Bancomer and Sritex sell notes; concerns increase for Ukraine, Russia conflict

By Christine Van Dusen

Atlanta, Nov. 7 – Mexico’s BBVA Bancomer SA and Indonesia’s PT Sri Rejeki Isman Tbk. (Sritex) sold notes on Friday as bonds from Ukraine continued to weaken on concern that Russia could be sending more of its military vehicles across the border.

Ukraine officials accused Russia of moving tanks into Eastern Ukraine, a claim denied by Russian officials. In response to concern about this possible escalation in the conflict, Ukraine sovereign bonds fell about a point into the end of the week, a trader said.

“With limited activity in corporates and quasi-sovereigns, those were marked a half-point to one point lower,” she said.

Meanwhile Russia’s 2030 bonds were trading between 110¾ and 111¼ while the sovereign’s 2043s and 2042s moved about 1¼ points lower, a London-based trader said.

“Flows seem to be balanced at these levels,” he said.

Russia’s credit default swaps spreads for Russia were seen at 276 basis points over Treasuries, off an earlier wide of 285 bps.

In other news on Friday, Mexico-based construction company Empresas ICA SAB de CV could sell bonds in 2015, a market source said.

In its new deal, Bancomer priced $200 million 5.35% notes due Nov. 12, 2029 at 99.786 to yield Treasuries plus 300 bps.

In another new deal, Sritex priced a $70 million tap of its 9% notes due April 4, 2019 at 104.25, matching talk.

© 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.