Africa, Middle East dominate deal flow in EM; Oman prices $2 billion of seven-year notes

By Rebecca Melvin

New York, May 23 – At least four dollar-denominated deals were priced in the emerging markets by African and Middle Eastern issuers on Tuesday. But the primary markets in Latin America and other regions were quiet. The Export-Import Bank of Korea priced a euro-denominated deal on Monday.

In the Middle East, Oman priced $2 billion of seven-year notes at par; Bahrain’s Al Baraka Banking Group BSC backed $400 million tier 1 perpetuals at par; and Turkiye Vakiflar Bankasi TAO (Vakifbank) priced $500 million 5.65% five-year bonds slightly below par, or at 99.892. In Africa, Zenith Bank priced $500 million 7 3/8% five-year notes at par.

Each of these deals saw some after-market trading action in New York, according to a trader.

The deals followed on the heels of National Bank of Kuwait’s $750 million bond issue on Monday at mid-swaps plus 100 bps, which was tighter than talked.

In Latin America, sovereign issuers were quiet, and Brazil remained an underperformer in the secondary market for much of the session. But late in the day, Brazil caught a bid that was likely due to short covering, a trader suggested.

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