Turkey, Kipco sell notes; Hungary eyed; Bank of Sharjah postpones; Sri Lanka plans notes

By Christine Van Dusen

Atlanta, Feb. 16 – Turkey priced a tap and Kuwait Projects Co. (Kipco) printed a new deal on a strong Thursday for emerging markets assets.

“It seems like there is not much that can derail the strong market sentiment at this moment,” a London-based analyst said. “EM credit is back on track, with the EMBI chasing the 300 basis points mark despite [Federal Reserve Chair Janet Yellen’s] attempt to prepare markets for a quicker pace in rate hikes, yesterday’s strong inflation print and generally assertive data.”

Investors were also keeping an eye on Hungary, where the central bank is saying the sovereign should reduce external vulnerability and not issue on the eurobond market.

Most credits from Central and Emerging Europe were “slightly better” on Thursday, “as core rates come back with demand from ETF accounts,” a London-based trader said.

In other trading, the rally in high-yield Asian sovereign bonds took a breather on Thursday on the news that Sri Lanka could issue up to $1.5 billion of notes in March.

United Arab Emirates-based Bank of Sharjah has delayed pricing of a benchmark-sized issue of dollar-denominated notes due in five years until next week, a market source said.

The issuer is waiting until it has received approval from the central bank to release audited financial statements from 2016.

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