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Emerging Markets

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◆ Middle East capital securities will need to be refinanced ◆ Supranationals, agencies and municipalities have had a good war ◆ New ideas to promote covered bonds
Economic damage from the Middle East war will last for months, if not longer
Central banks in the region have stepped in with support and lenders are thought unlikely to let sub debt extend

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  • Adani International Container Terminal Private (AICTPL), part of India's Adani Group, sold its inaugural dollar bond on Monday. It raised $300m after receiving orders worth $2.85bn.
  • AirAsia X is looking to raise MR500m ($123m) from a rights issue and a placement of new stock to some shareholders.
  • Aabar Investments has pocketed MR932.4m ($229.4m) after selling down its remaining position in Malaysia’s RHB Bank, according to a source close to the deal.
  • Only a small number of holders of Corporación Nacional del Cobre de Chile’s (Codelco) bonds agreed to participate in the first stage of a tender offer the government-owned copper producer will finance using proceeds from a recent bond issue.
  • Costa Rica’s finance ministry said on Monday that it planned to begin discussions over a new $1.75bn IMF programme in the second week of January. But though an agreement would likely drive a rally in the sovereign’s bonds, Fitch Ratings warned it would not remove debt sustainability pressures.
  • The Russian IPO market reopened in 2020 with a number of new listings, giving equity capital markets investors a chance to once again back new listings from EMEA’s most important emerging market. The most impressive of all these listings was Ozon, the Russian e-commerce company, which listed on the Nasdaq to acclaim from global tech funds. Sources are hoping more Russian tech unicorns will follow it to public markets in 2021.