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Emerging Markets

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◆ Gulf private placements bite back ◆ Bond new issue premiums rise ◆ CLOs catch a break
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

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  • VTB Capital is encouraging Russian borrowers to consider the dim sum market as a supplementary source of funding because their access to core markets has been restricted since the US imposed sanctions in April. However, the potential scale of the dim sum market is limited.
  • Brazilian steelmaker Gerdau will buy back $1bn of existing dollar bonds after receiving over $1.345bn of offers from bondholders to participate in a tender offer during the early-bird period, taking advantage of a strong cash position after asset sales and a recent local bond issue.
  • Vietnam Airlines is planning to float on the country’s main board in the first quarter of 2019 as the government looks to trim its stake in the flag carrier.
  • Saudi Electricity Co has closed a $2.15bn revolving credit facility after months of talks, as bankers concede that banks are "unlikely to turn the tap off" on Saudi deals amid international political upheaval.
  • iDreamSky Technology Holdings has pocketed HK$838m ($107.1m) after pricing its IPO just below the mid-point of guidance, according to a banker close to the deal.
  • Grand Baoxin Auto Group took $358m from the syndicated loan market after launching its latest deal at $200m in September.