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The Daily Roundup

Peru may oust Odebrecht and hold new auctions for GSP – Bank Muscat credit outlook slides – ADCB, UNB could merge next year – Pemex closes US$1.5bn RCF – Nigerian banking sector outlook deteriorates – Indonesia to raise US$3.5bn from capital markets next year

Nov 21, 2016 // 6:35PM

The Peruvian government could set up a new auction for its Gasoducto Sur Peruano natural gas pipeline project, as corruption-ensnared Odebrecht may have to leave the US$5bn project as a precondition for a number of banks to provide a US$4.1bn syndicated loan to help finance the project.

S&P Global Ratings revised its outlook on the long-term counterparty credit ratings on Bank Muscat to negative from stable.

Abu Dhabi Commercial Bank (ADCB) is likely to merge with Union National Bank (UNB) within the next 12-18 months according to Arqaam Capital. The merger of National Bank of Abu Dhabi (NBAD) and First Gulf Bank (FGB) is already already going ahead and will likely be finalised by Q1 2017, and according to sources speaking to Bloomberg, the Emirate may also merge Abu Dhabi Islamic Bank (ADIB) and Al-Hilal Bank.

Pemex has closed a US$1.5bn revolving credit facility (RCF), according to Reuters.

The Dominican Republic's credit rating has been upgraded from ‘B+’ to ‘BB-‘ by Fitch Ratings.

Fitch Ratings has revised downwards the long-term IDRs of First Bank of Nigeria ltd., FBN Holdings plc, Diamond Bank plc, Fidelity Bank plc, First City Monument Bank ltd and Union Bank of Nigeria plc from ‘B’ to ‘B-‘ on expectations that the sovereign will not be able to support the sector as it has previously.

Indonesia is planning to raise up to US$3.5bn from the international capital markets in December, according to Schildershoven Finance.

The Philippines is looking to issue US$2bn in Q1 2017 in order to buy back existing debt.

The People's Bank of China (PBoC) pumped CNY990bn (US$145.6bn) into the inter-bank market this week, a significant expansion of its operations in previous weeks, in a bid to further ease liquidity. It also doubled the amount of its reverse-reverse repo operations.

The Colombian President said this weekend that the government will discuss a new peace deal in Congress on November 23. It is expected policymakers will avoid holding a referendum and the country's lawmakers will make the final decision on any deal going ahead.

EM policymakers are getting more concerned about currency weakness, with Brazil, Malaysia, Korea, India, and Indonesia all taking action to help support their currencies, BBH notes. The Central Banks of Hungary, Malaysia, South Africa, Turkey, and Colombia all meet this week, and are all expected to keep rates steady.

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