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Daily Roundup

Central Bank of Turkey sets up US$200bn infra fund – Mexican sovereign, banking system revised to negative – Saudi Arabia to raise SAR20bn – Xinyuan Real Estate Co to issue follow-on dollar bond

Aug 24, 2016 // 4:57PM

  • The Central Bank of Turkey has cut the overnight lending rate by 25bp to 8.5%, prompting a brief rise in the country's government bonds
  • Turkey is setting up a sovereign wealth fund to help back infrastructure projects that don't have a build-to-operate (BTO) financing model. The fund, which could see more than US$200bn put to use, will be dedicated mainly to transport-related infrastructure projects, according to the country's Transport, Maritime and Communication Minister Ahmet Arslan
  • S&P has revised its outlook on the Mexican sovereign from stable to negative, citing lower than expected growth and increased government debt. The move means there is a one in three chance that the sovereign could lose its BBB+ within the next 24 months
  • Moody's has revised its outlook on the Mexican banking system from stable to negative, arguing that asset quality could deteriorate in the lower-than-expected growth environment. Mexico's GDP is expected to grow at 2.5% for the coming year while loans are expected to grow by 12%, according to a recently published report by the CRA
  • Brazil's current account deficit was released this week. The country's deficit exceeded US$4bn in June, while analysts were expecting a deficit in range of US$3.7bn. The figures were released a day after Brazil's government committed to engaging in a splashy public relations campaign to help restore global confidence in the country
  • Saudi Arabia will aim to raise SAR20bn in bond sales to local banks in order to shore up the country's deficit, according to a report from Maaal
  • Piramal Enterprises and Bain Capital Credit are partnering to create a US$1bn fund to invest in restructured credit in India, according to a report from the EconTimes
  • Xinyuan Real Estate Co looks to issue senior unsecured dollar-denominated notes this week in order to refinance its offshore senior notes due 2018 and other existing debts. The issuance will follow its CNY400mn bond issued this week
  • The Central Bank of Nigeria has suspended nine banks from the interbank currency market for failing to remit money owed to the government, according to a report from Reuters
  • Slovenia is planning to sell Euro-denominated bonds to buy dollar-denominated notes maturing in 2022, 2023 and 2024
  • Fitch downgraded 77 of its 198 internationally rated Latin American corporates in the past 12 months according to a recently published report on the company's website. The downgrades, largely due to plummetting cashflows, were concentrated in Brazil, where 56 of the downgrades occurred
  • Argentina's Central Bank cut the 35-day Lebac interest rate by another 50bp to 29.25% as core inflationary pressures ease
  • The National Bank of Hungary has left the benchmark 3-month interest rate unchanged

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