EM CEEMEA CREDIT
| MNI EM Credit Market Wrap - CEEMEA (10 Feb) |
- U.S. Treasuries are showing 10Y @ 4.46%, +3bp, with 5s/10s +1bp wider @ 15.48. Primary market was active with investor calls today. Albania mandating banks to issue a EUR 10Y benchmark, we estimate a FV Z+275bp. Saudi Electricity co (SECO) also plans to issue USD 5Y and 10Y green sukuks, where we estimated FV at Z+95bp and Z+120bp, in the secondary 10Y was 0.25pt lower in cash terms (source BBG). Gabon also tendered for their remaining short-dated bonds which were looking +1.4pt in cash terms and concurrently said they would issue a new private placement bond.
In secondary, sovereign spreads were marginally wider on the day. Israel curve was 10-20bps wider across the curve, with Egypt the outlier around 10bps tighter on limited news flow. In corporate news flow, Aragvi 11.125 29 bonds were almost 1pt higher in cash terms following Fitch affirming its B+ credit rating. Aldar also reported FY24 results which were solid, bonds were up around 0.25 to 0.5pts across the curve with the stock posting +6.8%. Aldar’s peer EMAAR is also due to announce results today. Transnet also signed two operator agreements today, following CEO’s remarks last week they would need as much as ZAR50bn support from the government, the 8.25% 28 bonds were unch.
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