Kuwait bank sells $750 million bond; Oman may launch sukuk Tuesday; Brazil weakens again

By Rebecca Melvin

New York, May 22 – National Bank of Kuwait priced a $750 million bond issue on Monday at mid-swaps plus 100 basis points, which was tighter than talked, and the issue garnered favorable attention among market observers.

Price talk for the Kuwait bonds (Aa3//AA-) had been in the mid-swaps plus 115 bps area, which was revised from initial price talk of mid-swaps plus 125 bps.

The new Regulation S and Rule 144A Kuwait bonds came with a 2¾% coupon, and JPMorgan, Citigroup, HSBC, NBK Capital, First Abu are stabilization agents for the five-year senior dollar-denominated bonds.

There was also speculation that Oman would be selling its $2 billion of sukuk as early as Tuesday to get the deal in before the holiday weekend coming up in the United Kingdom and the United States.

Meanwhile, there was word that Nigeria is back in emerging markets. But there were no terms for the African deal as of yet, a source said.

In Latin America, a relief rally that was underway in Brazil’s credit markets heading into the weekend fizzled on Monday, with selling pressure sending that market and others like Venezuela down to near session lows by the end of the day.

The corruption scandal surrounding Brazil President Michel Temer rattled Brazilian bonds, the real and the Bovespa on Thursday.

Elsewhere, Lithuania auctioned €25 million of 0.3% government securities due 2021 on Monday.

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