Burgan Bank advances deal; higher oil prices keep EM firm; Emaar ahead; KDB seeks issuance

By Christine Van Dusen

Atlanta, Sept. 6 – Kuwait’s Burgan Bank SAK advanced a new deal on a firm Tuesday for emerging markets assets, with higher oil prices and stronger currencies after the Labor Day holiday in the United States.

By Tuesday morning, emerging markets bonds were seeing support from a sell-off in rates, a London-based analyst said.

“Undoubtedly, today already marks the busy season for European investment grade primary market activity, with a bunch of deals announced this morning, but it has remained calm in [emerging markets].”

In trading, dollar-denominated sovereign bonds from Asia were mixed on Tuesday, with Indonesia’s 10-year notes up 24 basis points, according to a report from Schildershoven Finance BV.

“Fairly active day, with rates rallying into the close back to 1.55%,” a London-based trader said. “Spreads, and the market in general, are trading well.”

From Latin America, trading was slow on Tuesday, though the tone was improved, a New York-based trader said.

Notes from Turkey opened with a better tone on Tuesday, a trader said.

Investors were looking ahead to the issue expected from Dubai-based property developer Emaar Properties, which set out on Sept. 4 for a roadshow to market a dollar-denominated issue of Islamic bonds, a market source said.

Korea Development Bank is planning to issue two tranches of dollar-denominated notes, according to a company filing.

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