Suriname debuted in the international bond markets on Wednesday, selling a US $550m 10-year deal snapped up by investors who shrugged off any jitters over political or economic risk. The tiny South American country drew solid buyside interest, allowing leads to ratchet in pricing 25bp to 9.25% from initial price thoughts of 9.5% area.
Some in the market had thought high 9s to 10 more suitable, but the B1/B+/B+ rated deal drew a decent crowd thanks to index eligibility and a nice pick-up to African sovereigns. "This is a commodity story," one investor told IFR. "That is why they are comping against African countries." These included Ghana (B3/B-/B) and Zambia (B3/B/B), which had 2026s and 2027s trading at around 8.65% and 9% respectively, according to the investor. The trade came wide to Ecuador's 2024s, which were being spotted at 9%. "No one was using the Dominican Republic and El Salvador as comps," said the investor.
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