Morning Commentary: Cyprus, Nigeria offering bonds; Dana Gas to hold call for ‘unlawful sukuk’

By Colin Hanner

Chicago, June 19 – The calendar in emerging markets will look leaner than past weeks, though a steady stream of new issues is expected on the week.

“After few busy weeks, it will be a relief to look forward to this week’s macro schedule,” a market source said, citing just the preliminary Purchasing Managers Index and U.S. home sales data on the week.

Discussions following the Federal Reserve’s rate hike last week are expected to carry over into the week, as are Brexit negotiations and the recently exiled Qatar, the market source added.

For the new issue pipeline, EuroChem Global Investments Ltd. and Sibanye Gold Ltd. are expected to come to market this week, and newly offered notes from Cyprus and Nigeria – a euro-denominated and a $300 million deal, respectively – will price in the coming days.

Dana Gas PJSC, which is now seeking to restructure an allegedly unlawful sukuk that is due in the fall of this year, will hold an investor call on Wednesday that will give “background on declaration of the current Sukuk’s unlawfulness, proposed solution for the way forward” and “provide proper context and additional information regarding the planned restructuring,” the company said in a news release.

In May, the company began restructuring talks with its sukuk holders “due to continued challenges it faces around cash collections and resulting need to focus on short to medium term cash preservation,” according to a company notice.

© 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.