MIDDLE EAST & TURKEY
Banque Misr, Egypt's second largest lender, is in the process of finalising a US$150mn loan with Abu Dhabi Islamic Bank (ADIB), the bank's Chairman Mohamed El-Etreby told a local news agency this week.
The Central Bank of Bahrain successfully sold BD43mn (approx US$114mn) in 3-month sukuk al-salam this week. The notes yield 2.16%, up slightly from 2.05% seen on comparable notes sold at the last auction.
Kuwait is finalising plans to issue up to US$10bn in fresh bonds during the first half of this year, according to bankers with knowledge of the plans. The country joins a growing number of GCC sovereigns looking to raise new debt in a bid to finance widening deficits. Last year the region's sovereigns raised US$33bn in the international capital markets.
Oman's Bank Muscat is said to be seeking a loan refinancing from a range of regional and international banks, Reuters reports. The loan, which is said to range between US$500mn and US$600mn, was raised in 2014.
Oman’s Special Economic Zone Authority in Duqm (Sezad) has signed a US$265mn loan agreement with the Asian Infrastructure Investment Bank (AIIB) to help finance phase 2 of the Duqm Port development. The 25-year loan includes a 5-year grace period.
Turkiye Vakiflar Bankasi plans to raise up to US$650mn in Basel III-compliant Tier 2 notes this week. The notes are expected to carry a tenor of 10 years (callable in five) and are likely to be rated 'BB+(EXP)' by Fitch, the CRA said in a statement.
Turkish President Tayyip Erdogan has called on the country's financial sector to ease the flow of credit or face repercussions in yet another call to boost access to financing in Turkey, where the lira has dropped more than 10% against the US dollar since the beginning of the month. The move comes at a time when the country is more inclined to raise interest rates than at any point over the last few years. It last hiked interest rates in November last year.
The Abu Dhabi Fund for Development (ADFD) and the International Renewable Energy Agency (IRENA) have signed a deal with Niger, the Marshall Islands, Seychelles, and the Solomon Islands for US$44.5mn that will see the countries deploy the funds for rural electrification projects. The funding will be split into loans of between US$5mn and US$15mn for each project, and will carry a 20-year tenor.
A consortium consisting of Eni, Vitol Ghana Upstream and the Ghana National Petroleum Corporation have secured US$1.35bn in ECA-backed loans to help finance the Offshore Cape Three Points (OCTP) gas project, most recently securing a US$400mn from UKEF. The US$7.9bn project is being backed by the International Finance Corporation, Multilateral Investment Guarantee Agency of the World Bank Group, UKEF, as well as commercial banks including HSBC Bank plc, Standard Chartered Bank, Société Générale, ING, Natixis, Bank of China, Singapore Branch, Mizuho Bank, and MUFG.
The Democratic Republic of the Congo (DRC) has secured US$250mn in future flow pre-financing from the African Export-Import Bank (Afreximbank) to support the country's oil field development plans, the bank said in a statement this week.
The DRC's Central Bank has doubled its base interest rate to 14% in an effort to contain inflation, which is currently running into double digits, reaching 11.2% in December, well over the bank’s target of 4.2%.
Zimbabwe's largest mobile telephony company Econet Wireless plans to raise US$130mn from shareholders to pay foreign loans it is struggling to settle due to a severe dollar crunch. Econet said in a statement that to avoid defaulting on external obligations, it had decided to raise money via a rights issue, adding that foreign currency shortages made it difficult for the company and its subsidiaries to repay foreign loans.
President-elect Donald Trump's protectionist stance and promises to curb immigration will have limited impact on the Brazilian economy, the country’s Finance Minister Henrique Meirelles said this week. Speaking to reporters at the World Economic Forum in Davos, Meirelles said the appreciation of the Brazilian real is due to the improving prospects for the economy, which has been in recession for two years.
The Central Bank of Barbados admitted that it is losing more FX than gaining, with the losses putting a strain on the local currency and sparking accusations that government’s economic policies have failed. In his statement of the economic prospects for 2017, the Governor of the Central Bank, Delisle Worrell, said that unless the country acts quickly to stem the capital outflows, the Barbados dollar would be devalued.
RUSSIA, CIS & EUROPE
UK Prime Minister Theresa May has said the UK would not be able to stay in the single European market following the country's exit from the European Union, renewing speculation of a 'hard Brexit' on the horizon. However, May also promised lawmakers would get to vote on any final agreement with the Union.
The European Investment Bank (EIB) has mandated Citi Handlowy, ING Bank, mBank, and TD Securities for a tap of its 2.25 % PLN75bn (US$428.93mn) bond, according to a report from Reuters.
The Russian rouble strengthened on Tuesday, helped by a weaker dollar and end-of-month tax payments. As of Tuesday morning, the Russian currency was 0.8% firmer against the dollar at 59.37 and had also gained 0.3% against the euro, trading at 63.29.
Russian state-owned bank VTB provided a bridge loan to the sum of US$11bn to an entity controlled by Qatar and commodities trader Glencore four days after the Kremlin signed a deal to sell them a stake in state oil company Rosneft for a similar amount, two Russian newspapers reported on Tuesday. The newspapers, quoting company filings in Singapore where the entity, QHG Shares Pte, is registered, both reported that VTB had provided a loan of RUB692bn (US$11.68bn) to the Qatari-Glencore entity between December 15 and December 22 last year. The Russian government has dismissed reports that it used state money to finance the deal. According to statements issued by parties to the deal, Glencore contributed €300mn, Qatar about €2.5bn, and Italian bank Intesa San Paolo put in €5.2bn in credit.
The Serbian Central Bank sold euros on the local interbank market on Monday to prop up the dinar, which remained weak after the bank's decision last week to hold its key rate at 4%. The SCB has so far this year sold a total of €105mn, increasing FX injections as the dinar traded at the rate of 124 to the euro.
Croatia is planning to issue up to €1.5bn (approx US$1.6bn) in international bonds this year, though timing will largely depend on market conditions, the country's Finance Minister Zdravko Maric said this weeks.
The Polish ministry of development is launching a new trade and investment agency aimed at supporting Polish businesses’ expansion abroad, with a focus on Asian and African markets. The Polish Agency for Investment and Trade (PAIH) will operate within the Polish Development Fund (Group PFR), which implements financial instruments aimed at the development of Polish businesses. The agency itself will not offer financial instruments, but help to get the support for international expansion from other financial institutions belonging to PFR.
South Korea's special prosecutor requested a warrant to arrest the head of Samsung Group the country's largest conglomerate, accusing him of paying multi-million dollar bribes to a friend of President Park Geun-Hye. Investigators questioned Samsung Group chief Jay Y. Lee for 22 straight hours last week as a suspect in a corruption scandal, which last month led to parliament impeaching Park. Lee is accused of paying bribes totalling KOW43bn (US$36.42mn) to organizations linked to Choi Soon-Sil.
China has suspended 85 planned coal power plants in a bid to meet a government coal capacity target laid out in its latest plan for social and economic development. The National Energy Administration (NEA) announced the under-construction projects would no longer go ahead as part of measures outlined in its Five-Year Plan, Greenpeace reports. Earlier the NEA said it would invest CHY2.5tn (US$361bn) into renewable power generation by 2020.
The International Monetary Fund upgraded its growth forecast for China’s economy in 2017 to 6.5%, up 0.3% on the back of higher expectations of government stimulus and cheaper access to bank loans.
Taiwanese hardware developer Ennoconn raised US$200mn in fresh 5-year bonds yielding 0% and sold at par. The trade was managed by KGI Securities.
Chinese property developer Times Property sold US$375mn in 3-year bonds paying a coupon of 6.25%. Citigroup, Credit Suisse, Deutsche Bank, Guotai Junan Securities, Haitong International securities, ICBC, JP Morgan, and UBS managed the trade.
China's Yanlord Land sold US$450mn in 5-year notes yielding 5.875%. DBS Bank, HSBC, Standard Chartered Bank, and United Overseas Bank managed the sale.
The Development Bank of Singapore issued €750mn in notes maturing in 2024 and with a yield of 0.375%. DBS Bank, Deutsche Bank, JP Morgan, Societe Generale, and UniCredit were bookrunners on the deal.
Guotai Junan Securities Co., one of China's top green bond underwriters, has said the government may accelerate plans to issue green bonds in 2017 in a bid to combat climate change, according to a note from Bloomberg. The move comes at a time when the PBOC is said to be considering a range of incentives to spur further sustainable finance investment, including extending tax breaks to green investors. Chinese organisations make up the majority of green bond issuance globally, with over US$86bn in labelled green bonds issued from a wide range of entities in the country throughout 2016.
China's State Council announced a raft of new measures designed to ease foreign investors' access to Chinese markets, including lowering restrictions on foreign investment in banking, securities, investment management, futures, insurance, credit ratings, it said on its website this week. Foreign investment firms will also be allowed to list on the Shanghai and Shenzhen exchanges, and the New Third Board, the country's biggest over-the-counter (OTC) equity exchange.
The Bank of Hangzhou plans to raise up to CNY10bn (US$1.45bn) in a 10-year private placement this week, according to disclosure notice.
Indian insurer HDFC Ergo raised Rs350 crore in subordinated debt this week. The 10-year non-convertible debentures were priced at 7.6% and will help the company fund the acquisition of rival L&T General Insurance.
India's Central Bank on Monday relaxed cash withdrawal limits from cash machines and current accounts with immediate effect. The Reserve Bank of India has allowed individuals to withdraw up to 10,000 rupees (US$146.84) per debit card per day from ATMs, higher than the 4,500 rupees currently.