Strong demand for new Tajikistan, Uruguay deals points to ongoing constructive tone in EM

By Rebecca Melvin

New York, Sept. 7 – The inaugural dollar issue of the Republic of Tajikistan met with strong demand on Thursday pushing final terms well below initial talk. And a local currency deal from the government of Uruguay was also warmly received, demonstrating an ongoing supportive tone for emerging markets sovereign debt in both major and local currencies, a New York-based strategist said.

Tajikistan is untested and Uruguay has been largely ignored, so seeing the type of receptions both deals had sends a message about the state of the global pool of funds and access to it, Michael Roche, emerging markets fixed-income strategist for Seaport Global Securities LLC, told Prospect News.

For further evidence, Roche noted that Turkey priced a $1.75 billion add-on to its 2047 notes this week, and Ukraine, Empresa Nacional del Petroleo (ENAP), Chile’s state-owned energy development and production company, Mexico City Airport and Coca-Cola Icecek AS are all on the calendar for pricing new notes issues imminently.

The constructive tone encompasses a broad range of both sovereigns and corporates and high and low quality credits, Roche said.

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