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The Daily Roundup

ADIB completes sukuk repayment – IDB sets IPTs for 5-year sukuk – Cencosud raises US$271mn in local market – Kenya to release green bond policy with 2017/18 budget – Banco Central do Brasil cuts SELIC rate for second time – RBI eases restrictions on banks – Sberbank sets up US$4bn bond programme

Dec 1, 2016 // 2:12PM

MIDDLE EAST & TURKEY

Abu Dhabi Islamic Bank (ADIB) has completed the repayment of a US$500mn (AED1.8bn) sukuk issued in 2011.

The Islamic Development Bank (IDB) has set the final spread on its planned 5-year sukuk at MS+45bp. The orderbook for the sale stood at US$1.2bn, according to Reuters.

GE Trade Bank of Iraq and Standard Chartered Bank have signed a financing memorandum of understanding (MoU) to increase the development of power and infrastructure projects in the country, according to statements from the banks.

Turkey’s AkBank has received Board approval to sell up toUS$4bn in international debt.

The European Bank for Reconstruction and Development (EBRD) is providing its backing to a €288mn bond to finance a hospital in Elazig, according to the Bank.

AFRICA

Nigeria's Vice President Yemi Osinbajo said the country will look to conclude the sale of a US$1bn bond by the end of Q1 2017. He added that the government will also make Nigeria's FX market more flexible by that time.

The Bank of Ghana(BoG) will auction the first of three dollar auctions for this year to commercial banks in the country as part of moves to stabilize the cedi. The Bank expects to sell up to US$60mn.

The Kenyan government, working with the country's Capital Markets Authority, is expected to set out its policy on green bonds as part of the government's 2017-2018 budget. The government is currently considering how to apply the same incentives and privileges associated with infrastructure bonds.

Angola's Central Bank, The National Bank of Angola, kept its benchmark lending rate unchanged at 16% this week, citing a slowdown in headline inflation as a key reason for the decision.

AMERICAS

US trade policies under Trump could see a selloff in Mexican peso-denominated bonds, which could push yields back to levels seen during the 2008 financial crisis, according to a client note from Nomura analysts.

Chile, Colombia, Mexico and Peru are looking to set up a catastrophe bond, or CAT bond, according to media reports. CAT bonds are high-yield insurance-linked debt instruments that are meant to raise funds during a natural disaster.

Chile's Cencosud raised an equivalent to US$271mn in a local bond market issuance.

Banco Central do Brasil lowered the SELIC rate by 25bp to 13.75% on November 30. The move follows a quarter-point reduction in October, the first cut in four years.

ASIA

India's manufacturing PMI fell to 52.3 in November, down from 54.4 in October according to Markit Economics.

The Reserve Bank of India will now allow banks to use all their cash to meet the its recently introduced cash reserve ratio requirements, a move that could provide relief to the country's banks - which were flooded with deposits following the demonetisation earlier in November.

China will spend CHY700bn (US$102bn) on wind power during the 2016-20 period, top energy authorities said on Wednesday. Wind power's share of the overall electricity mix should be increased to 6% by 2020 from 3.3% in 2015, according to a National Energy Administration plan. 

China Caixin manufacturing PMI fell to 50.9 in November, down from 51.2 in October, according to Markit Economics. Market expectations were for a fall to 50.8 in November, according to Trading Economics.

Thailand’s CPI rose by 0.6% year-on-year in November, up from a 0.34% year-on-year increase in October. The market expectation was for a 0.66% rise according to Trading Economics.

Indonesia’s share of global sukuk issuance more than doubled to 24% in the first half of 2016 from 10.6% in 1H 2015, according to RAM Ratings, driven mainly by the country's aim to finance infrastructure projects and increase development.

South Korean CPI rose 1.3% year-on-year in November, at the same pace as in October. Market expectations were for a 1.5% increase according to Trading Economics.

RUSSIA, CIS & EASTERN EUROPE

Russia’s Sberbank is looking to issue an as-of-yet unknown volume of structured bonds tied to active currency pair, as part of a RUB250bn (US$3.9bn) bond programme. The first issuance will come in December, and more will follow in 2017, with specific sizes “dependent on market conditions”, the bank’s press-release indicated.

Russia's Finance Ministry sold RUB19.9bn (US$310mn) of OFZ treasury bonds at two auctions on Wednesday, out of the RUB30bn on offer.

Russia's manufacturing PMI rose from 52.4 in October to 53.6 in November, the fourth consecutive month of expansion.

Polish Finance Minister Mateusz Morawiecki said the economy could grow by 2.5-3% this year, a significant drop from a previous forecast of 3.4%. The zloty fell 0.2% to 4.45 against the euro on the new growth expectations.

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