Turkey brings new notes; Colombia advances deal; Argentina, Embraer, Kexim, GIB ahead

By Christine Van Dusen

Atlanta, Jan. 18 –Turkey braved the primary market on Wednesday – even as the sovereign awaited an update from Fitch Ratings and the upcoming meeting of the Central Bank – amid better stability for emerging markets.

“This trade has probably killed some of the technical bid we had in cash from ETF buyers,” a trader said. “The belly has underperformed, giving back most of its gains over the last few sessions. We are seeing some flattening in the curve.”

In the new deal, Turkey priced $2 billion 6% notes due March 25, 2027 at 98.858 to yield 6.15%, or Treasuries plus 375.7 basis points, according to a filing from the sovereign.

The notes were initially talked in the 6.2% area.

Barclays, Citigroup, Goldman Sachs and QNB Capital were the bookrunners for the Securities and Exchange Commission-registered deal.

Valuations on the new bond looked “attractive versus the curve, with Turkey 2045s at 6.65% area,” another trader said.

In the gray market the new notes were seen trading up 25 cents on the bid side and 75 cents on the offer side.

In other news, Colombia launched a $2.5 billion issue of notes due in 2027 and 2045, and the Philippines set talk in the 3.95% area for a dollar-denominated issue of notes due in 25 years. And several other issuers – including Argentina, Brazil’s Embraer SA and Gulf International Bank BSC (GIB) – lined up deals.

© 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.