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The Daily Roundup

PdVSA delays US$404mn bond payment – Brazil lowers growth forecast – China to reveal SOEs to be restructured by year’s end – SBM Holdings to acquire Fidelity Commercial Bank Ltd – Ratings outlook for Ukrainian banks turns negative – Multiplan Empreendimentos Imobiliários S.A preps BRL300mn debenture

Nov 22, 2016 // 5:55PM

Venezuela's PdVSA is delaying US$404mn in bond payments according to a note by JP Morgan analysts. The company is using the 30-day grace period on its 2021, 2024 and 2035 bonds to put off repayments. The analysts added that they do not expect the company to default.

Brazil's government lowered its forecast for economic growth in 2017 to 1% from 1.6%, as the country struggles to leave behind its worst recession in the last 80 years. The government also changed its forecast for this year's economic contraction to 3.5% from 3%.

China may name the first state-owned enterprises (SOE) to be restructured under a mixed-ownership system by the end of 2016, China Securities Journal reported earlier this week. The move is a key part of China's reform efforts, and long desired by fixed income investors targeting the region's credits.

SBM Holdings Ltd., Mauritius’s second-biggest lender, announced it will acquire Kenya's Fidelity Commercial Bank Ltd. as it looks to expand into East Africa. The bank will purchase FCB’s entire share capital for KSh100 and inject additional equity of KSh1.46bn (US$14.3mn).

Poland's PPI rose 0.6% year-on-year in October, up from a 0.2% increase in September according to the Central Statistical Office of Poland (GUS). According to Trading Economics, the rise was above market expectations of a 0.35% increase.

The National Bank of Hungary, the country's Central Bank, held its 3-month MNB deposit rate at 0.9%. This was in line with market expectations according to Trading Economics.

Fitch Ratings has upgraded the ratings of seven Ukrainian banks from CCC to B-, following its recent upgrade of the sovereign to the same level. The upgraded banks include the State Export-Import Bank of Ukraine (Ukreximbank), State Savings Bank of Ukraine (Oschadbank), Alfa-Bank, Ukrsotsbank, ProCredit Bank, Credit Agricole Bank and Pravex

El Salvador approved a US$550mn sovereign bond issuance, the proceeds of which will be used to reduce its outstanding short-term local debt load. Earlier this month the country’s government sought approval for up to US$1.2bn.

Ghana's Central Bank cut its policy rate by 50bp to 25.5%, saying the downside risks to economic growth now outweighed the risk of high inflation. It is the first major policy shift by the Bank of Ghana (BOG) since the last rate hike in November 2015, and the first rate cut since July 2011.

Indian microcredit and non-bank lenders, which often borrow fom banks themselves, are struggling in the wake of the country's currency ban, according to data compiled by Bloomberg. The shift has led the RBI to give microcredit and non-bank lenders a 60-day extension before they have to count a small loan as delinquent.

The Abu Dhabi Fund for Development (ADFD) signed a loan agreement worth AED147mn with the Office Nationale des Chemins de Fer du Maroc (ONCFM), Morocco's national railway operator, to finance the construction of a high-speed train between the cities of Tangier and Kenitra.

Brazillian mall developer Multiplan Empreendimentos Imobiliários S.A. is prepping a BRL300mn privately placed infrastructure debenture, or CRI, minutes from a recent board meeting confirm. Banco Bradesco BBI S.A., BB – Banco de Investimento S.A., Banco Itaú BBA S.A. are managing the sale, XP Investimentos Corretora de Câmbio and Títulos e Valores Mobiliários S.A are acting as underwriters.

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