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Daily Roundup

CAF prices 5-year dollar bond – O1 Properties places upsized Eurobond – Votorantim Cimentos mandates banks for dollar trade – State of Rio de Janeiro defaults on bond payments – QCB sells new local currency notes

Sep 21, 2016 // 4:30PM

Latin American development bank Corporacion Andina de Fomento (CAF) priced a US$1bn 5-year bond at 99.811 paying a coupon of 2.125% and yielding 2.165%.  Barclays, Bank of America Merrill Lynch, Citigroup and HSBC were bookrunners on the deal.

O1 Properties has placed a US$350mn 5-year Eurobond at 8.50%, upsized from an initial US$300mn targeted amount. Credit Suisse, Goldman Sachs, JP Morgan, Raiffeisen Bank and VTB Capital managed the sale.

Votorantim Cimentos has mandated Banco Votorantim, Bank of America, Citigroup, HSBC, JP Morgan and Santander to lead the sale of new benchmark senior US dollar notes.

Qatar Central Bank raised QAR4.6bn (US$1.26bn) from a mixture of conventional and Islamic bonds in maturities of three, five, seven and 10 years this week. The move follows several months of cancelled monthly note sales, signalling that bank liquidity is under less pressure.

Saudi Arabia is aiming to raise up to US$16.5bn in its debut international bond sale later this month, according to a note from Capital Economics. The issuance would make it one of the largest in the emerging market universe, on par with Argentina's record triple tranche sovereign bond earlier this year.

The African Development Bank (AfDB) and Fortis Microfinance Bank (Fortis) have signed a NGN1bn loan agreement that will see the latter deploy the funds for SMEs in Nigeria.

The State of Rio de Janeiro defaulted on debt owed to the Inter-American Development Bank earlier this month, prompting an S&P downgrade this week as the grace period for making the repayment ended. The state has further payments due later this month but it is unclear whether it will be in a position to make them.

Emerging market inflows into both debt and equities dropped to just US$5.5bn by mid-September, just one third of cumulative flows seen in the previous month according to figures released by the IIF. Uncertainty over G3 monetary policy was the biggest driver behind the sharp change in flows, it said.

Argentina's Central Bank cut its 35-day reference rate by 50bp to 26.75% for the eighth week in a row as it looks to stimulate further economic activity.

Namibia is looking to issue up to US$5bn in ZAR-denominated notes over the next five years to shore up new government investment, according to Bloomberg.

The Nigerian Central Bank has left its key lending rate unchanged at 14% despite expectations of continued tightening to rein in inflation.

Saudi Binladin Group (SBG) is seeking a second extension on an SAR817mn (US$217.9mn) Islamic loan being used to fund construction at the kingdom's Grand Mosque, according to multiple reports. This is the second loan repayment extension being sought by the troubled construction services provider since July.

Hungary’s Central Bank has decided to cap 3-month benchmark deposits HUF900bn, which according to analysts may crowd out as much as HUF300bn.

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