Morning Commentary: Panama to price; Egypt guides on dual trancher; two corporates join calendar

By Rebecca Melvin

New York, April 9 – Panama is the latest sovereign to wade into the emerging markets debt capital markets with plans to issue dollar-denominated bonds due in 2050, according to a filing from the sovereign.

Meanwhile, the Arab Republic of Egypt set final guidance on two benchmark-sized tranches of euro-denominated notes for which order books stood at €7.2 billion, evenly split between the tranches, at the time the guidance was released on Monday.

Egypt’s eight-year notes were guided to yield 4¾% to 4 7/8%, which was trimmed from earlier guidance in the 5% area and initial price talk in the low 5% area. And its 12-year notes were guided to yield 5 5/8% to 5¾%, which was lowered from earlier guidance of 5 7/8% and initial price talk in the 6% area.

Two corporate issuers also joined the calendar, including FirstRand Bank Ltd.’s inaugural dollar deal for 10-year, non-call five-year, tier 2 subordinated notes (expected rating: Ba2). Also scheduled to start a roadshow is Turkish real estate developer and investment company Ronesans Gayrimenkul Yatirim AS, which is eyeing a five-year dollar benchmark notes offering being marketed under Rule 144A and Regulation S subject to market conditions.

The Ankara-based commercial real estate development and investment company is jointly owned by Ronesans Group and Government of Singapore Investment Corp.

In secondary market news, the bonds of several Russian corporates were under fire after the U.S. Treasury on Friday named seven Russian oligarchs and 12 companies that they control as well as senior government officials as targets of new sanctions, which were imposed in response to what it described as malign activity around the globe.

United Company Rusal plc is among the sanctioned companies, and it has three bonds listed on the Irish Stock Exchange and for which storage is provided by the International Depository Clearing Co. Euroclear, which said it is assessing the new sanctions. Most recently Rusal priced $500 million of 4.85% five-year notes that priced in January.

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