New tap from Russia; oil prices, Fed, BOJ boost sentiment; Argentina, UNB roadshows ahead

By Christine Van Dusen

Atlanta, Sept. 22 – Russia tapped its dollar notes due in 2026 on a positive Thursday for emerging markets assets, as oil prices saw some support and the primary market got a boost from recent news from the Federal Reserve and the Bank of Japan.

“The new measures by the Bank of Japan and the idleness of the Fed yesterday struck a positive tone for markets, and we have seen a very strong start into the day,” a London-based trader said.

Though the tone was improved for Latin American bonds, institutional investors remained subdued in their buying, “not inclined to chase it higher here, and it’s doing a fine job without their help,” a New York-based trader said. “Longer maturities in [Mexico] that had swooned markedly lower are moving right with a vengeance, it seems.”

Banks from Colombia were grinding higher, “but certainly not gapping,” he said. “Even the higher-yielding sub debt is barely higher.”

The same could be said for high-grade names from Chile, which moved higher but not by much over Wednesday’s levels, he said.

“Latin American sovereigns and credit default swaps are now well off their tights of the day, and I’m not convinced corporates will follow that trend,” he said.

Meanwhile, debt from Turkey performed strongly on Thursday, with sovereign cash tightening 10 basis points and banks and corporates moving in by 5 bps, another trader said.

“Rocket-fueled start,” he said. “Seeing buyers of the long end.”

This was also “supported by what is seen by investors as fairly positive comments from Moody’s,” a London-based analyst said. “The rating agency said that the shock to the economy from the failed coup had largely dissipated, which raised hopes that Turkey will remain an investment grade name. This certainly supports our view.”

Russia prices tap

In its new deal, Russia priced a $1.25 billion tap of its 4¾% notes due in 2026 at 106.75, a market source said.

The notes were initially talked at 3.99%.

VTB Capital was the sole bookrunner for the deal.

Other details were not immediately available on Thursday.

Roadshow for UNB

Abu Dhabi’s Union National Bank PJSC will market a dollar-denominated issue of notes due in five years at a roadshow starting Sept. 25, a market source said.

Other details on the Regulation S deal were not immediately available on Thursday.

Argentina sets roadshow

Argentina will set out on Sept. 26 for a roadshow to market a dual-tranche issue of benchmark-sized and euro-denominated notes, a market source said.

BBVA, BNP Paribas and Credit Suisse are the bookrunners for the Regulation S deal.

The roadshow will conclude on Sept. 29.

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