Bips & Pieces
Bahrain Hits the Road for Dual-Tranche Sukuk in Crucial Test for Speculative-Grade Issuers
Bahrain has hired banks to help it raise fresh funding in what could be a crucial test for junk-rated sovereigns.
7 May 2020
Private Sector Deleveraging Required to Plug EM Current Account Deficits - IIF
As countries worldwide are forced to spend unprecedented amounts to counter the economic and health effects of COVID-19, fiscal and current account deficits are set to rise globally. Rocky market conditions mean most EM sovereigns will struggle to access external funding, however, leaving the local private sector to pick up the slack, according to a recent report from the Institute of…
7 May 2020
District of Bogata to Issue COP600mn in Bonds
Bogata’s District Ministry of Finance yesterday announced plans to issue COP600bn (approx. USD152mn) pesos in local bonds to counter the effects of the COVID-19 pandemic. The bonds are AAA rated and the transaction is being arranged by Itau.
7 May 2020
Chile Caps Off Busy Few Weeks for Latin American Sovereigns with Dual-Tranche Bond Outing
Chile hit the markets this week with a dual-tranche, dual-currency bond to raise just over USD2bn, capping a busy month for Latin American sovereign issuers.
6 May 2020
Kenya to Raise KES50bn in Domestic Markets in May
Kenya’s central bank said it plans to raise KES50bn (approx. USD471mn) in five-year paper in May this year.
6 May 2020
Emerging Market Oil & Gas Operators Could Benefit from Quasi-Sovereign Status
With oil having recently dipped into negative territory and investors turning bearish on emerging markets and other risk assets, you would think the prospects for emerging market oil & gas companies in international capital markets would be slim to nil. But you may be wrong.
6 May 2020
Emerging Market Debt Outflows Tapered Dramatically in April
Net emerging market debt outflows have dropped dramatically through much of April, but central bank backstops in investment grade developed market debt may limit how quickly EM bonds bounce back.
6 May 2020
Lebanese Political Parties, For Now, Agree to Approach IMF
Lebanon is a step closer on the path towards economic reform, as the government agrees to approach the IMF for support. Hezbollah finally withdrew their opposition to the country requesting funds from the multilateral, which could help the struggling economy, but other political spats risk delyaing the process.
5 May 2020
Garuda Sukuk Restructuring Could be a Challenge as Smallholders Make Consensus Difficult
Indonesia’s national airline Garuda may struggle to restructure a sukuk due next month as the sheer number of debt holders throws the possibility of gaining a representative credit committee consensus into question.
5 May 2020
IMF Approves USD10.8bn Two-Year Flexible Credit Line with Colombia
The International Monetary Fund (IMF) has approved a new USD10.8bn flexible two-year credit line with Colombia, which the country can tap into in order to address downside risks presented by the coronavirus pandemic.
4 May 2020