Turkey, Vakifbank eyed; Saudi Arabia shelves deal; ADB, Nigeria advance new issues

By Christine Van Dusen

Atlanta, Feb. 8 – Trading of Asian bonds was firm on a Wednesday that saw investors focusing on Turkey while Saudi Arabia postponed issuance and Asian Development Bank (ADB) and Nigeria lined up new deals.

Recent issues from Asia performed well in the secondary market, a trader said.

“Broader cash closed unchanged to 2 basis points tighter,” he said. “China bank seniors repriced 1 bp to 2 bps tighter in the short end.”

Ten-year notes from banks from Korea, meanwhile, were 2 bps tighter on the day.

“China oil names initially moved 2 bps wider but rallied back to flat,” he said.

The bond curve for the Philippines was unchanged to ¼ point wider while Indonesia’s curve outperformed, he said.

Turkey was in the spotlight on Wednesday after the government moved to establish a wealth fund of up to $200 billion as a means to consolidate income and create resources for long-term investments. The hope is that the fund will help strengthen the economy and protect it from market volatility.

In other news from Turkey, lender Turkiye Vakiflar Bankasi TAO (Vakifbank) announced its exchange results and said the consent conditions had been satisfied. The bank will issue $227,605,000 of new notes on Feb. 13, according to a company notice.

Some market-watchers believe the amount offered in the exchange was too low, a trader said.

Vakifbank could next tap the new-style notes “in order to raise the amount close to or above benchmark size,” the trader said.

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