market again,” a London-based analyst said. “It’s mainly the sovereigns that have been in the media’s and investors’ focus as we await potential deals from Bahrain, Kuwait and Saudi Arabia.”

In deal-related news, Slovenia launched a €1 billion tap of its 1˝% notes due in March of 2035 at mid-swaps plus 98 bps, a market source said.

Dubai-based property developer Emaar Properties will set out on Sept. 4 for a roadshow to market a dollar-denominated issue of Islamic bonds, a market source said.

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