Bahrain issues notes; Yapi Kredi, Oman, KDB, Slovenia on deck; Dubai firms, Egypt tightens

By Christine Van Dusen

Atlanta, Feb. 21 – Bahrain priced notes on a post-holiday Tuesday that was slightly busier and firm for many emerging markets assets.

“With the U.S. being out for Presidents’ Day yesterday, markets followed developments in the European Union and euro zone,” a London-based analyst said. “Among the upcoming elections, the French ones are undoubtedly in the spotlight, with right wing, anti-status quo candidate Le Pen seen gaining further ground against the establishment.”

In other news, the euro-area finance minister met with officials from Greece to discuss its bailout plan.

“While no decision towards the final approval has been made yet, there was a sign of willingness from both sides that agreed to allow auditors to lay out new reforms to pensions, taxes and the labor market,” he said. “The implementation of structural reforms could also lure the International Monetary Fund to participate in a new tranche.”

Also this week, Mongolia received a $5.5 billion bailout from international lenders, with $440 million of it from the IMF.

In trading, “Dubai names were firm again,” a trader said. “Ongoing demand for Lebanon. Egypt demand into the close goes out 4 basis points to 5 bps tighter.”

Said the analyst, “Eventful day and a slight pick-up in supply and chatter. Perpetuals were a mixed bag but two-way.”

In deal-related news, Turkey’s Yapi ve Kredi Bankasi AS (Yapi Kredi) advanced a dollar deal, Oman lined up its own issue, Korea Development Bank planned two tranches and Slovenia prepped a euro-denominated transaction.

Bahrain prints notes

Bahrain’s new $600 million tap of its 7% notes due Oct. 12, 2028 notes came to the market at 102.793 to yield 6.65%, a syndicate source said.

Bank ABC, BNP Paribas, Credit Suisse, JPMorgan and Standard Chartered were the bookrunners for the Rule 144A and Regulation S deal.

The original $1 billion priced in October at par.

Yapi Kredi gives guidance

Turkey’s Yapi Kredi set initial talk in the 6 1/8% area for a dollar-denominated issue of benchmark-sized notes due in five years, a market source said.

Other details were not immediately available on Tuesday.

“The issuer had previously issued a $550 million, seven-year transaction at 4 5/8% in the beginning of July, but decided to cancel the deal following the July 15 coup attempt,” the analyst said. “With $500 million having matured on Feb. 8, Yapi was expected to be one of the first Turkish banks to approach international debt markets.”

Oman could price soon

Oman could print its planned issue of up to $2 billion of bonds as soon as this week, a market source said.

The bonds are likely to be multi-tranche and could carry tenors of five and 10 years.

The proceeds will be used to address the sultanate’s budget deficit.

“I’ve lost track of number of times this [news] has been out this year,” a trader said. “Oman came back a little into the close, but the 2026s were last trading at 97.81, which is 40 cents lower.”

The 2021s were 20 bps tighter on the month, he said.

KDB plans two tranches

Korea Development Bank is planning to issue two tranches – one fixed-rate, one floating-rate – of dollar-denominated notes, according to a company filing.

BofA Merrill Lynch, Citigroup, Commerzbank, Credit Agricole CIB, Credit Suisse and KDB Asia are the bookrunners for the Securities and Exchange Commission-registered deal.

The proceeds will be used for general operations, including extending foreign currency loans and repaying debt.

The lender is based in Seoul, South Korea.

Slovenia considers issuance

Slovenia could issue euro-denominated notes alongside a tender offer, according to a filing from the sovereign.

The sovereign wants to buy back up to $750 million of its 2022, 2023 and 2024 dollar-denominated notes. The offer expires on Feb. 28.

Barclays, BNP Paribas, Deutsche Bank, Goldman Sachs and Societe Generale CIB are leading the transaction.

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