Middle East & Turkey
Qatari real estate giant Ezdan Holdings is arranging investor meetings in Asia this week ahead of a US dollar denominated sukuk. The transaction, a follow up to the company's debut sukuk issuance last year, is likely to be benchmark in size and carry a 5-year tenor.
Kuwait's Al Ahli Bank has mandated Citi, HSBC and National Bank of Abu Dhabi to lead the FI's upcoming bond sale, according to Reuters. The bank is looking to raise five-year money through the sale of senior unsecured US dollar denominated bonds, part of its US$1.5bn medium-term note (MTN) programme.
Lebanon raised US$3bn in the international capital markets this week through a triple-tranche bond, issuing nearly twice as much as analysts anticipated it would look to raise. The sovereign managed to tighten spreads by about 12-15bp on average across all three tranches. The sovereign placed US$1.25bn in notes maturing 2027 priced at par to yield 6.85%, US$1bn in notes maturing 2032 priced at par to yield 7%, and US$750mn in notes maturing 2037 priced at par to yield 7.25%. The orderbook for the deal reportedly reached up to US$17bn. Barclays, Byblos Invest Bank, JP Morgan, and Societe Generale de Banque au Liban managed the sale.
Money supply growth in the UAE picked up this month, due in large part to an increase in government deposits, according to figures released by the country's Central Bank. M1 grew 3.1% in February, up from 1.4% the previous month. Bank deposits grew AED19.5bn month on month in February, due in part to increasing government deposits.
The Islamic Development Bank (IDB) has mandated Emirates NBD, Goldman Sachs, Gulf International Bank, HSBC and Standard Chartered to lead the bank's forthcoming US dollar-denominated sukuk. The size of the issuance is yet to be confirmed, but banking sources suggest it could range between US$500-750mn.
Egypt is set to receive the second tranche of a US$3bn facility from the World Bank, the lender's Country Director for Egypt Asaad Alem said this week. The country is due to receive the US$1bn tranche sometime this week.
Kuwait Finance House shareholders approved the issue of sukuk and other sharia-compliant financial instruments.
Bahrain's Al Baraka Bank shareholders approved capital increase and a sukuk issue, which is expected to amount to US$$500mn.
Moody's has affirmed the ratings for about 14 Turkish banks, but changed their outlook to 'negative' after a review of the sovereign rating. Akbank TAS, Alternatifbank A.S., Finansbank AS, T.C. Ziraat Bankasi, Turkiye Halk Bankasi A.S., Turkiye Vakiflar Bankasi TAO, Turkiye Garanti Bankasi A.S., Yapi ve Kredi Bankasi A.S., and Turkiye IS Bankasi A.S. all had their outlooks changed to 'negative'.
US company Symbion Power is seeking US$561mn from Tanzania's state power supplier TANESCO via international mediation, accusing African partners of breach of contract. Symbion owns a 120 MW thermal power plant in Tanzania's Dar es Salaam - one of just a few independent producers that sell power to state-owned utility Tanzania Electric Supply (TANESCO).
Gold Mineral Resources, a subsidiary of South Africa-based Goldplat, has raised US$2mn through a 1-year loan facility from the Scipion Active Trading Fund. The loan was priced at LIBOR+9.5%.
Zimbabwe's ZESA Holdings said it is close to finalising a deal with China Eximbank that will see the latter extend a US$1.1bn loan to finance the expansion of the Hwange Power Station. The station upgrades, which are being led by Sino Hydro, will add an extra 300MW to the region's grid.
The government of Paraguay is looking to price a benchmark-sized note this week. The US$500mn notes, which are being issued under New York law, have been given a provisional 'Ba1' rating by Moody's.
S&P has cut Belize's long-term foreign currency rating to selective default ('SD') from 'CC', and its short-term currency rating from to 'D' from 'C' just one week after the sovereign announced a debt exchange offer and amortisation change on its 2038s. "As per our criteria, we characterize this exchange offer as distressed as it is our view that holders of the U.S dollar bonds have accepted less than the originally promised payments because of the risk that the issuer won't fulfill its original obligations with respect to such bonds," the rating agency said in prepared remarks.
Cerberus Asset Management has proposed a debt restructuring plan for distressed Brazilian telecoms operator Oi that would among other things see the fund pump US$3bn in capital into the firm, and see the company's bank debt converted into equity. Others involved with the restructuring committee have yet to agree to the deal.
Venezuelan state oil company PDVSA vowed to honour some US$17bn in bond payments due this year on the back of stronger oil prices, Economy Vice President Ramon Lobo told the local press. Cash-strapped Venezuela depends on oil for over 90% of its hard-currency revenues, so market fears have grown over its ability to service major debt payments, as the government continued to deny likelihood of a default.
Colombia's infrastructure agency ANI received offers from Chinese, Israeli and Spanish developers for the US$515mn Cucuta-Pamplona highway concession, as part of the country’s ongoing 4G infrastructure development programme. ANI puts the estimated project costs for the 170km road above COP1.5tn (US$515mn).
Brazilian pharma company Raia Drogasil is readying the sale of fresh debentures, according to a filing with local regulators. The company could look to issue as much as BRL300mn (approx. US$98mn) in the local markets.
China has temporarily suspended imports of Brazilian beef following revelations of a corruption scandal that among other things resulted in the export of tainted meats. The EU, South Korea and Chile have followed with limited restrictions. The news saw yields on Marfrig, JBS and BRF debt jump on Tuesday.
Chinese petroleum and chemicals producer Shandong Yuhuang Chemical Co. raised US$300mn in the international markets this week. The notes due 2020 were sold at a price of 99.333% to yield 6.99%. Credit Suisse and Standard Chartered Bank managed the trade.
Korea's national oil producer, Korea National Oil Corporation (KNOC), hit the international dollar market to sell a dual-tranche US$1bn bond this week. The company sold a US$500mn 2020 tranche priced at par and carrying a coupon of 3MLIBOR+60bp, and a US$500mn 2027 tranche priced at 99.79% to yield 3.42%. Bank of America Merrill Lynch, Citigroup, Credit Agricole CIB, Deutsche Bank, HSBC, and JP Morgan managed the sale.
India's IndusInd Bank has raised Rs1,000 crore (approx. US$153mn) through the sale of Tier I Basel III-compliant notes, the bank said this week. The notes were sold as a private placement.
Moody’s reported that India’s demonetization adds to short-term adjustment pressure on the country’s non-bank finance companies, but will not derail their growing franchise. The ratings agency noted it expects that NBFCs' funding profiles will broadly remain stable, given the reduction in systemic rates.
Russia, CIS and Europe
Russian miner Norilsk Nickel could be in the market for a US$500mn Eurobond, according to Interfax.
With inflation modestly lower in February, Analysts are split on whether the Central Bank of Russia is likely to cut rates (possibly by a modest 25pb) or leave them at current levels when official meets this week. Rates/OFZs have shifted down 10-20bp, and started pricing in a slightly less hawkish CBR stance, according to analysts at ING Bank.
Italy’s Financial Security Committee has approved a US$5.6bn loan from Intesa SanPaolo to Glencore and the Qatar Investment Authority for the acquisition of a 19.5% stake in Rosneft. The loan, which was reviewed by Italian authorities for anypotential violaiton of Russian Sanctions, was part of Rosneft's privatisation initially announced in December of last year.
Russian oil systems manufacturer Borets is to start roadshowing this week ahead of a potentially US dolalr denominated bond issuance. The company is due to meet investors in Europe and the US this week, according to local press reports. Goldman Sachs, HSBC and Sberbank CIB are leading the sale.
Moody's upgraded the Government of Serbia's rating to 'Ba3' from 'B1', citing the country's progress on fiscal consolidation and other structural reforms.
Alfa Bank has mandated several banks to arrange investor meetings in the UK and Europe this week ahead of a potential senior unsecured issuance.
Ukraine's decision to impose an economic blockade on territory held by Russian-backed separatists will drag down economic growth to 1.9% this year from an earlier estimate of 2.8%, the Central Bank said on Tuesday. President Petro Poroshenko announced last week that Ukraine would halt cargo traffic with rebel-held areas, formalising an existing blockade launched in January by activists. Escalation in tension in the country’s East led the IMF to announce it was delaying the disbursement of the latest aid tranche to Ukraine's war-torn economy - part of a US$17.5bn bailout programme - until the impact of the blockade has been assessed.