Egypt brings new deal to primary market; oil, Trump, Turkey in focus; NTPC readies deal

By Christine Van Dusen

Atlanta, Jan. 24 – Egypt priced an awaited issue of $4 billion of notes on Tuesday as investors continued to eye oil prices and U.S. President Donald Trump’s executive orders.

“In line with expectations, U.S. President Trump yesterday signed an executive order to retract from the Trans-Pacific Partnership while also announcing a very major border tax,” a London-based analyst said.

Meanwhile, oil prices ticked higher as Iraq said it was close to implementing output cuts.

“We therefore continue with a solid environment in EM credit, which has also lured the Egyptian sovereign to the primary markets,” he said.

Egypt’s three-tranche deal totaled $4 billion of five-, 10- and 30-year notes, which came to the market via BNP Paribas, JPMorgan and Natixis Securities in a Rule 144A and Regulation S deal.

“I know people will gravitate to the 30-year, just for the bang for buck,” a London-based trader said. “That part of most sovereign curves tends to trade quite flat. It should also do well.”

The five-year tranche will likely appeal most to Middle Eastern accounts, the analyst said.

“The longer 10- and 30-year tranches are targeted to international investors,” he said.

Investors were also watching Turkey, where the central bank raised the late liquidity window lending rate to 11%.

That move “has failed to inspire the market,” a trader said. “Credit default swaps went 5 basis points wider on the headlines.”

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.