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The Daily Roundup

EBRD to lend Turkey US$134.75mn for energy sector reform – Gazprom Neft joint field exploration with Iran’s state oil company – Poland launches US$750mn Green bond – SWIFT warns banks of increased cyber-attack threat after Bangladesh hack – Colombia’s Technoglass preps US$225mn dollar bond – De Beers struggling with falling sales after India cash demonetization

Dec 13, 2016 // 5:15PM

MIDDLE EAST & TURKEY

The European Bank for Reconstruction and Development (EBRD) is set to lend US$134.75mn to electricity companies in Turkey, supporting the country’s energy sector reform program. The loan, allocated to IC Ictas Elektrik (Icel) and its subsidiaries, is part of a US$700mn dual-currency financing package by Garanti Bank, Isbank, Vakifbank, TSKB and other FIs.

AFRICA

Botswana's Central Bank left its benchmark lending rate at 5.5% on Tuesday, stating that the outlook for price stability remained positive, with inflation on course to stay within the Bank's medium-term objective range of 3-6%.

The IMF is recommending that Zambia should delay its planned re-financing of US$2.8bn worth of Eurobonds and instead wait for better financing conditions. The Eurobonds, issued from 2012 to 2015, were set to be refinanced with longer-dated bonds at a lower cost, Finance Minister Felix Mutati announced last week.

AMERICAS

Paraguay is eyeing a return to the international bond markets with a potential issue of US$500mn to early next year, with proceeds going to fund infrastructure projects, according to reports in the local media. Earlier this year the Latin American country awarded a US$520mn transport infrastructure PPP project to Spain's Sacyr, Portugal's Mota-Engil and local company Ocho.

Colombian glass company Tecnoglass has wrapped up investor meetings ahead of a US$225mn debut dollar-denominated bond with a tenor of between five and seven years. The bond, expected to be rated Ba3/BB- by Moody's and Fitch, will have Bank of America Merrill Lynch and Morgan Stanley as joint bookrunners.

ASIA

Cyber-attacks are becoming a major threat to the global bank transfer system, with more sophisticated hacking methods continuing to exploit vulnerabilities in SWIFT interbank messaging services, the global financial security provider said in a letter distributed to major banks and quoted by Reuters. The warning follows the latest heist by hackers that result in theft of US$81mn from the Bangladesh Central Bank.

Taiwan's finance ministry will suspend its three-year government bond program next year as fewer bonds mature in 2017, after meeting a group of traders to assess demand for the notes. Taiwan issued TWD563.5bn (US$17.78bn) worth of government bonds this year, the lowest level in years.

De Beers, the world’s biggest diamond producer, is struggling with low demand cause by India’s crackdown on black money. After the government of India, one of De Beer’s fastest growing markets, demonetized the existing 500-rupee and 1,000-rupee bank note, the South African company was forced to ease restrictions on buyers in the country, as demand plummeted.

RUSSIA, CIS & EUROPE

Russia’s Rosbank set placement date for its BO-11 series RUB5bn (US$81.77mn) bond, to be issued December 20.

Poland launched a US$750mn five-year Green bond at 48bp over mid-swaps, after initially marketing the notes at 60bp area over mid-swaps. The orderbook reached US$1.4bn for the bond for which HSBC is acting as structuring adviser, as well as a bookrunner along with JP Morgan and PKO Bank Polski.

Gazprom Neft is set to explore the potential of two of Iran’s oil fields, after signing an agreement with the country’s state oil company. Gazprom joins two other Russia oil giants, Lukoil PJSC and Zarubrezhneft OAO in Russia, in entering the Iranian market, which until recently has been under international sanctions. 

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