Issues from Nigeria, Ezdan; Brexit, South Africa, Halkbank in focus; Gazprom advances deal

By Christine Van Dusen

Atlanta, March 29 – Nigeria and Qatar’s Ezdan Holding Group sold notes on Wednesday as the United Kingdom began its exit from the European Union.

“The event is unlikely to have any meaningful market impact as long as the negotiation partners don’t dive further into details,” a London-based analyst said.

But other political risks continue for some emerging markets.

“Following recent concerns that South Africa’s President Zuma might just be about to reshuffle the cabinet and dismiss the finance minister, the arrest of [Turkiye Halk Bankasi AS (Halkbank)] deputy chief executive officer Mehmet Hakan Attila in the United States has spooked markets,” he said.

“The arrest is undeniably highly contentious, given that Halkbank is a majority state-owned bank,” the analyst said.

In response, Halkbank’s bonds traded as much as 60 basis points wider, and the company’s planned issue dollar-denominated and benchmark-sized notes due in 10 years – led by BofA Merrill Lynch – was expected to be postponed.

Investors were also keeping an eye on Credit Bank of Moscow, which was expected to price a 10½-year issue of loan-participation notes via Citigroup, Credit Suisse, HSBC, JPMorgan, Raiffeisen Bank International, Regions Securities and Societe Generale CIB.

Russia’s Gazprom OJSC – via Gaz Capital SA – launched a £850 million issue of loan-participation notes due in seven years at a yield of 4¼%, a market source said.

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