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Daily Roundup

Embraer to pay US$205mn in corruption settlement – NREC plans benchmark-sized sukuk – Gunal to receive US$217mn syndicated loan – Samarco misses bond repayment – Ogun State to get second largest refinery in SSA – Grupo GICSA launches MXN3bn bond

Oct 25, 2016 // 5:21PM

Brazil’s Embraer has agreed to pay US$205mn as part of a settlement with US and Brazilian authorities in a corruption scandal implicating high ranking officials at the company paying millions in bribes to foreign governments to secure contracts.

The CEO of Kuwait's National Real Estate Company (NREC) has said that the company plans to issue a 7-year US$500mn sukuk in Q1 2017 to fund new projects and refinance existing debt. The company is also raising KWD2.4bn (US$654mn) through a 7-year loan with a club of banks for the development of a mall in Abu Dhabi according to Reuters.

Turkish contractor Gunal is set to receive an AED800mn (US$217.8mn) 6-year syndicated loan led by Abu Dhabi Commercial Bank to build a hotel and apartment complex in Dubai, according to Reuters.

Venezuela's PdVSA has announced that it has swapped US$2.798bn in debt maturing in 2017 for US$3.4bn worth of new bonds maturing in 2020. The company aimed to swap US$5.3bn of the US$7.1bn maturing next year, and only 39.4% of bondholders agreed to the swap - less than the 50% the company was looking for.

Brazilian miner Samarco has missed another US$20mn bond payment on a US$700mn 2023 according to the company. This is the second such missed payment in a month, earlier missing a US$13.5mn repayment of a US$500mn 2024 bond.

Mexican real estate company Grupo GICSA has issued a 7-year MXN3bn bond in the domestic market at 6.95% according to a press release from the company.

Wema Bank, Petrolex Oil & Gas, Hyundai and Ajayi Legal Partners have signed a deal with Nigeria's Ogun State to build the second largest refinery in Sub-Saharan Africa and the largest petroleum depot in Nigeria.

The Government of Nigeria has requested the African Development Bank (AfDB) fast-track the disbursement of a US$1bn budget support facility it previously agreed with the country, a loan that is expected to cover the 35% shortfall in the country's finances.

The Government of Malaysia is looking to partner with key financial institutions in Qatar over the development of an Islamic finance corridor between the two nations, Malaysian officials said this week.

Kuwait is reportedly still looking to issue up to KWD3bn (US$9.9bn) on the international bond market before the end of the year, according to a finance ministry official quoted by Al Arabiya TV. The government has been looking for a window amidst a crowded GCC credit market that has seen nearly each of the region's sovereigns issue on international markets this year.

Egypt's Finance Minister Amr El Garhy has said the government plans to issue up to US$2bn in international bonds, less than previously announced, with roadshows expected to commence in November this year. The country is currently in the process of trying to secure a much needed IMF funding package, valued at over US$12bn.

Argentina's Compania General de Combustibles has begun roadshowing a potential US dollar bond this week. Bank of America Merrill Lynch, Citigroup and Itau are managing the trade. Earlier this month the company received a US$127mn syndicated loan from a number of commercial lenders.

Banco Macro will look to issue up to US$400mn in Basel III Tier 2 10NC5 securities following roadshows this week. The Argentine lender has mandated Goldman Sachs and UBS as joint bookrunners, and Macro Securities as local placement agent.

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