Braskem Bonds Rise on Signs of Progress for Potential Adnoc Deal

Published 16 February 2024, 08:46:08 [BFW]

(Bloomberg) -- Braskem bonds are climbing Friday as traders turn more positive on the odds of Adnoc reaching an agreement to scoop up a majority stake in the Brazilian petrochemical maker.

Braskem’s dollar notes maturing in 2031 gain as much as 1.7 cents on the dollar to 101 cents, almost erasing the losses seen following the mine disaster in Alagoas, according to Trace data

Bonds due in 2030 climb more than 3 cents

NOTE: Adnoc made a non-binding offer to buy a stake in Braskem held by industrial conglomerate Novonor last year; Braskem has Petrobras and Novonor as its main shareholders

On Thursday, Petrobras CEO said he held talks with Adnoc during a trip to the Middle East. Local newspaper Valor reported that due diligence-studies are making progress and should conclude in up to three weeks

“The increasing likelihood of a potential deal should continue to be a tailwind to the performance of the BRASKM curve,” Lucror Analytics analyst Filipe Botelho writes in a note

Botelho moved his recommendation to buy from hold for the curve

He has a preference for the 2031 notes

By Vinicius Andrade