Central Asia

Bankers are hoping for some busy Kazakhstan deal flow as the Tengizchevroil (TCO) oil consortium holds discussions for an unsecured corporate loan of several billion dollars.

Oil trader Vitol is syndicating a $3bn loan with a margin of 185bp and should complete the deal by the end of the month, according to a banker involved.

Kazmunaigas (KMG) is repurchasing $3.4bn of bonds across its outstanding 2043s, 2044s, 2023s, 2025s, 2020s and 2021s.

The European Bank for Reconstruction and Development has printed a medium term note linked to Kyrgyz government debt.

It is a truism that the finances of countries, as well as companies, feel the impact from declining commodity prices. This can be good for energy importing nations, and the positive effect on consumption can boost economic growth.

In this round-up, Hong Kong and Taiwan RMB deposits shrink slightly while RMB cross-border trade settlement surges to new records in both Hong Kong and China, the RQFII programme reaches Rmb410bn ($80bn), Georgia and Kyrgyzstan work on establishing RMB swap lines with China, and Nanning authorities plan a new China-ASEAN currency index.

We remarked last week that emerging markets could face a difficult time ahead. Well, we didn’t have to wait long before the early manoeuvers in a possible currency war had an impact on sovereign CDS spreads.

London-listed Kazakh copper producer Kaz Minerals has signed a three year loan with Caterpillar Financial Services, adding to the firm’s $3.5bn of bilateral debt.

KazMunaiGas Trading — the trading arm of Kazakh oil company KazMunaiGas (KMG) — is in discussions for a syndicated loan for at least $1bn, according to bankers.

Kazakhstan Temir Zholy (KTZ), the Kazakh state-owned rail company, has signed a $300m loan with the European Bank for Reconstruction and Development and five other international lenders.

The Republic of Zambia and Georgian firm Rustavi Azot kicked off roadshows this week, providing hope that a reopening of the CEEMEA sovereign and corporate markets — courtesy of Kazakhstan and Naspers — maintains momentum.

CEEMEA borrowers pounced on a clear window this week and paid for it with premiums as high as 50bp. But while everyone talks about the size of the concessions, it’s worth noting that issuers showed the maturity to accept them.