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The Daily Roundup

Turkey 5-year CDSs up by 5bp, lira at record low – Russia’s LukOil issues US$1bn 10-year Eurobond – IMF ups Indonesia’s growth forecast to 5.3% for 2017 – Brazil’s PDG Realty readies to file for bankruptcy protection – Romania and Czech Republic keep key interest rates unchanged

Nov 4, 2016 // 4:31PM

Turkish credit has risen to highest in over a month as the crackdown on opposition leaders and journalists continues. Five-year credit default swaps (CDS) rose 5 basis points to 269bps from Thursday close of 264bps, according to data provider Markit. The Turkish lira dropped as much as 1.3% to 3.1504 per US dollar.

Russia’s oil giant LukOil has completed the issue of US$1bn of Eurobonds and will use the net proceeds for general corporate purposes, including the refinancing of certain existing indebtedness. The offering consists of 10-year notes with a coupon of 4.750% per annum. 

The IMF revised down the world economic growth forecast for this and next year but confirmed strong growth forecasts for the Asean nations. Indonesia is expected to expand at 5.3% next year, higher than the regional average, continuing a long period of fast and stable growth.

Brazil’s PDG Realty Empreendimentos e Participações SA is considering filing for bankruptcy protection, if it is unable to receive funding from banks to clear some of its debt.

Mexican energy infrastructure firm IEnova, a unit of U.S.-based Sempra Energy, said on Thursday it had increased a credit line with a group of banks from US$600mn to US$1.17bn, which will go towards working capital, investments and general corporate projects.

Russia’s Domodedovo Airport has issued a US$350mn 5-year 5.875% Eurobond with ING Bank N.V., Societe Generale Corporate & Investment Banking and UBS Limited as bookrunners. The -/BB+/BB+ rated note attracted US$900mn worth of orders from Russian, Swiss, British, US and Asia–Pacific investors.

The Czech Republic’s Central Bank held its key interest rate steady on Thursday, and reaffirmed its currency ceiling, as expected. It left the benchmark two-week repo rate unchanged at 0.05%. The discount rate was held steady at 0.05% and the lombard rate at 0.25%.

Romania's Central Bank kept its benchmark interest rate unchanged at a record low 1.75% as expected on Friday, balancing negative inflation with fiscal loosening ahead of December’s general election.

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