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Emerging Markets

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African mobile payment provider prepares to list, seeking large valuation
Deep breath for market as more guidance, more mandates appear
Secondary market selling of private bonds may be wreaking havoc with the primary market for public debt but the trades were still the right thing to do

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  • Emerging markets and developing economies (EMDEs) are at risk of a financial crisis as mounting debt levels are making them vulnerable to an economic shock, the World Bank warned this week.
  • Turkish banks have completed the first refi season of the year and, despite ongoing geopolitical issues including concerns about Turkey's purchase of S400 missiles from Russia, spreads in the secondary loan market have stabilised at slightly wider levels.
  • CEE
    Magnitogorsk Iron & Steel Works (MMK) broke a 16 year bond market hiatus with a five year dollar benchmark on Wednesday, raising $500m without paying a new issue premium.
  • The reception for Guangdong Energy Group’s dollar bond debut this week clearly showed the pent-up demand for investment grade names from China, but a question mark hangs over the supply forecast for government-owned issuers — particularly local government financing vehicles (LGFVs). Addison Gong reports.
  • Taiwanese commercial banks have backed away from Chinese loans, presenting a conundrum for bankers taking deals into general syndication. But a pair of leasing companies in the country offer a glimmer of hope.
  • PKO Bank Hipoteczny issued its debut green covered bond on Wednesday, the first deal of its type from Poland. This deal is the ninth covered bond with an environmental and social governance (ESG) purpose to have been launched this year and, according to Commerzbank research.