South Africa issues bonds; IDB talks dollar bonds; Hana Bank sets roadshow; Kowepo firms

By Aleesia Forni

Virginia Beach, Sept. 17 – The Republic of South Africa sold a $500 million offering of five-year bonds on Wednesday, as market activity was mostly quiet due largely to the Federal Open Market Committee’s statement.

The Federal Reserve wrapped up its two-day policy meeting on Wednesday, announcing that it plans to continue its accommodative policies for a “considerable time.”

A market source said there was “not much happening” in early trading ahead of the release of the Federal Open Market Committee’s statement.

Later during the session, spreads seemed to show “little effect” from the release.

Meanwhile, the 6% 30-year bonds from Bahrain were “still doing well” on Wednesday, a trader noted, trading up around ¼ of a point on the day.

In other secondary action, the recently priced 2.625% five-year notes from Korea Western Power (Kowepo) traded around 1 bp better during the session.

In primary happenings, Islamic Development Bank set price talk for a possible five-year dollar deal and Korea’s Hana Bank scheduled a roadshow on Wednesday.

Islamic Development’s deal is a “bit out of the norm for them,” a source said, as this will be the second five-year offering the bank has done this year.

He noted that the bank typically comes to market with a single deal each year.

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