New notes from Mubadala, Gazprom, CAF; SECO popular; investors uncertain about Ukraine

By Christine Van Dusen

Atlanta, Nov. 5 – Abu Dhabi’s Mubadala GE Capital Ltd., Russia’s OJSC Gazprom and Venezuela’s Corporacion Andina de Fomento (CAF) were among the issuers to print notes on a Wednesday with tighter spreads for Middle Eastern assets.

“Saudi Electricity Co. was popular today,” a London-based trader said. “The curve there has steepened up lately, with the 2017s to 2023s the best part of 10 basis points to 15 bps better on the week.”

Perpetuals have remained somewhat popular, he said, with the Emirates Islamic Bank issue trading at 101 3/8 bid.

“High-yielders are again a mixed bag,” he said. “Dar al-Arkan Holdings’ 2016s and 2018s are seeing buyers and the 2015s are two-way, like the 2019s.”

Kuwait Energy Co.’s 2019s were off the recent highs, he said, while Dubai Holding’s 2017 sterling notes saw two-way activity between 102.62 and 102.87.

“Long-dated Abu Dhabi names are still being driven higher,” he said.

In other trading, sovereign bonds from Ukraine have, so far this week, suffered as investors have wondered whether the crisis was any nearer an end.

“With the market fearful that diplomatic means to resolve the conflict in the east are getting exhausted, the sovereign took a beating,” said Svitlana Rusakova of Dragon Capital.

The bonds have moved as much as 2 points lower on limited volumes, she said.

“Quasi-sovereigns still outperformed, down a half-point,” she said.

© 2015 Prospect News.
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