New South Africa edges up on break; Argentina bonds outperform; market eyes Pemex issues

By Rebecca Melvin

New York, May 16 – South Africa’s newly priced 2030 notes and 2048 notes edged up slightly to over par in the early going on Wednesday after the sovereign priced $1.4 billion of the 12-year notes and $600 million of the 30-year notes tight to initial talk, according to sources.

The South Africa 5 7/8% notes due 2030 were 100½ bid, 100¾ offered. The longer-dated 6.3% notes due 2048 were quoted at 100.43 bid, 100.68 offered.

In addition, Unigel Luxembourg SA has priced $200 million of 10½% five-year notes in a deal that was revised from initial talk to have a shorter tenor and yield that is wide compared to initial price thoughts.

The market also got official word that Paraguay’s Banco Regional SA has put on hold its planned offering of new notes and cancelled a concurrent tender offer for its existing 8 1/8% notes due 2019.

Argentina credit had a respite on Wednesday, tightening some 31 bps to a spread of 450 bps over Treasuries and outperforming the overall market, according to a New York-based market source.

Elsewhere, Petroleos Mexicanos SAB de CV announced and priced on Wednesday €3.15 billion of senior unsecured notes in four tranches (expected ratings: Baa3/BBB+/BBB+). The combined order book stood at more than €4.5 billion at the time pricing guidance for the tranches was released.

© 2015 Prospect News.
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