Morning Commentary: EPP postpones euro five-year notes; Colombia slightly wider after election

By Rebecca Melvin

New York, June 18 – Monday claimed another emerging markets debt primary deal, with EPP NV opening books on a euro-denominated benchmark only to announce shortly afterwards that it was postponing the transaction due to adverse market conditions.

Initial price talk for the Polish real estate investment company’s debut euro five-year notes (expected ratings: Ba1/BB+) was in the mid 3% area. And the company aimed to price a deal that was more than €400 million in size.

The postponement is the latest of a couple of deals that failed to price in the current market. Africa-focused Vivo Energy plc announced last week that it decided not to proceed with a planned issue of notes due to adverse market conditions.

EPP was to have been the first to price by an issuer of the Central & Emerging Europe region since early May and raises fears that the market may be shutting down early for the summer lull, with chances slimming that deals can push through before September, market sources have said.

Meanwhile the Republic of Colombia’s bonds were slightly lower and slightly wider in spread across the curve early Monday after conservative candidate Ivan Duque won Colombia’s presidential election as expected on Sunday.

“It seems the election news was already priced in,” a New York-based market source said.

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