Morning Commentary: Turkey’s Isbank to offer dollar benchmark bonds; Qatar struggles with sanctions

By Colin Hanner

Chicago, June 20 – With sovereign issuers taking the bulk of attention in emerging markets on Monday, particularly Argentina’s $2.75 billion of 100-year bonds, that trend looks to extend into Tuesday with the Republic of Cyprus and Russia expected to come to market, market sources said.

In the corporate new issue space, Turkiye Is Bankasi AS (Isbank) is expected offer a dollar-denominated benchmark Rule 144A and Regulation S Tier 2 offering (B1//BB) of notes following a morning investor call on Tuesday.

In April, Isbank priced $750 million seven-year notes (Ba1//BB+) at par to yield 6 1/8%, a deal that was upsized from $500 million and was overbooked at $1.9 billion, Prospect News reported.

A market source said comps for the new issue are the bank’s 2024 notes at z-spread plus 372 basis points, Isbank’s 2022 notes – a $600 million deal that priced last October at par to yield 5½% – at z-spread plus 342 bps and recent seven-year notes from Yapi ve Kredi Bankasi AS (Yapi Kredi) at z-spread plus 384 bps.

In the Middle East, developments continued to unfurl in and around Qatar, though comments from all sides “have likely rather complicated the situation and point towards a longer stand-off,” a market source said.

The source continued, adding that while Qatar’s finance minister signaled a willingness to talk about the current sanctions with other countries, the United Arab Emirates’ counterpart said that isolation could persist if Qatar continued to support a “perverted view of what their political role is.”

© 2015 Prospect News.
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