Turkcell launches $500 million deal; Middle East calendar grows; Buenos Aires set to price

By Rebecca Melvin

New York, April 5 –Turkcell Iletisim Hizmetleri AS launched on Thursday a $500 million deal of 10-year notes to yield a below the tight end of guidance, and the Middle East region was active, adding another two deals to the calendar for a total of six now expected to price in the next week.

Pricing for the Istanbul-based mobile phone operator new 10-year note was set at 6.1%, compared to guidance of 6 1/8% to 6¼% and initial price talk of 6¼% area.

The size of the order book was more than $1 billion at the time guidance was released.

Joining the calendar is a Rule 144A and Regulation S five- and 10-year dual tranche deal for Oman Telecommunications Co. SAOG (Omantel), which selected Citigroup, Credit Suisse, Bank ABC, Bank Muscat, HSBC and Standard Chartered Bank as joint bookrunners to organize fixed-income investor meetings in Dubai, London, New York and Boston to be held next week through Wednesday.

Dubai’s Noor Bank PJSC announced a Regulation S only five-year, dollar-denominated Islamic bond, with that paper joining the Regulation S only sukuk for Sharjah Islamic Bank, which is also planning a five-year dollar benchmark.

These deals join Egypt’s dual tranche of euro notes expected to price next week as well as Mannai Corp. QPSC’s planned non-call five perpetual note and Damac Real Estate Development Ltd.’s possible five- or seven-year sukuk.

Elsewhere, DBS Group Holdings Ltd. priced €600 million tier 2 capital notes, representing its inaugural issuance under a $30 billion global medium-term note program, according to an announcement.

And terms were expected on Buenos Aires Province, which was pricing a peso-denominated seven-year floating rates note by auction.

Brazil was in focus after the Brazilian Supreme Court rejected a request from former President Luiz Inacio Lula da Silva to remain free from prison while he appeals a Car Wash corruption conviction.

The 6-5 ruling against exemption for the popular politician was expected to all but end his planned run for president in this year’s election slated for October.

One New York-based market source was surprised about at how close the vote turned out to be. “This should be positive for risk assets in Brazil,” the source said, noting that the U.S. dollar to Brazilian real currency rate actually slid from 3.30 to 3.35 intraday but that the Brazil ETF (EWZ) was seen posting gains after the market close.

According to reports, the court decision, which came after midnight on Thursday morning after an all-day deliberation, could help spur the prospects of other potential candidates in the field like Jair Bolsonaro, a right-wing former army captain, and Marina Silva, an environmentalist.

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