Southern Gas Corridor, IRSA, Shinhan, First Gulf Bank sell notes; sellers rush to buy risk

By Christine Van Dusen

Atlanta, March 17 – Azerbaijan’s Southern Gas Corridor CJSC, South Korea’s Shinhan Bank and Abu Dhabi’s First Gulf Bank PJSC were among the issuers to sell notes on a Thursday that saw rampant buying of emerging markets assets.

The spree was set off by Wednesday’s news that the Federal Reserve lowered its expectations for economic growth this year.

“Confirmation from the Fed of what many were already thinking has given a decent boost to the market,” a trader said. “With initial flows we’re seeing buyers chasing the long Turkey sovereign, Pakistan, Egypt – anything that looks to have been slightly lagging.”

The tone was strong for Latin American assets as well, with Brazil-based Vale SA recovering many of its losses from the last two days, a New York-based trader said.

In other news, market sources were whispering about a possible bond issue from Azerbaijan. The deal is expected to total between $1 billion and $2 billion.

Argentina’s Inversiones y Representaciones SA (IRSA) set initial talk in the low-to-mid-9% area for a $300 million issue of notes due in seven years, a market source said.

Argentina’s Yacimientos Petroliferos Fiscales SA (YPF) set talk in the 8 7/8% area for a dollar-denominated issue of benchmark-sized notes due in March of 2021, a market source said.

© 2015 Prospect News.
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