Adnoc’s Scrapped Deal Spells End of Braskem Bond Rally
- Novonor has been trying to sell its Braskem stake for years
- Barclays recommends selling the company’s bond due 2031
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Abu Dhabi National Oil Co.’s decision to back away from its billion-dollar bid to acquire a major stake in petrochemicals company Braskem SA is putting an end to one of Latin America’s best bond rallies of the year.
The company’s notes were some of the biggest decliners in both the US high-yield market and among Latin American corporates on Monday after news that the highly anticipated deal had unraveled. Dollar debt due 2030 — one of the company’s most liquid — has continued to slide and was down almost 4 cents this week as of Wednesday morning.