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The Daily Roundup

Citigroup gets bond settlement agent licence in China - Indonesian Bukit Makmur Mandiri Utama sold US$350mn bond - Russia's Kamaz approves RUB30bn bond programme - Brazil's BNDES and World Bank to raise US$500mn for infrastructure financing - Nigeria secures US$7.5bn syndicated loan from China for railway development - EQUATE Petrochemicals ready to price US$750mn sukuk

Feb 7, 2017 // 6:32PM

MIDDLE EAST & TURKEY

Fresh data from the Qatar Central Bank show total credit facilities surged 12% to QAR839bn from QAR748bn a year ago, driven largely by fresh lending in the real estate sector. A liquidity squeeze in the country has, however, caused developers to rethink their plans as credit access tightens.

Adani Ports and Special Economic Zone Limited will soon pull the trigger on a US$500mn senior unsecured bond issuance. The notes due 2022, which have been in the works since early January, will carry a coupon of 3.95%.

Kuwaiti petrochemicals form EQUATE Petrochemicals is looking to price a US$750mn sukuk next week, according to multiple reports, with IPTs said to be in the range of LIBOR+180bp. The sukuk is part of a wider US$2bn programme introduced in 2016.

AFRICA

Chestnut Uganda Limited has secured a US$50mn loan from Standard Bank and STANLIB to construct a 14,000 square meter mall to be situated just outside of Kampala.

Moody's Investors Service says that subdued economic growth, evolving regulation and significant asset risk pressure will maintain pressure on Tunisian banks' performance. In November 2016, Moody's forecasted GDP to remain subdued at 2.1% t in 2017, from 1.4% in 2016, as 2015 terrorist attacks depressed private investor and consumer confidence, and high unemployment weigh on the economy.

The Nigerian government has confirmed is secured a US$7.5bn loan from a syndicate of Chinese lenders to finance the development of the railway from Lagos to Kano.

Nigeria's economic recession, its first in 25 years, "will soon be history", the vice president said on Tuesday, as the country grapples with high inflation and low prices for the crude oil exports it depends on for revenues. As part of a medium-term economic recovery plan, Nigeria is targeting a growth rate of at least 7% a year by 2020, a far cry from the current situation. In the third quarter of 2016, the economy shrank by 2.24%

AMERICAS

Compania Latinoamericana de Infraestructura y Servicios (CLISA) announced a US$100m re-tap of its 9.5% 2023 bonds this week, launching the transaction at 9.8% and priced at 98.58. BCP Securities and Santander managed the trade.

Peru said PetroPeru could raise capital by issuing new bonds this year as it looks to help finance a US$3.5bn expansion of its Talara refinery, the country's Energy and Mines Minister Gonzalo Tamayo said this week. Last year the government ruled out issuing fresh bonds to fund the project, claiming it would instead look to secure loans from a syndicate of ECAs and multilaterals.

Brazilian development bank BNDES is working with the World Bank to raise up to US$500mn for a fund used ot finance infrastructure projects in the country. The move builds on a partnership inked last year between the IFC, the World Bank's private sector-focused arm, and BNDES.

Brazil's new top Prosecutor General Rodrigo Janot is looking to the Supreme Court for permission to investigate an ex-president, two senators and the former head of a Petrobras unit for attempting to derail a massive corruption probe that continues to sweep through the country's upper echelons.

The Brazilian government said it has raised in the income limits for a subsidized mortgage programme in an effort to improve access to affordable housing and stimluate the country's flagging construction sector. The programme finances home purchases below market rate and will now cover people with monthly incomes of up to BRL9,000 (US$2,900), up from monthly income of BRL6,500.

Mexico's "worse-than-expected fiscal performance" is likely to weigh on the country's credit market this year, according to a research note published by Moody's. The credit rating agency said the deficit has widened to 2.9% of GDP in 2016, up from 2.8% in 2015. The country originally targeted a deficit of 2.5% following the implementation of fiscal consolidation measures.

ASIA

Citigroup's China unit said that it had received a bond settlement agent license from China's Central Bank, allowing it to greatly expand the kinds of fixed income trading and sales services it can offer in the country's interbank bond market. The move comes shortly after JP Morgan secured a similar license from Chinese regulators, giving the bank permission to underwrite onshore bond issuances.

Shanghai Pudong Development Bank has this week raised US$500mn in bonds maturing in 2020. The bonds carry a coupon of 2.375% and priced at 99.589 to yield 2.52%. Agricultural Bank of China, Bank of China, Bank of Communications, CCB International, HSBC, Shanghai Pudong Development Bank, SPDB International Holdings Limited, and Standard Chartered Bank managed the trade.

India's Neerg Energy raised US$475mn in fresh bonds maturing in 2022. The bonds carry a coupon of 6% and were priced at par. Bank of America Merrill Lynch, Goldman Sachs, HSBC, JP Morgan, and UBS managed the trade.

India's ReNew Power raised US$450mn in green bonds this week. The company managed to tighten pricing by 37.5bp on the back of strong demand, settling on a coupon of 6%. Goldman Sachs, JPMorgan, HSBC, Bank of America Merrill Lynch, and UBS managed the trade.

India's HPCL could raise up to US$500mn through a bond issue in the first half of this year as it looks to modernise its refinery in Visakhapatnam and nearly double the capacity of the plant.

Indonesian mining services provider Bukit Makmur Mandiri Utama sold US$350mn in bonds maturing 2022. The bonds carry a coupon of 7.75% and were priced at 98.986% to yield 7.8294%. Bank of America Merrill Lynch, JP Morgan, and Morgan Stanley managed the sale.

RUSSIA, CIS & EUROPE

Russian truck maker Kamaz has approved a RUB30bn (approx. US$504mn) bond programme this week. The bonds will carry a tenor of 15-years and be sold via public auction, the company said.

Russian CPI decreased to 5.5% in January from 6.0% in December, in line with analyst expectations. The Russian Central Bank maintained its position that it could start cutting rates again as early as the second quarter 2017.

Bonds & Loans is a trusted provider of news, analysis, and commentary that helps illuminate the most significant issues, events and trends impacting the global emerging credit markets.

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