EM LATAM CREDIT: Simpar: Asset Sale - Positive
(SIMHBZ; NR/BB-/BB-)
"Simpar agrees sale of Ciclus Ambiental for R$ 1.1 billion to Aegea" - Bbg
Following through on previously announced plans to sell assets and reduce debt, Brazil logistics and transport company Simpar agreed to sell its solid waste subsidiary Ciclus Ambiental to Brazil environmental services and water company Aegea for BRL1.1bn.
BRL800mn will be available at closing and two other instalments of BRL150mn to be paid April 2026 and April 2027.
Simpar reported strong 2Q 2025 results which we commented on last week:
https://mni.marketnews.com/45pqmDE
SIMHBZ 31s were last quoted USD83.95, up 3.4 points today, 2.75 points QTD and 8.5 points YTD.
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BONDS: EGBs-GILTS CASH CLOSE: Bull Flatter On Trans-Atlantic Tariff Threats
European curves bull flattened Monday.
- The EGB / Gilt rally started overnight following a weekend Bloomberg report that the EU was set to formulate a plan to retaliate against the US in case of a "no deal" scenario on tariffs by the White House-set Aug 1 deadline.
- This followed Friday's FT report that US President Trump was seeking a minimum 15-20% EU tariff.
- Indeed the trade conflict appeared to be a broader undercurrent, with some anticipation of the swiftly-approaching Aug 1 date more broadly boosting long-end FI and weakening the USD (although a rise in equities appeared to be an outlier in this move).
- Helping the bullish move follow through in mid-afternoon was a well-received BoE long-end APF sale which saw bull flattening extend.
- Carrying on from last week's trend, Gilts underperformed, but both the UK and German curves bull flattened on the day.
- Periphery and semi-core EGB spreads tightened, with 10Y OAT/Bund down more than 2bp.
- This week's calendar highlights include flash PMIs and of course the ECB decision Thursday - our preview of the latter will be out Tuesday.
Closing Yields / 10-Yr EGB Spreads To Germany
- Germany: The 2-Yr yield is down 4.6bps at 1.824%, 5-Yr is down 7.2bps at 2.168%, 10-Yr is down 8.2bps at 2.613%, and 30-Yr is down 9.3bps at 3.139%.
- UK: The 2-Yr yield is down 3.3bps at 3.869%, 5-Yr is down 5.4bps at 4.035%, 10-Yr is down 7.1bps at 4.603%, and 30-Yr is down 8.3bps at 5.428%.
- Italian BTP spread down 1.8bps at 83.7bps / French OAT down 2.5bps at 67.9bps
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