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Sovereigns

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◆ First of seven syndications breaks multiple records ◆ Investor engagement and communications helped stable execution ◆ Smaller programme this year but ‘still a lot’ to tackle
SSA
Busy and ‘euro-heavy’ week ahead but dollar pipeline also building with issuers set to bring forward bond plans
◆ Minimal premium paid ◆ Size at top of range ◆ Issuer seizes upon stability
◆ 'Cautious' start say some market participants ◆ New issue premium debated ◆ Price and size praised by rivals
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  • CEE
    Turkey is in the market for a five year dollar benchmark — its first trip to international capital markets since it was plunged into financial crisis by US sanctions earlier this year.
  • Italy’s deficit expanding budget plans — and their incompatibility with the European Commission’s wishes — may be one of the biggest talking points in the capital markets, but Spain also intends to loosen its deficit in the coming years. While fiscal stimulus after years of austerity should be welcome — so long as it’s spent on growth boosting policies rather than handouts — Europe’s lawmakers at the national and supranational level must really be lambasted for their timing.
  • CEE
    The decision on Friday by the Turkish constitutional court to release the American pastor Andrew Brunson provided a surge of relief for investors in the beleaguered nation, although most of the tightening in debt spreads happened in advance.
  • The People’s Republic of China, acting through its Ministry of Finance (MoF), priced a $3bn return to the international bond market, pushing out its maturity profile to 30 years. But a weaker backdrop meant that the order book was not as strong as its dollar trade last year.
  • The Ministry of Finance (MoF) second offshore RMB (CNH) auction in 2018 raised Rmb5bn ($720m) on Wednesday. Despite recent RMB depreciation, the demand for CNH bonds remains, albeit in modest amounts.
  • Rating: A2/A+/A+