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The Daily Roundup

ACWA Power looks to issue US$1bn – IDB prints US$1.25bn sukuk – Kenya petitions banks for bond sale – Nigeria’s UBA secures loan from AfDB – Mexico’s CB governor to step down – Suzano issues Brazil’s first green CRA – RBI revises issuance ceiling

Dec 2, 2016 // 6:17PM

MIDDLE EAST & TURKEY

Saudi Arabia's ACWA Power is looking to issue a fixed-rate US$1bn bond that is expected to mature in 2039, according to Reuters. Pricing is expected to come in at MS+330bp. JLMs are Citigroup, CCB Singapore, Mizuho and Standard Chartered.

The Islamic Development Bank (IDB) printed an upsized US$1.25bn sukuk yielding 2.263%, inside IPTs.

AFRICA

The Djiboutian government is in talks with the Saudi-based Islamic Development Bank as the country looks to create a framework for issuing sukuk, according to Reuters.

Fitch downgraded Mozambique's long-term foreign-currency debt to Restricted Default (RD) on this week, five months ahead of the next scheduled review. The downgrade follows Mozambique's failure to make a capital and coupon payment due in May earlier this year on the US$535mn loan to state-owned enterprise Mozambique Asset Management (MAM).

Kenya has reportedly petitioned banks to help advise it on a debt sale that could see the sovereign raise up to US$1.5bn to boost its foreign cash reserves, according to a note from Bloomberg.

Angola and China signedUS$4.5bn financing agreement for the construction of the Caculo Cabaça hydroelectric dam in the Middle Kwanza basin. The project is expected to allow electricity from the Kwanza River to be exported to countries such as Namibia or South Africa.

Nigeria's United Bank for Africa (UBA) has secured a US$150mn loan from the African Development Bank (AfDB) to support infrastructure projects and SMEs in the country.

AMERICAS

US DFI Overseas Private Investment Corporation (OPIC) has announced US$3.7bn in financing and insurance commitments during FY2016 to support economic development in emerging markets.

The Inter-American Development Bank (IDB) has approved a US$100mn loan to the Chilean government to finance a sustainable energy programme in the country.

Mexican financial and retail corporation Grupo Elektra has announced it will call half of its US dollar-denominated bonds in efforts to reduce its FX exposure.

The governor of Mexico’s Central Bank, Agustín Carstens, said Thursday that he would leave his position next July. A replacement has yet to be named.

Argentine President Mauricio Macri has signed into law legislation that establishes public-private partnerships (PPPs) for public works projects. The bill, which was approved last month by the Argentine Senate, seeks to stimulate investment in infrastructure, housing, services and other areas. It is the latest step by Macri to stimulate investment in infrastructure in Argentina as he works to jump-start the economy.

The Province of Buenos Aires is reportedly prepping another local currency bond, according to Reuters.

Brazilian lawmakers are trying to approve a bill that will influence prosecutors by making it easier to investigate them for crimes such as engaging in political activities, or publicly commenting on pending trials. The Lava Jato team announced that it will resign if the Congress approves the bill.

Brazil pulp and paper giant Suzano has printed the country's first real-denominated green CRA, a debenture backed by receivables from agriculture products. The 8-year BRL1bn (US$291mn) agriculture debenture was priced at 96% of the CDI rate, the lowest rate ever obtained in Brazil from the issue of similar CRAs.

Engineering firm Odebrecht SA signed a roughly BRL6.7bn (US$1.94bn) leniency deal with the Brazilian prosecutors in a deal that will allow the firm to resume bidding for government projects.

ASIA

India's 10-year government bond yields approached the 6% mark for the first time since 2009 on rising speculation that the Reserve Bank of India (RBI) will lower its repo rate by 25bp to 6%.

Reserve Bank of India (RBI) on Friday said that it has revised the ceiling on issuance of securities under the market stabilization scheme (MSS) to Rs6 trillion (US$87bn), from the previous limit of Rs30,000 crore (US$4.5bn) for financial year 2016-17. Separately, the Central Bank announced the auction of the 28 days the government’s cash management bills for a notified amount of Rs20,000 crore (US$2.93bn) on Friday, using “Multiple Price Auction” method.

China’s regulator is planning to implement regulations that will help the country’s small unlisted companies to sell shares to qualified foreign investors.

Singapore's Central Bank imposed penalties of S$5.2mn and S$2.4mn on the local units of Standard Chartered and Coutts, respectively, for money laundering breaches related to Malaysia's scandal-tainted 1MDB fund.

RUSSIA, CIS & EASTERN EUROPE

Fitch has kept a stable outlook on Central and Eastern European banks after a critical ratings review.

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