Turkey widens at notes issue; Qatar under pressure; Cementos de Chihuahua launches tender

By Rebecca Melvin

New York, June 7 – The Republic of Turkey priced €1 billion of 3¼% eight-year notes below par on Wednesday after that nation’s debt market opened strong, but sold off suddenly in reaction to news the Turkish parliament was voting to fast track troops to Qatar, a market source said.

Ahead of pricing of the Turkish euro deal, the market opened “quite well bid and tighter by about two basis points, but after a swift change of sentiment, it was wider by about four bps,” a London-based market source told Prospect News.

The terms for the euro deal were deemed not terribly interesting, but news that Turkish lawmakers adopted a law late Wednesday to allow Turkish troops to be stationed in Qatar “spooked” investors, the market source said.

In the secondary space, Qatar, which reeled for the better part of two days from its forced breakoff of diplomatic and commercial ties with the four Middle Eastern countries, was flat to weaker on Wednesday.

In Latin America, Venezuela’s and Brazil’s credit markets were mostly treading water, a New York-based analyst said. But in Mexico, Grupo Cementos de Chihuahua SAB de CV launched a cash tender offer and consent solicitation for its $260 million of outstanding 8 1/8% senior notes due 2020.

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