Qatar Re sells bond; sentiment ‘remarkably strong’; Akbank, Evraz, Paraguay, Lenovo prep deals

By Christine Van Dusen

Atlanta, March 6 – Qatar Re printed the first hybrid bond from the Middle East on a strong Monday that saw Turkey’s Akbank TAS and Russia-focused Evraz Group SA embark on roadshows while Paraguay and China’s Lenovo Group Ltd. advanced new deals.

“Sentiment remains remarkably solid for EM credit despite markets now having fully priced in a hike by the Fed next week,” a London-based analyst said. “Following comments by her colleagues already earlier in the week, Fed Chair Yellen followed through and said that a rate hike was appropriate if employment and inflation evolve in line with the Fed’s expectations.”

Croatia-based Agrokor received some attention on Monday after S&P downgraded the company’s rating to B- from B.

“The rating downgrade triggered a new correction in the company’s bonds,” according to a report from Schildershoven Finance BV. “At the same time, the group remains highly leveraged ... currently, access to capital markets appears to be very uncertain.”

Agrokor recently saw its bonds fall as a result of the company’s conflict with Serbian electricity providers.

“Meanwhile, Agrokor [is] said to be in talks with [Russia’s] Sberbank for €300 million financing,” Schildershoven said.

Market sources were also whispering about Abu Dhabi Islamic Bank and a possible issue of dollar-denominated Islamic bonds.

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