GarantiBank plans benchmark as soon as Tuesday; Petrobras to issue add-on; oil lifts LatAm

By Colin Hanner

Chicago, May 15 – The new issue pipeline opened up on Monday in the emerging market space, with Istanbul-based Turkiye Garanti Bankasi (GarantiBank) expected to offer Basel III-compliant tier 2 10-year benchmark bonds as soon as Tuesday, a market source said.

As for other new deals expected to come to market soon, Senegal wrapped up investor meetings for a dollar-benchmark deal on Monday, and Nigeria’s Zenith Bank began investor meetings on Monday for a five-year dollar benchmark issue.

Petroleo Brasileiro SA is planning to offer additional 6 1/8% notes due 2022, 7 3/8% notes due 2027 and 7¼% notes due 2044, the company said in a 6-K filing with the Securities and Exchange Commission.

Currently, Petrobras has $2 billion outstanding 2022 notes, $2 billion outstanding 2027 notes and $1 billion outstanding 2044 notes.

Worries of the global glut of crude oil were temporarily shelved on Monday in emerging markets, as Saudi Arabia and Russia agreed to support the Organization of Petroleum Exporting Countries extending supply cuts for another half-year, media sources said.

Crude oil shot up by several points on the news, which is thought of as a precursor to upcoming meetings on elongating the supply cut extension between other OPEC countries.

That news spread to trading in Latin American markets, where one market sources saw “retail buyers all over the place.”

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