EM finishes week on solid ground; Turkey tap, Kipco issue in focus; Agrokor could rebound

By Christine Van Dusen

Atlanta, Feb. 17 – Emerging markets assets ended the week on strong footing on Friday, with investors taking particular interest in Turkey’s tap and the new issue from Kuwait Projects Co. SPC Ltd. (Kipco).

Turkey’s new issue came to the market on Thursday at 102.639 and traded Friday at 102.80 bid, 103 offered on Friday, a syndicate source said.

The notes priced at a yield of 5.65%, or Treasuries plus 320.5 basis points, following talk in the 5.85% area.

“This compared to a bid yield of 5.55% pre-issuance and therefore attracted an order book four times larger than the issuance size,” he said.

“The initial issuance in mid-January saw a strong recovery in the Turkish sovereign, circa 55 bps tighter, but even more in banks’ bonds, circa 90 bps tighter on average over the last month,” he said.

The Turkish tap drew a total of $4.6 billion from 210 orders, another syndicate source said.

Meanwhile, the new issue of notes from Kipco – $500 million 4˝% notes due 2027 that priced Thursday at par – traded Friday at 100˝ bid, 100 5/8 offered, a trader said.

Investors were also watching Croatia-based Agrokor Group, which recently saw its bonds plummet after a Russian official said the nation might not help the Croatian company refinance its loans.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.