Emerging markets debt improves again; year-end result looks set; market eyes NiQuan deal

By Rebecca Melvin

New York, Dec. 13 – Emerging markets debt improved again on Thursday, amid mixed performance in the broader markets.

The credits hardest hit in recent months have been the ones outperforming, including Argentina, Turkey, South Africa and Mexico, a New York-based market source said. But the positive tone the market is sporting is unlikely to change full-year results for 2018, the source said.

For the year so far, the J.P. Morgan emerging markets’ U.S. dollar-denominated sovereign bond index is down 4.9%, and the source predicted a negative return at about that same level would stand at the close of the year.

No pricing emerged on planned notes for Trinidad & Tobago’s NiQuan Energy Trinidad Ltd., although fixed income-investor meetings were set to wrap up Thursday. However, meetings may continue as the deal is being sold to very specific investors in the Caribbean, which could mean a longer process, a New York-based sellsider, away from the deal, said.

“It’s not the rosiest market,” the source said, but it may get done in “a private placement-esque” way.

Oppenheimer and Republic Bank are bookrunners of the deal, the proceeds of which would go toward facility development of the gas to liquids operator based in Port-of-Spain.

© 2015 Prospect News.
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