Banco Safra eyes five-year dollar benchmark of notes; inflows show record start to 2018

By Rebecca Melvin

New York, Jan. 26 – Emerging markets wrapped up a strong week of new issuance and secondary market performance on Friday, and market players began to turn their attention to next week. The primary forward calendar was beginning to grow with Brazil’s Banco Safra SA embarking on fixed-income investor meetings on Friday for a dollar-denominated benchmark of five-year notes, a market source said.

There was also chatter about Mexico’s Credito Real SAB de CV Sofom ER pricing a Swiss franc-denominated deal and of bookrunner Itau BBA managing an issue of perpetual notes, but those reports were unconfirmed.

The Federal Open Market Committee is set to meet next week, but markets were not seen turning skittish before the central bank’s next update on Wednesday.

In the meantime, emerging markets continued to see strong inflows. The emerging markets debt-dedicated funds’ inflows total $8.8 billion year to date, the strongest start on record, according to Morgan Stanley research published on Thursday.

In addition to large issues by Chile and Petrobras priced this past week, Brazil’s Natura Cosmeticos SA priced its debut cross-border bond issue with $750 million of five-year notes, Argentina’s MSU SA priced $600 million of seven-year non-call four bonds, and Agua y Saneamiento Argentinos (AySA) priced $500 million of five-year non-call three notes.

© 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.