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Daily Roundup

YPF looks at reopening 2024s – BNDES holds off on risky African projects – PT Bank BRISyariah plans subordinated sukuk – Pakistan Refinery could hit the syndicated loan market this month – IHS Nigeria issues country’s first dollar bond of 2016

Oct 14, 2016 // 5:06PM

YPF is looking to reopen its existing 2024 dollar-denominated 8.75% notes with an up to US$325mn tap according to Fitch, which rates the planned tap B/RR4.

The National Bank for Economic and Social Development of Brazil (BNDES) has suspended the payment of US$4.7bn for 25 projects in foreign countries including Angola and Mozambique, the state bank said in an announcement. The payments were due to be made mostly to engineering and construction services firms, and the move is part of a broader effort to overhaul the bank's procedures governing how it funds operations involving Brazilian exports of goods. The bank is currently reviewing up to US$13.5bn in payments.

Indonesia's PT Bank BRISyariah plans to issue a subordinated sukuk up to a maximum of IDR1tn, with a maturity of seven years, which will be used to strengthen the bank's capital structure.

Pakistan Refinery is in talks with international banks over a potential syndicated loan, according to a report from Reuters. Proceeds from the loan will be used to expand the company's refining capacity.

Telecoms tower provider IHS Nigeria secured a US$800mn 5-year bond, the first US dollar denominated deal out of Nigeria this year.

Nigeria raised NGN95bn (US$312.50mn) at an auction of local currency bonds this week. The Debt Management Office sold NGN10bn of 2021 paper at 15.29% at Wednesday's auction, compared with 15.14% at the previous auction last month.

The African Development Bank Group (AfDB) has approved a senior loan of ZAR570mn to South Africa's Housing Investment Partners Trust 2 to help the trust fund an affordable housing plan.

The Government of Ghana and the Kuwait Fund for Arab Economic Development have signed a concessional loan agreement of KD7mn (US$24mn). The funds will be put towards the development of new schools.

Mexican state-owned utility Comision Federal de Electricidad (CFE) has sold US$1bn in bonds maturing February 2027, priced at 99.876 to yield 4.766% and a spread of T+300bp. Bank of America Merrill Lynch and Citigroup were leads on the trade. The book reached US$5.5bn.

The Government of Bermuda launched a US$665mn long 10-year bond. Proceeds from the senior unsecured bond, which is being sole led by HSBC, will be used to repay US$200mn, and fund the deficit. The notes priced at 99.986 to yield 3.717%, with a spread of T+195bp.

Latvian energy producer Latvenergo AS is looking to set up its second green bond programme, which will see a combined €100mn issued to support renewable generation and transmission projects in the country.

Bond issuance in Asia is on the rise according to figures recently published by fixed income research house Schildershoven. Issuance in Asia ex. Japan increased to US$6.8bn this week compared to US$2.2bn issued a week earlier.

Former Brazillian president Luiz Inacio Lula da Silva was accused by the country’s prosecutors of corruption activities with BNDES, the state-owned development bank, adding a new dimension to the ongoing corruption scandal implicating Lula and other former government stakeholders.

Venezuela’s state-owned oil company Petroleos de Venezuela (PDVSA) is putting more pressure on the holders of the company’s debt due 2017 to swap over to new notes maturing in 2018 and 2019. The swap deadline was extended once again by the state-owned oil producer.

Chinese CPI rose 1.9% year-on-year in September, up from 1.3% year-on-year in August, according to the National Bureau of Statistics China.

The Peruvian Central Bank kept its key interest rate on hold for the eighth consecutive month at 4.25%.

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