Market eyes new deals from Poland, EDB and QNB as spreads remain firm; Koc joins calendar

By Rebecca Melvin

New York, Feb. 28 – Emerging markets were firm on Thursday with several new issues priced and spreads overall performing well amid net market buying into month-end, according to market sources.

The Republic of Poland launched and priced €2 billion of 10-year and 30-year green bonds, with spreads tightening about 10 basis points between initial price talk and final terms.

Poland’s €1.5 billion of 1% notes due 2029 priced at 99.462 to yield 1.057%, or a yield spread of mid-swaps plus 35 bps And a sister tranche of €500 million of 2% notes due 2049 priced at 98.425 to yield 2.071%, or a yield spread of mid-swaps plus 77 bps.

Spread tightening for this week’s deals from the Middle East has been more dramatic.

Emirates Development Bank PJSC’s $750 million of 3.516% five-year notes saw yield spread drop 32 bps during pricing to 98 bps.

Also in the primary market, Turkey’s QNB Finansbank AS launched a $500 million offering of 5˝-year senior notes to yield 6.95%.

Meanwhile, Istanbul-based Koc Holding AS announced plans for a new offering of five-year to seven-year dollar-denominated notes of benchmark size.

Turkey’s largest industrial conglomerate selected Bank of America, Citigroup and JPMorgan to arrange fixed-income investor meetings for the Regulation S and Rule 144A deal starting on Friday.

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