Saudi Arabia prices $9 billion deal; 4finance sells notes; Turkey stable ahead of vote

By Colin Hanner

Chicago, April 13 – The last day of an Easter-shortened week for most of the world ended with the last of new deals being pushed through in emerging markets.

“As we head into the Easter weekend in many countries, market activity has remained high thanks to decent issuance volumes in [emerging markets],” a market source said.

The most notable was Saudi Arabia’s pricing of $9 billion of notes due 2022 and 2027 on Wednesday, a market source said.

On Wednesday morning, a market source said both of those deals tightened, and by Wednesday afternoon, initial spread guidance was 100 basis points for the five-year notes and 140 bps for the 10-year notes.

Latvia’s 4finance Holding SA said it priced $325 million of five-year senior notes at par to yield 10¾% on Thursday.

A “yes” or “no” vote will take place in Turkey over the weekend, as voters will decide to whether to shift more power to President Recep Tayyip Erdogan. Yet, with potential instability and uncertainty coming out of a vote on either side, the country’s bonds have not gone through the shock many expected.

“Turkey credit has remained remarkably resilient over the last few weeks, with sovereign cash trading [10 bps] wider on spread over the week, which is in line with other similar-rated EM sovereigns, and also offset by the tightening in U.S. Treasuries,” a market source said.

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