Poland — rated A2/A-/A- — ended a weeks long CEEMEA drought on September 3, proving the resounding appetite for strong Eastern European sovereign paper. But the next CEEMEA government issue could be the Republic of Iraq rather than the Republic of Romania. The Iraqi government is returning to the international bond market after almost a decade, and takes its B- rated credit story on the road from Thursday. Egypt, meanwhile, has stated its intention to sell a $1bn or $1.5bn conventional deal before the end of the year.
In the Islamic, although not emerging, market the International Finance Corp opened books on its second ever sukuk on Tuesday.
The Latin America bond market also shows signs of heating up, and a bond deal could hit screens as early as Wednesday, according to a bankers at a bulge bracket firm. Mexican REITs Fibra Uno and Fibra Terrafina, meanwhile, are on the road. But despite an uptick in activity, Lat Am debt bankers are not allowing themselves to hope for a busy September. The market backdrop is still tough and financing needs are still low. Total Lat Am supply for 2014 totalled some $135bn, but 2015 has only managed $70bn. Bankers think the region will be lucky to hit the $100bn by year end.
In loans, Egypt’s Banque Misr is close to mandating banks for its first loan in 11 years, according to bankers. The loan will be launched around $200m and could increase to $300m. One banker said there were three lead banks, one of which was Bank ABC. Another banker said that banks would be mandated to lead the loan next week.
First Gulf Bank (FGB) and Union National Bank (UNB) have secured new money loans for their liquidity needs, with the higher-rated name paying a higher margin. First Gulf Bank inked its $1bn three-year deal on Monday, with a margin of 70bp and 85bp all-in pricing. The bank said that funds would be used to meet the liquidity requirement of the United Arab Emirates central bank. The deal was led by Bank of America Merrill Lynch and Wells Fargo.
Union National Bank has closed books on its $500m deal and will sign in the next couple of weeks, according to a banker on the deal. The three year loan has a margin of 75bp and will be increased from $500m according to bankers.
Both banks are rated by Moody’s and Fitch, although UNB (rated A1/A+) paid 5bp more for its three year loan than FGB (rated A2/A+) paid for a loan of the same tenor.
Bulgarian Energy Holding, the state electricity and gas group, is looking for €650m of loans as part of a renegotiation with two US power generators. The state group has invited banks to tender offers to lead a five year loan of up to €650m and also to lead a bond issue for the same amount. BEH will use funds from the proposed loan to repay debts to two US power companies which produce electricity in Bulgaria.
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Banque Misr nears first loan for 11 years, for $200m