Primary sees Petrobras; sentiment weakens; Turkey under pressure; IDC, Egypt prep issues

By Christine Van Dusen

Atlanta, Jan. 9 – Brazil’s Petroleo Brasileiro SA approached the primary market on a Monday that saw sentiment among emerging markets investors weaken in the wake of the United States’ job report and oil price volatility.

Sentiment “started to wane on Friday in the aftermath of the job market report,” a London-based analyst said. “As we get into the first full week in 2017, markets remain somewhat cautious.”

Meanwhile, Turkey remained under pressure as the government continued to fight militants.

Some market-watchers were also keeping an eye on Yingde Gases Group Co. Ltd. after the company received a preliminary offer from Air Products & Chemicals Inc.

“The news should support Yingde Gases’ eurobonds. However, the price volatility may remain in near future,” according to a report from Schildershoven Finance BV.

In deal-related news, Egypt will set out on Jan. 17 for a roadshow to market an issue of eurobonds, a market source said.

The sovereign was previously expected to issue notes before the end of 2016, but a deal never materialized.

Investment Corporation of Dubai (ICD) is planning to issue a benchmark-sized and dollar-denominated notes this month, a market source said.

Citigroup, Emirates NBD, HSBC, JPMorgan, National Bank of Abu Dhabi and Standard Chartered are the bookrunners for the deal, which may or may not be a sukuk issuance.

© 2015 Prospect News.
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