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The Daily Roundup

Bandhan Bank halts lending in wake of currency ban – Oil India, BPCL to issue bonds to fund Rosneft oil field stake purchase – Tecnoglass wraps up investor meetings ahead of bond sale – Nigeria outlines projects to be backed by green bonds – Argentina’s Province of Entre Rios finalises roadshow – Saudi Arabia to reveal reserve figures in Aramco IPO disclosures

Nov 16, 2016 // 6:03PM

Indian microfinance and conventional lender Bandhan Bank has confirmed it has suspended microfinance lending in the wake of the country's currency ban, prompting suggestions other lenders could follow suit.

Oil India and BPCL will issue fresh bonds worth between US$500mn and US$700mn in a bid to refinance a bridge loan taken to buy stakes in Tass-Yuryakh and Vankor, two oil fields operated by Rosneft OAO. IOCL, Oil India and BPCL are to jointly buy a 29.9% stake in Taas-Yuryakh oilfield in East Siberia for US$1.12bn and a 23.9% in the Vankor oilfield for US$2.02bn.

Colombian glass company Tecnoglass has wrapped up investor meetings ahead of a possible US$225mn debut bond. Bank of America Merrill Lynch and Morgan Stanley are managing the trade.

The Nigerian government has released guidelines for up to NGN78bn (US$248mn) worth of climate aligned projects that could be funded with the proceeds from green bonds. The projects span various sectors including agriculture, transportation, sanitation and energy.

The Asian Development Bank (ADB) and India inked a US$500mn (Rs 3,390 crore) loan agreement to build a 9.8 km long road bridge across the Ganga river, improving transportation links between north and south Bihar. The Bihar government will provide support equivalent to US$215mn for the project as part of the agreement.

The South African rand continued its four-day slump following a broad EM selloff, falling to its lowest levels since September 2 at 14.441 to the US dollar, while yields on 10-year government bonds climbed 8 bp to 9.26% - a five-month high, according to data from Bloomberg.

Fitch has issued fresh warnings over the state of global credit markets this week. With 35 of the 134 countries assessed by the ratings firm currently holding a negative outlook, about US$7tn of government debt (16% of global debt) is at risk of a downgrade.

Honduran financial group Inversiones Atlantida has completed roadshows to market a potential debut US dollar bond through Oppenheimer.

Argentina's Province of Entre Rios has completed roadshows ahead of a possible US dollar bond. Citigroup, HSBC and Santander are managing the trade.

Saudi Arabia is reportedly set to reveal the size of its oil reserves as the country prepares for the long-awaited Saudi Aramco IPO. Saudi Arabian energy minister Khalid al-Falih has said all Aramco disclosures - including reserves - would be verified by third parties.

Kenya's National Treasury, the Nairobi Securities Exchange, and Central Depository and Settlement Corporation are said to be in the final stages of preparing a mobile bond trading platform, M-Akiba, which the government hopes will increase participation in the country's credit market and incentivise savings. The platform's launch was originally scheduled for last October, but was delayed due to technical challenges.

The Central Bank of Kenya (CBK) has boosted its efforts to shore up the country's currency, withdrawing Sh25bn from the country’s foreign currency reserves to cushion the currency's fall and pay back existing debt.

Argentina's Central Bank on Tuesday cut its benchmark interest rate for the second time in two weeks in a surprise move, lowering it by 50bp to 25.75%. Last week, it also lowered the rate by 50bp after six weeks of rates remaining unchanged.

One of Samarco's lead shareholders, BHP, will seek to commence restructuring of the former's debt after it missed multiple debt repayments.

The World Bank will provide the second US$1bn tranche of its US$3bn budget support to Egypt by early January, the bank's vice president Hafez Ghanem said on Tuesday. The World Bank provided the first US$1bn to Egypt earlier in 2016, while the third tranche is expected to follow later in 2017.

Gazprom has mandated banks for roadshows beginning on November 21 ahead of a possible CHF-denominated senior unsecured bond issuance. The move comes less than a week after the Russian oil giant place €1bn in 7-year notes.

Kazakh banks Kazkommertsbank and Halyk Bank have denied reports the two are planning a merger. If joined, the two would account for nearly 40% of the country's banking sector.

China’s Premier has confirmed that the country will achieve its 2016 growth target of 6.5-7%, raising further speculation that the country's Central Bank could allow further currency depreciation.

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