Middle East, Africa enjoy strong tone; Gabon tap improves; Peru’s Cerro del Aquila to price

By Rebecca Melvin

New York, Aug. 8 – Emerging markets saw a positive tone in the Middle East and Africa regions on Tuesday where the Gabonese Republic priced a small tap as investors watched political developments including Kenya’s presidential elections and a no confidence vote on the slate regarding South Africa president Jacob Zuma.

The new Gabon 6.95% notes due 2025, of which $200 million priced at 100.587 to yield 6.85%, improved 5 or 6 basis points after the break, a London-based trader said.

On Monday, South Africa’s sovereign debt improved by 5 to 7 bps after it was announced that the vote would be secret, and on Tuesday, spreads continued to hold in.

Elsewhere, as Kenyans queued to vote for a new president, that sovereign’s 6 7/8% notes due 2023 were seen 102½ bid, 103¼ offered, with a spread that was in about 35 bps.

The Middle East was also firm with the well-received Iraq notes that priced last week trading strongly at 100¼ bid, 100½ offered.

The one sore point was Lebanon. But there was no obvious reason for the weakness in the debt curve there, a source said.

From Latin America, Peru-based Cerro del Aguila SA plans to issue $650 million of 10-year senior notes (Baa3/BBB-). The notes were being talked with a yield over Treasuries in the low 200 bps range.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.