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Emerging Markets

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Business has sagged in the third quarter, but the pipeline is busy, despite an intractable war
Private bonds are now being offered in the open market wider than where public deals trade
Even as USTs stay near 5%, supply expected to pick up

Data

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  • Indonesian instant noodle maker Indofood CBP Sukses Makmur has closed syndication of its $2.05bn-equivalent acquisition loan. The allocations are expected to be out in the next few weeks.
  • Commodities trading company Glencore Agriculture is making its loan debut in Asia, seeking $300m from the syndication market as a way to establish itself in the region and show its independence from its parent. The thin pricing on offer means only banks keen to build a relationship with the company in the hope of getting ancillary business will jump in, writes Pan Yue.
  • Bond markets in Latin America were quiet on Monday ahead of Tuesday’s US election. But the Mexican peso, and bonds issued by state-owned oil giant Pemex, could be most vulnerable to a surprise or uncertain result given they are two of the most liquid assets in EM.
  • As the Argentine Province of Buenos Aires approaches six months in default, a creditor group holding nearly half of the issuer’s international bonds has hired a major international law firm and says it is “prepared to evaluate all available options”.
  • Sovereigns have dominated bond issuance in the CEEMEA region this year. But rating agencies expect sovereign downgrades in 2021.
  • China Oceanwide Holdings has returned for a $291m loan that is backed by a letter of credit.