Turkey's GarantiBank new notes trade up; Dubai's DEWA outperforms; bond fund inflows rise

By Christine Van Dusen

Atlanta, Sept. 7 - Emerging markets investors on Friday remained optimistic about efforts to boost the global economy and snapped up new bonds from Turkey's Turkiye Garanti Bankasi (GarantiBank), Aruba and Chile's Banco de Credito e Inversiones SA (BCI).

GarantiBank's new two-tranche issue of $1.35 billion notes due 2017 and 2022 received a lot of attention on Friday. "They performed very well from the word 'go,'" a London-based trader said.

Other standouts include Ukraine, Croatia, Romania, Bahrain and Dubai Water and Electricity Authority (DEWA).

"The star of the week was Dubai Water and Electricity Authority's 2020s as a few accounts and banks cottoned onto the fact it offered good value, closing 50 [basis points] tighter on the week," a trader said.

Bonds from Emaar Properties, Jebel Ali Free Zone (Jafza) and Majid al Futtaim Holdings too ended the week on a positive note, according to the trader.

Bahrain's 2022s were also popular, but Dubai Holding was lagging a bit.

In the primary market, sources are looking out for next week's deals from Zambia and Mexico's Mexichem SAB de CV.

In other news, emerging markets bond funds saw $679.7 million in inflows for the week ended Sept. 5, up from the previous week's total of $445 million, according to a report from EPFR Global.

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