New Bahrain oil notes trade up; Banco do Brasil edges up; Azul prices; Venezuela weaker

By Rebecca Melvin

New York, Oct. 19 – Bahrain’s Nogaholding 7½% notes due 2027 traded up on Thursday after the sovereign priced $1 billion of the notes tighter than initial talk and at a spread of 516.2 basis points over U.S. Treasuries.

Elsewhere, Belarus supermarket operator Eurotorg LLC priced $350 million of 8¾% five-year eurobonds at par with a yield spread of mid-swaps plus 668 bps.

In Latin America, Banco do Brasil’s new 4 5/8% notes due 2025 traded up to about 100.45 to 100.55 by the market close after the bank’s Grand Cayman branch priced $1 billion of the notes at 99.551 for an initial yield of 4¾%. The bonds traded up to at least 100.6 on Thursday, according to a New York-based trader.

Also in Latin America, Azul SA priced $400 million of 5 7/8% seven-year notes at 99.294 for an initial yield of 6%, according to a market source.

The Venezuela and the Petroleos de Venezuela SA bonds were very weak on Thursday, dragging lower since Monday when the results of state governor elections showed unexpected support for the socialist ruling party and President Nicolas Maduro. But investors are not focused so much on the elections right now as on coupon payments that were due last week and still have not been paid.

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