Kenya prints notes amid turmoil; EM spreads tighten; SriLankan Airlines sets roadshow

By Christine Van Dusen

Atlanta, June 17 – Kenya, Commercial Bank of Qatar, National Bank of Ras Al Khaimah (RAKbank), Nigeria’s Access Bank plc, China’s Noble Group Ltd. and Singapore’s Koh Brothers Group Ltd. sold notes on Tuesday as spreads recovered from headlines out of Kenya and Iraq.

“We are seeing a small bounce this morning, with credits a few basis points tighter, on average,” a London-based analyst said.

In Kenya on Monday, terrorists attacked and killed about 48 people watching the World Cup. And in Iraq, violent clashes between Iraqi security forces and Islamic militants continued. All of that moved spreads wider on Monday.

On Tuesday, emerging markets assets recovered some losses. And Kenya went ahead and priced a two-tranche issue of $2 billion notes due in five and 10 years, a market source said.

The $500 million 5 7/8% notes due 2019 came to the market at par to yield 5 7/8%, following talk in the low-6% area.

The $1.5 billion 6 7/8% notes due 2024 priced at par to yield 6 7/8%, following talk in the low-7% area.

The notes were up between 2 points and 2¾ points on Tuesday morning, a trader said.

“The bonds are trading well,” she said.

In other deal-related news, some issuers gave guidance for upcoming deals, including Ecuador and China’s Cheung Kong (Holdings) Ltd. And SriLankan Airlines Ltd. made plans for a roadshow.

© 2015 Prospect News.
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