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‘Very normal market’ despite ongoing war and volatility to support another wave of new issues
Bankers say the ambition to price the first SSA bond through US Treasuries has faded as recent five year deals stall and barely perform in secondary
Books on the dollar deal opened just hours after Iran attacked the country
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Sri Lanka had to pay up to get its second dollar bond of the year across the line this week, but the money left on the table was more than worth it as the sovereign ended up raising $1.5bn, a record for the country.
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Lebanon was the only CEEMEA name to step into the market post US Federal Reserve meeting on Thursday. Debt bankers involved in the triple tranche trade said domestic demand would cushion the transaction against any broader bearishness.
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Italy sold debt with a negative yield for the second day in a row on Wednesday, as it prepares for a sale of longer term bonds amid strong speculation that the European Central Bank will expand quantitative easing in December.
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SSA borrowers this week provided investors with a strong line up of innovative products. A new standard was set in SRI bonds, Cyprus raised €1bn via an innovative switch offer, Italy sold two year debt at a negative yield and British Columbia is lining up its debt Panda bond.
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The Democratic Socialist Republic of Sri Lanka has tapped the dollar bond market for the second time this year with a $1.5bn transaction. Even though the sovereign had to pay up more than in its May outing, it ended up executing its largest ever bond.
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Republic of Cyprus completed a rare combined syndication and switch offer on Tuesday with 40% of the new issue going to existing bond holders.