Argentina’s 100-year bond strengthens; oil stabilizes, still in focus; Isbank, Belarus on tap

By Rebecca Melvin

New York, June 22 – Argentina’s 100-year bonds gained 1.5 points in trade on Thursday, leaving the yield at 7.77%, or 10 basis points tighter since issue on Monday at 7.91%, market sources said.

The new Argentina notes stood at 91.75 at the close Thursday, their high of the day, compared to a reoffered issue price of 90.

The positive reception to this issue from Argentina – a high-yield credit that defaulted on $80 billion of debt in 2001 – indicates solid investor appetite for higher yielding, longer-dated paper. But whether the deal sets a precedent for Latin America credit remains to be seen. Global energy markets were roiled this week by oil prices that sank into bear market territory.

Nevertheless, this week, Mexico’s Grupo Cementos de Chihuahua SAB de CV’s (GCC) priced $260 million of 5¼% notes on Tuesday and Grupo KUO SAB de CV began a roadshow Thursday for $350 million of 10-year notes (/BB/BB).

In the Middle East region on Thursday, Turkiye Is Bankasi AS (Isbank) was about to price $500 million of 11-year bonds that were talked at 7% yield, a market source said.

Also expected to price were two tranches of dollar-denominated debt for the Republic of Belarus, a London-based syndicate source said.

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