Morning Commentary: Uzbekistan’s new notes trade down; new Turkey sukuk does well

By Rebecca Melvin

New York, Feb. 14 – Uzbekistan’s newly priced global bonds traded down in the early going on Thursday after $1 billion of the notes were priced at par in two tranches due 2024 and 2029.

Both the $500 million of 4¾% notes due 2024 and $500 million tranche of 5 3/8% 2029 notes traded down to 99.38 bid, according to a market source.

The notes traded down 0.5 point, a London-based market source said. “Not surprising after they moved pricing down 60 bps.”

But the Republic of Turkey’s new $2 billion three-year Islamic bond, or sukuk, went “very, very well,” the London-based source said, noting that the order book for the deal, Turkey’s third benchmark-sized global bond issue this year, topped $5 billion and the new issue premium was just 10 bps.

The sukuk came with a 5.8% profit rate and yield spread of 318.4 basis points over mid-swaps, which was tight to talk for a profit rate in the 5.9% area.

Meanwhile, Latvia’s newly priced 1 7/8% 30-year notes traded up slightly to 99 after that issue priced at 98.77, and the recently priced Credit Bank of Moscow paper was wrapped around reoffer on Thursday.

© 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.