Pemex, Akbank print notes; other Turkish banks to follow; oil, Swiss franc move markets

By Christine Van Dusen

Atlanta, Jan. 15 – Mexico’s Petroleos Mexicanos SAB de CV (Pemex) and Turkey’s Akbank TAS sold notes on a Thursday that saw investors scramble after the Swiss National Bank removed a cap on the franc that was implemented in 2011 to beat back a recession.

The surprising move drove the franc up about 30% against the euro, and, “as a result, Central and emerging Europe credits were very busy, given their links to the Swiss franc,” a London-based trader said.

This didn’t have much impact on other emerging markets, though; the continuing moves in the price of oil was a larger factor there.

Asian bonds were firm for most of the session on Thursday, with high-grade cash bonds unchanged to 3 basis points tighter, another London-based trader said.

In its new deal, Mexico’s Pemex – via BBVA, Citigroup, HSBC and Morgan Stanley in a Rule 144A and Regulation S deal – printed $1.5 billion notes due in July of 2020, $1.5 billion due in January of 2026 and $3 billion due in January of 2046, according to a company announcement.

From Turkey, credit default swaps spreads narrowed by 5 bps on Thursday morning, the analyst said.

The move in U.S. Treasuries helped Turkey’s spreads, with banks moving as much as 8 bps tighter, he said.

“The time seems ripe for new issuance from Turkish banks and corporates, given where rates and spreads are,” he said.

© 2015 Prospect News.
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