Turkey prices 30-year notes; Fibabanka follows with 10-year notes; Venezuela goes low

By Colin Hanner

Chicago, May 4 – Nearing the end of the week, two new deals priced from emerging markets on Thursday.

Turkey priced $1.75 billion 5¾% 30-year notes to yield 5 7/8%, the company reported in a Securities and Exchange Commission filing on Thursday.

The notes (Ba1//BB+) were priced at 98.247.

Initial price talks tightened to 5¾% from a 6 1/8% area.

The notes are expected to settle on May 11.

Citigroup, Deutsche Bank and Goldman Sachs were lead managers and bookrunners for the deal.

Not even a month after the public voted to give its executive branch more power, the country stabilized similarly to the way it had in 2016 after a failed coup attempt and terrorist attacks, a market source said.

“With the constitutional referendum out of the way, we have seen a further boost in investor confidence with sovereign [credit default swaps] and cash having tightened [30 basis points] since,” a market source said.

Fibabanka prices $300 million

Istanbul-based private bank Fibabanka AS sold $300 million 7¾% 10-year notes to yield 7.8998% on Thursday, a market source said.

The notes (//BB-) priced at 99.997.

Initial price talk was in the 8% area, eventually tightening to 7¾%.

Citigroup and Standard Chartered Bank were the joint bookrunners for the deal.

The notes will be issued by Fiba Holding and will be consolidated with a previously issued $100 million notes issued on March 24.

Fiba Holding might decide to offer the previously issued notes in combination with the newly raised amount, a market source said.

Argentina activity

Argentina’s Banco Macro SA priced $300 million equivalent of 17½% peso-denominated notes due 2022 at par, according to a Wednesday press release.

The notes were issued qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S, according to a company announcement.

And, in Argentina’s sovereign space, activity was on the downside.

“As strong as we opened yesterday, we are opening weaker today,” a trader said of Argentina’s sovereign bonds.

Its 6¼% notes due 2019 were quoted with a 105.9 bid, 106.4 offer.

The 7½% notes due 2026 were quoted with a 110 bid, 110½ offer.

And its 7 1/8% notes due 2036 were quoted with a 101.65 bid, 102.4 offer.

Venezuela’s shakeup

Venezuela opened the morning lower amid lowering crude oil future prices and continuing protests that have attracted the attention around the world, with some U.S. senators even introducing legislation to target those involved in the country’s corruption, Reuters reported.

The state’s oil and natural gas company Petroleos de Venezuela SA’s 8½% notes due 2017 were up ¼ point to an 88¼ bid, 89¼ offer.

Its 5 3/8% notes due 2027 were also down ¾ point on the day to a 37 bid, 38 offer.

Venezuela’s 8¼% notes due 2024 were down 1½ points to a 45 bid, 46 offer.

And its 9 3/8% notes due 2034 were down 1¼ points at a 46 bid, 47 offer.

Middle East drifting lower

As oil drifted to lows not seen in months on Thursday, Middle Eastern sovereigns were trending lower before crude future prices could touch below $46 a barrel.

Saudi Arabia’s 2 3/8% notes due 2021 were unchanged at a 98.27 bid, 98.42 offer.

Its 3¼% notes due 2026 were down 3 bps to a 97.67 bid, 97.87 offer.

And its 4½% notes due 2046 were down 5 bps to a 98.95 bid, 99.2 offer.

Oman’s 3 5/8% notes due 2021 were unchanged at 101.37 bid, 101.87 offer.

Its 4¾% notes due 2026 were down 5 bps to a 100.6 bid, 100.8 offer.

And its 6½% notes due 2047 were unchanged at a 108 bid, 108¼ offer.

Wendy Van Sickle contributed to this review.

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