Abu Dhabi Commercial Bank issues notes; Lat-Am tightens; Islamic Development Bank on deck

By Christine Van Dusen

Atlanta, March 3 – Abu Dhabi Commercial Bank PJSC sold notes on Tuesday as Asian bonds remained firm and Latin American corporate bonds ramped tighter amid weaker U.S. Treasuries.

Cash bonds from Asia outperformed credit default swaps spreads, a London-based trader said.

Bonds closed unchanged to 3 basis points tighter as buyers for long-dated paper emerged throughout the day. And the oil complex in China closed 1 bp to 3 bps tighter, with Cnooc Inc.’s 2024s a particular standout, he said.

From Latin America, high-grade names from Mexico were particularly difficult to source, a New York-based trader.

And bonds from Brazil-based Petroleo Brasileiro SA narrowed again as investors likely made assumptions about upcoming results and write-downs, he said.

“It’s as if the market is now discounting the other ratings agencies, following Moody’s downgrade,” he said. “But it could also be some longs out there who are ramping this thing tighter, to make the plentiful shorts pay. And boy, did they ever.”

Islamic Development Bank set talk in the mid-swaps plus 10-bps area for a dollar-denominated and benchmark-sized issue of notes due in 2020, a market source said.

A roadshow for the Islamic bonds is underway and will conclude on Thursday.

In other news, China-based Times Property Holdings Ltd.’s new issue of $280 million 11.45% notes due in 2020 drew more than $1 billion in orders, a market source said.

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