New deals fly as Turkey sells $1 billion tap; Benin, Qatar Islamic Bank launch

By Rebecca Melvin

New York, March 19 – New issues flew off the shelves in emerging markets debt on Tuesday as the secondary market remained firm, according to market sources.

Republic of Turkey priced a $1 billion add on to its 7 5/8% notes due 2029 at 103.30 to yield 7.15%, marking its fourth foray into the EM debt market this year so far.

The deal, which printed tight to final guidance for a yield in the 7.2% area, had a yield spread of 454 basis points over U.S. Treasuries.

With similar yield, Credit Bank of Moscow priced a $500 million deal of five-year notes at par to yield 7.121%, or a spread of 471.5 bps over U.S. Treasuries.

From Latin America, AES Gener SA priced $550 million of 60-year junior subordinated notes at 99.948 to yield 7 1/8%, which was also right in line with the two mentioned deals.

For the Middle East and Africa, the Republic of Benin launched €500 million of amortizing notes (expected ratings: B+/B) to yield 6%. The repayment schedule for the bonds is for three equal payments due on March 26, 2024, 2025 and 2026.

Pricing was tightened from a yield in the area of 6 3/8.

And Doha-based Qatar Islamic Bank SAQ launched a $750 million sukuk to yield 150 bps over mid-swaps. Pricing was tightened from initial price talk at 170 bps to 175 bps over mid-swaps.

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