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Daily Roundup

Saudi Arabia to begin roadshow this week for US$10-US$15bn bond – Russia could increase external borrowing limit to issue US$1bn-equivalent yuan bond – Compania General de Combustibles receives US$127mn loan – BYD Co. receives CNY60bn loan commitment – Brazil’s Congress approves bill to limit government spending

Oct 11, 2016 // 10:24AM

Saudi Arabia is to meet investors over the next week ahead of the country's first international bond issuance. The roadshow will begin in London on Wednesday and finish a week later in Boston and New York according to banking sources speaking to the Wall Street Journal. The deal is expected to be between US$10-US$15bn in size. Citigroup, HSBC and JP Morgan are joint global coordinators, and Bank of China, BNP Paribas, Deutsche Bank, Goldman Sachs, Morgan Stanley, MUFG and NCB Capital have been mandated as joint lead managers and joint bookrunners.

Russia has the possibility to increase its external borrowing limit this year from the US$3bn already reached by converting its domestic borrowing target to increase its external borrowing allowance according to the Finance Ministry's Debt Department. The government is likely to issue a yuan-denominated bond equivalent to US$1bn in size either later this year or next year with this additional allowance if it gets approval from lawmakers.

Argentine hydrocarbon exploration company Compania General de Combustibles (CGC) has received a US$127mn syndicated loan according to Latin Lawyer.

China's largest electric car manufacturer BYD Co. has received a CNY60bn (US$8.9bn) loan commitment from the China Development Bank to fund monorail projects according to sources speaking to Bloomberg.

Brazil's Congress has approved a bill to limit the government's spending. 366 lawmakers supported the motion. It will now have to face a second reading in Congress before approval by the country's Senate.

S&P Global Ratings noted that Chinese banks will likely need to raise US$1.7tn in capital to cover an increase in bad loans, as rising debt levels lower the credit profiles of China's top 200 companies.

Turkish IP increased 2.1% year-on-year in August, following a 4.9% fall year-on-year in July, according to the Turkish Statistical Institute.

Czech CPI increased by 0.5% year-on-year, slightly down from the 0.6% year-on-year growth posted in August, according to the Czech Statistical Office.

India's IP decreased by 0.7% year-on-year in August, another contraction on top of the 2.5% year-on-year decline in July, according to the Ministry of Statistics and Programme Implementation.

Brazilian development bank BNDES has announced that it will stop financing coal and oil-fired power plants to discourage carbon-intensive energy projects.

Hungarian CPI rose 0.6% year-on-year in September compared to a fall of 0.1% year-on-year in August, according to the Hungarian Central Statistical Office.

Saudi Arabia's Public Investment Fund (PIF) is set to reduce its lending operations on local projects in an attempt to create the world's largest sovereign wealth fund.

Russia and OPEC appear closer to reaching an oil-production cut. Energy and oil ministers from OPEC and non-OPEC nations are set to meet tomorrow to discuss production cuts.

Ghana's Cocoa Board has signed a US$1.8bn pre-export receivables backed trade financing loan. The arranging group included Deutsche Bank, DZ Bank, Ghana International Bank, MUFG, Natixis, Nedbank, Rabobank, Societe Generale and Standard Chartered. This was joined by a syndicate of banks including ABN AMRO, Attijariwafa Bank Europe, Bank of China, Barclays, Credit Agricole, EcoBank Ghana, Fidelity Bank, Intesa Sanpaolo, KfW-IPEX Bank, Mizuho, Rand Merchant Bank, SMBC, Standard Bank and the State Bank of India. The facility pays a margin of 6.75bp over LIBOR.

South Africa's Eskom has signed a US$500mn credit facility with the China Development Bank.

Tunisie Telecom is set to receive a €195.5mn 5-year loan led by Bank ABC and Credit Suisse.

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