Estonia’s Luminor prices despite market turbulence; Mabe, CMI join Latin America calendar

By Rebecca Melvin

New York, Oct. 10 – Luminor Bank AS (Estonia) announced and priced €350 million of 1.5% three year notes on Wednesday despite a selloff that hit the broader markets, as risk-off sentiment drove a volatility spike.

The Luminor notes priced to yield mid-swaps plus 150 basis points. Also in emerging markets, the Latin America region has managed to cue up a trio of planned new issues in recent sessions. Mexican appliance maker Controladora Mabe SA de CV announced a $350 million offering of senior unsecured notes with an up to 10-year maturity, and Guatemala’s Corporacion Multi Inversiones (CMI) will begin investor meetings on Thursday regarding a dollar-denominated green bond of intermediate maturity. These deals join emerging markets-focused Millicom International Cellular SA, which plans to price a $500 million deal of senior unsecured notes due 2026.

In the secondary market, bond pricing was weaker. In the early going, rates were mostly steady and spreads were only narrowly mixed in the Middle East and Africa region. Later, investors sought the safety of U.S. Treasuries, driving yields lower. The CBOE volatility index spiked more than 43%, and U.S. stocks had their worst day since February, with the Dow Jones industrial average closing down 831 points, but the tech-heavy Nasdaq stock market doing even worse, closing down 4%, with selling continuing in after hours in New York.

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