The Daily Roundup

LatAm bond sales to halve next year to US$60bn – Russia names new Minister of Economy – Bahrain in fresh bond talks – Egypt to ramp up borrowing plans, borrow between US$2.5bn and US$3bn – Petrobras to issue before Trump sworn in – Kuwait solicits banks for bond proposals

Nov 30, 2016 // 5:53PM

Latin American and Caribbean bond sales for 2017 are expected to halve to around US$60 or US$70bn according to estimates by some underwriters in the region following Trump's election, confidence in EMs and the success of previous refinancing endeavours, Reuters reported.

Russia has named Maxim Oreshkin, a deputy finance minister, as the new economy minister following the arrest of the incumbent Alexei Ulyukayev earlier this month on allegations of corruption. In the meeting announcing the appointment Russia’s president called Oreshkin, who in the past worked for Credit Agricole and VTB Capital, a “smart, mature and experienced professional.”

The Kingdom of Bahrain is in talks with lenders over a benchmark-sized minimum US$500mn sukuk, which is expected to be issued in early Q1 2017, according to Reuters.

The Egyptian Finance Minister has said that the country is looking to issue between US$2.5bn and US$3bn in US dollar-denominated Eurobonds in January 2017 during a recent press conference. Finance Minister Amr Garhi also noted that the country could issue a similar-sized bond again in the second half of 2017, bringing the total amount issued in 2017 to around US$6bn.

Brazilian state-owned oil giant Petrobras is looking to issue between US$4bn and US$6bn in long-term bonds before the official election of Donald Trump, according to sources with knowledge of the matter speaking to Reuters.

The Brazilian Senate has voted to limit public spending in real terms for up to 20 years. The bill, which has already been approved by Congress, will be put to a second round of voting in the Senate later in December.

The Inter-American Development Bank (IDB) is working with Uruguay to invest up to US$600mn into the redevelopment of the country's road network. The finance package includes a US$300mn credit line for investment projects will boost agricultural production through rural road modernisation, and another US$300mn line of credit for projects that will focus on enhancing the fiscal management and investment capabilities of the country’s 18 inland departments.

Brazilian steel producer Usinas Siderúrgicas de Minas Gerais S.A. said it will have to make an amendment to covenants relating to its bonds due in 2018, according to a note from the company's Board to the Luxembourg Stock Exchange, as it looks to continue restructuring its debt.

Dutch judicial authorities could compel bankruptcy proceedings for Oi’s two Netherlands-based units, which hold most of the company's bond debt, as the Brazilian telecoms firm continues its bankruptcy negotiations.

Armenian lender Ameriabank has signed a US$20mn credit facility with French AFD subsidiary, Proparco. The proceeds of the facility will be used to fund projects in energy efficiency, renewable energy, agribusiness, food processing, education and healthcare across Armenia.

Russia-based B&N Bank has had its credit rating upwardly revised by S&P Global Ratings from B- to B. The outlook on the rating is stable.

The State of Kuwait has sent requests for proposals for a potential debut international bond to a number of banks, according to Reuters. The sovereign is expected to issue up to US$9bn in international bonds between now and Q1 2017 to help plug its growing deficit.

The Commercial Bank of Qatar has revealed a new five-year plan with the aim of stemming losses from bad loans and tightening deposits. Cutting exposure to the property market and lending more to the public sector are two of the ways the bank hopes to drive a turnaround.

Saudi Arabia's government has suspended its monthly issue of domestic bonds for November, the second month in a row that it has cancelled the debt sale, citing satisfactory banking sector liquidity. The government has regularly offered US$5.3bn to banks every month. 

South Korean industrial production contracted 1.6% year-on-year in October, slightly less than a 1.7% year-on-year contraction in September. The markets expected a 2% contraction according to Trading Economics.

The Korea Development Bank (KDB) has signed a memorandum of understanding with Sarana Multi Infrastruktur (SMI), its Indonesian counterpart, to open a local operational office named “Korea Desk” in Jakarta. The two development banks plan to pour up to US$3bn into infrastructure projects in Southeast Asia.

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