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The Daily Roundup

South Africa delays nuclear projects to save credit rating – ADCB inks US$600mn facility – BoCom issues whopping US$4.4bn green bond – World Bank lowers global growth outlook by nearly half – Nigeria CB leaves key rate unchanged – KenGen soaks up fresh funding from Belgium – Oman eases loan restructuring requirements

Nov 23, 2016 // 5:44PM

South Africa has also delayed plans to build two nuclear power plants in a bid to address spending concerns as it approaches a critical credit rating review that could see rating agencies downgrade the country's credit to 'junk' status.

Abu Dhabi Commercial Bank (ADCB) has closed a US$600mn three-year syndicated loan led by Wells Fargo. The loan, which was upsized from US$500mn, pays LIBOR+95bp, and was almost entirely syndicated to Asian lenders.

China's Bank of Communications (BoCom) has successfully issued RMB30bn (US$4.4bn) in green bonds in the country's inter-bank bond market. The bank issued RMB10bn in 3-year notes and RMB20bn in 5-year notes.

The World Bank has lowered its 2016 GDP growth outlook for Turkey, which is now at 3.1%, down from 3.5%.

OPEC will debate an oil output cut of 4.0-4.5% for all of its members excluding Libya and Nigeria next week, which represents a drop of about 1.2mn barrels per day. According to media reports, the deal could be undermined by Iraq, Iran and Indonesia, which so far have been sceptical about terms proposed by the cartel.

Taiwan's industrial production rose 3.7% year-on-year in October, down from a 5.02% year-on-year increase the previous month according to the Ministry of Economic Affairs, Taiwan. This is lower than market expectations; they were anticipating a 5.5% increase for October.

Singapore's CPI fell by 0.1% year-on-year in October compared to a 0.2% fall year-on-year in September according to Statistics Singapore. Markets were expecting a 0.2% fall.

Bank Negara Malaysia, the country's central bank, kept its overnight policy rate unchanged at 3%, in line with market expectations.

South African CPI increased 6.4% year-on-year in October, up from a 6.1% year-on-year rise in September, according to Statistics South Africa. Markets were expecting a 6.3% increase.

Nigeria's Central Bank left its benchmark Monetary Policy Rate (MPR) at 14%, citing the importance of price stability and the limitations of monetary policy in influencing economic output and employment under conditions of stagflation. So far this year, the CBN raised the benchmark by 300bp to combat inflation, which reached 18.3% in October.

Kenya Electricity Generating Company (KenGen) will receive financing from Belgian government to expand the Ngong Wind Power Project, a 30-turbine site that will see the addition of five new turbines added next year.

Oman’s Central Bank has relaxed specific provisions for restructured loans in a move to ease the flow of credit. The minimum threshold for loans requiring restructuring, which was earlier set at 15% for 2016, has been spread over a three-year period – at 5% for 2016, 10% for 2017 and 15% for 2018.

Saudi Arabia’s ACWA Power secured US$54mn worth of loans for a 60.3-MW solar photovoltaic (PV) project in Jordan, split between a US$27mn A loan with the European Bank for Reconstruction and Development (EBRD) and a B loan of the same amount from the Netherlands Development Finance Company (FMO). The project has a 20-year power purchase agreement (PPA).

The Philippines has released new details about the country's debt strategy. The country plans to make its international capital markets debut with a US$500mn issuance in either January or February next year, depending on market conditions, according to the country's National Treasurer Roberto Tan.

Brazil saw foreign direct investment of US$8.4bn according to Banco Central do Brasil, which also reported that the country's current account deficit – US$3.34bn in October. The country's IPCA inflation increased by 7.64% year-on-year to mid-November, down from an 8.27% year-on-year increase in mid-October.

The International Finance Corporation (IFC) has extended a credit line of about US$50mn to Argentina’s Banco Galicia to support energy efficiency projects and agribusinesses in Argentina. The funding includes US$25mn raised by abobank and Banco Itau BBA.

Argentina posted a primary fiscal deficit of ARS63bn (US$4.08bn) in October, up from ARS38.9bn in September, the Finance Ministry said on Tuesday.

Hungary's Central Bank left its benchmark base rate at 0.90%, but lowered its overnight lending rate by another 15bp. The bank also added that it is "ready to ease monetary conditions further using unconventional, targeted instruments."

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April / June 2020

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