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Emerging Markets

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The sovereign's public and private bonds of similar maturities are trading over 25bp apart
◆ 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

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  • Russia is on a roll with its fourth senior secured pre-export finance facility signed this month, the latest one being a $1.7bn deal for aluminium producer Rusal.
  • A mammoth $11bn book helped Egypt take $3bn for the price of $2bn with its triple tranche tap, according to a banker on the deal, as demand for higher yielding EM credits continues.
  • Moody’s downgrade of China triggered a slight widening of spreads on international dollar bonds from the country’s issuers on Wednesday, but the reaction was otherwise largely muted. Despite the tepid response, market watchers say the downgrade could, and should, do more to reset pricing in the offshore debt market. Morgan Davis reports.
  • South Korean carmaker Kia Motors has sent a request for proposals for a $648m financing to back the construction of a manufacturing facility in India, its first in the country. The loan is receiving plenty of attention from lenders looking to capitalise on opportunities in the south Asian country. Shruti Chaturvedi reports.
  • Much has been written about the weather in Hong Kong and its unpredictability. Anyone who has lived here for any length of time will know, it can lead to discomfiting situations, as one of my good friends found out this week.
  • It has been a long time coming but Indonesia has finally regained its investment grade status from all three major ratings agencies, after S&P boosted the sovereign’s rating to BBB- from BB+ with a stable outlook on May 19.