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The Daily Roundup

Etihad Airways sells US$1.5bn sukuk – Venezuela mulls suing JP Morgan over bond delay claims – Rosneft authorises RUB1.071tn (US$16.55bn) bond programme – CBRT hikes interest rates for first time since 2014 – Odebrecht agrees to US$2.1bn fine over corruption charges – India eases restrictions on foreign investment in corporate securities

Nov 24, 2016 // 6:07PM

Abu Dhabi-based airline Etihad Airways sold a US$1.5bn sukuk paying a 3.86% profit rate and priced at MS+220bp. HSBC, JP Morgan and National Bank of Abu Dhabi (NBAD) helped arrange the deal, while Abu Dhabi Islamic Bank (ADIB), Dubai Islamic Bank (DIB) and First Gulf Bank (FGB) acted as bookrunners.

Venezuela is reportedly considering taking legal action against JP Morgan after the bank accused the South American country’s state oil corporation of missing US$404mn in bond payments. President Nicolas Maduro insists the country made payments on its 2021s, 2024s and 2026s on time.

Russia oil giant Rosneft’s executive board has given a preliminary approval to a 10-year bond programme worth RUB1.071tn (US$16.55bn). The issuance will be used to refinance the company’s existing debt and fund Rosneft’s ventures abroad. Rosneft’s last sizable issuance in 2014 caused a steep fall in the rouble. Russia’s Central Bank did not comment on the latest bond programme, Reuters reports.

The Central Bank of the Republic of Turkey (CBRT) raised its benchmark one week repo rate by 50bp to 8% today, as well as hiking its overnight lending rate by 25bp to 8.5%. The Central Bank held its borrowing rate at 7.25%. This is the Bank's first rate hike since January 2014.

Gazprom issued CHF500.0m maturing in 2021 with a 2.75% coupon and priced at par. Deutsche Bank, Gazprombank, UBS, and VTB Capital were bookrunners on the deal.

Russian Highways has lowered initial price thoughts for RUB10bn in 4-year exchange bonds to 10.25% from 10.3%, according to bankers that worked on the deal. VTB Capital is arranging the sale.

Uranium One Investments Inc. in Kazakhstan has plans to redeem all outstanding Eurobonds by December subject to receiving loans of US$165mn or more from parent companies.

Latin America's largest engineering company Odebrecht SA has agreed to plea bargains under a leniency deal that would see the company pay BRL7bn (US$2.1bn) in fines for the company's role in the 'lava jato' (car wash) corruption scandal in Brazil.

Brazilian real estate and construction company Even Construtora is set to issue BRL200mn in debentures, according to Reuters.

Metals and mining company Vedanta has announced that it plans to issue non-convertible debentures on a private placement basis.

Mexican GDP has increased 2% year-on-year. Government expectations for next year are at 2/3%.

Saudi Arabia will likely cut its 2016 budget deficit to the 13% forecast by the IMF earlier this year, the organisation said, as the government continues to clear its backlog of dues owed to contractors and civil servants.

Egypt could raise as much as US$6bn through the sale of Eurobonds in 2017, according to the country's Finance Minister Amr El-Garhy. He said the government would assess issuing windows after market volatility following the US election result subsides.

India's Central Bank has intervened to slow the rupees decline as the currency hit record lows this morning - 68.83 to the US dollar. The Bank sold over US$500mn in bonds in an attempt to shore up demand for the currency.

In a move aimed at deepening the country's credit market, India's capital markets regulator Sebi said it will allow foreign portfolio investors to invest in unlisted corporate bonds and securitised debt instruments with a ceiling of Rs 35,000 crore. Currently, foreign investment in unlisted debt securities is permitted limited to companies in the infrastructure sector.

Chennai Petroleum Corp, a division of Indian Oil Corp partially owned by Iran's Naftiran Intertrade Co Ltd, plans to invest US$5.5bn to raise the capacity of its smallest refinery co-owned by Iran to 300,000 barrels per day, its chairman said. The move could see the company raise fresh capital through the issuance of bonds.

The Central Bank of the UAE has signed a memorandum of understanding (MoU) with the Bank of Algeria that will see the two Central Banks support the financial and banking sectors in their respective jurisdictions.

The South African Reserve Bank left its repo rate unchanged at 7% today.

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