Primary sees IBK, Tecnoglass; Abu Dhabi, Kuwait, Biostime, Aeropuertos Argentina line up deals

By Christine Van Dusen

Atlanta, Jan. 23 – Industrial Bank of Korea (IBK) and Colombia’s Tecnoglass Inc. sold notes on a Monday that had investors keeping an eye on President Donald Trump, as well as bonds from Turkey.

“It is fair to say that the cloud of uncertainty has not been lifted yet, but in line with the new administration’s America First policy, international trade agreements seem to be on the top of the agenda,” a London-based analyst said. “While fears of a more protectionist U.S. might therefore [become reality] sooner than later, the weekend was short of revealing further details on tax cuts and fiscal stimulus.”

Investors also continued to watch Turkey.

“Amid the recent sell-off in the lira and widening in Turkish credit, concerns on the Turkish central bank’s limited room to counteract movements in capital flows have mounted,” the analyst said. “While the [central bank] could intervene in the currency markets, its net reserves are considered as low at around $38 billion as of Jan. 13.”

Investors in Turkish bonds, therefore, are “demanding a tightening in liquidity,” he said. “In the meantime, market focus has shifted to tomorrow’s rate decision” and possible downgrades from Moody’s Investors Service and S&P.

In deal-related news, Abu Dhabi, Kuwait, China’s Biostime International Holdings Ltd. and Aeropuertos Argentina 2000 SA took steps toward the primary market.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.