CAF sells notes ahead of FOMC meeting; Turkey curves steepen; mixed trading from Asia

By Christine Van Dusen

Atlanta, Sept. 20 – Venezuela’s Corporacion Andina de Fomento (CAF) sold notes on a Tuesday that saw mixed trading of Asian assets and mostly unchanged spreads from Turkey ahead of the Federal Open Market Committee's latest announcement.

“The Fed will begin its two-day FOMC policy meeting today and the Bank of Japan will announce its outcome of the comprehensive assessment on its monetary policy tools, besides its rate decision, tomorrow in early London hours,” a London-based analyst said. “With that in mind, [emerging markets credit has] understandably traded on a more cautious note over the last week.”

Syria also remained on radar screens.

“Over the last few days, the Syria conflict has moved into the spotlight again, following accusations of each side of not upholding the terms of the cessation of hostilities that was brokered by Russia and the U.S.,” the analyst said.

And Egypt received some attention as the sovereign appeared to be “on a good track to achieve a three-year $12 billion extended fund facility program,” he said. “Both sides had previously agreed at staff-level, but the deal was subject to support from other donors.”

Though Egypt had already secured a $1 billion deposit from the Abu Dhabi Fund for Development, “the Arab Republic is currently also in advanced talks with Saudi Arabia on a $2 billion to $3 billion loan and with China on $4 billion in loans for sewage and renewable energy projects,” he said. “The sovereign also intends to tap international debt markets, with the cabinet previously having approved plans for issuance of $3 billion to $5 billion.”

Turkey unchanged

Spreads for bonds from Turkey were mostly unchanged on Tuesday, a London-based trader said.

“Cash hasn’t been able to keep up with the Treasury bid,” he said. “Curves have steepened up a touch, with buying in 10-year benchmark bonds and the Street offering long-end bonds for choice.”

Banks and corporates were trading tight to the sovereign, he said.

“We also saw some decent clip coming out of the Middle East, who remain sensitive to ratings changes,” he said.

Asia mixed

Trading from Asia was mixed on Tuesday, according to a report from Schildershoven Finance BV. Ten-year bonds from Indonesia were up 19 basis points while Malaysia’s were down 3 bps.

China’s 2027s, meanwhile, were down 11 bps, the report said.

CAF sells notes

In its new deal, Venezuela’s CAF priced $1 billion 2 1/8% notes due Sept. 27, 2021 at 99.811 to yield 2.165%, according to a company filing.

Barclays, Citigroup, HSBC and BofA Merrill Lynch were the bookrunners for the Securities and Exchange Commission-registered deal.

The proceeds will be used for general corporate purposes.

CAF is a lender based in Caracas.

Delhi Airport sets roadshow

In other news, India’s Delhi International Airport Pvt Ltd. will set out on Wednesday for a roadshow to market an issue of dollar- and rupee-denominated notes, a syndicate source said.

The dollar notes are likely to carry a tenor of 10 years. The rupee notes are expected to be due in seven years.

Citigroup, Standard Chartered Bank, Axis Bank, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan and MUFJ Securities are the bookrunners for the Rule 144A and Regulation S deal.

The roadshow will start in Singapore and travel to Hong Kong, London, New York and Boston before concluding in Los Angeles on Sept. 28.

Fosun sells bonds

On Monday, China’s Fosun International Ltd. – via Wealth Driven Ltd. – priced a $120 million tap of its 5½% notes due Aug. 17, 2023 at par to yield 5½%, according to a company announcement.

The Regulation S notes will be consolidated with the existing $180 million notes.

The proceeds will be used to refinance some existing indebtedness, for overseas mergers and acquisitions and for working capital and general corporate purposes.

Other details were not immediately available on Tuesday.

Fosun is a Shanghai-based conglomerate.

© 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.