Buyers step in to Venezuela; Asia deals continue to flow; Europe, Middle East ‘super quiet’

By Rebecca Melvin

New York, Aug. 25 – Some buyers stepped in to lift Venezuela bonds on Friday in relief that new U.S. restrictions on the country spare U.S.-based trading of Venezuela bonds and instead take aim at the regime led by President Nicolas Maduro.

“Flows were more buyers than sellers,” a trader said.

Meanwhile worries remained about whether J.P. Morgan will remove Venezuelan debt from its emerging market bond index.

PDVSA’s 8½% notes due in November traded Friday at the high end of Thursday’s market of 92½ bid, 94½ offered. These bonds were 90½ bid, 91½ offered a week ago.

Elsewhere, new deals continued to flow in Asia in both hard and local currencies early Friday, but emerging markets elsewhere were mostly quiet, sources said.

Franshion Brilliant Ltd. priced a $200 million add-on to its existing $300 million of 4% perpetual notes. In local currencies, Singapore’s Keppel Telecommunications & Transportation Ltd. priced S$100 million of seven-year fixed-rate notes at par with an initial coupon of 2.85%; China’s Guolian Securities Co., Ltd. issued RMB 1 billion of 5% three-year bonds on Thursday; and Panda Green Energy Group Ltd. issued RMB 500 million of additional 6.72% corporate bonds due 2020.

In the Central & Eastern Europe, Middle East and Africa region, there were no deals announced, and trading was “super quiet overall,” a trader said.

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