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Sovereigns

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SSA
Analysts discuss the scope of tightening in Bund swap spreads and the impact on SSA spreads
OATs and OLOs could weaken further versus Bunds while southern European countries and EU continue to paint a positive picture
SSA
Uncertainty looms large as presidential race far from clear and budget negotiations potentially ‘highly challenging’
SSA
Summer in full swing but first two weeks of August not completely off the cards for non-euro deals
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  • Rating: Ba2/BB/BB+
  • Portugal shrugged off a domestic bank crisis this week to harness international appetite for eurozone periphery debt with its first syndication after exiting its bail-out in May. Also the sovereign’s first dollar offering since 2010, the deal was several times oversubscribed despite Banco Espirito Santo suffering volatility in equity and bond markets before the sale.
  • South Africa has picked three banks to lead manage a foreign currency bond while Nigerian duo Helios Towers and First City Monument Bank are on the road ahead of debut dollar deals, promising a healthy pipeline of African supply.
  • The Republic of Indonesia priced its debut euro-denominated bond on Thursday and was met with overwhelming demand from yield hungry investors. But bankers are now in a fierce debate about how much of a concession the borrower had to pay to secure its first euro trade — and whether it was worth it, writes Virginia Furness.
  • Hong Kong's debut sukuk may have moved a step closer to reality, with market sources telling GlobalCapital Asia that banks have been mandated for the deal. At least four of the five banks that have just worked on the UK's £200m sukuk are thought to have been appointed, although no official mandate has been announced.
  • CEE
    Bulgarian government bonds, including its recent Eurobond, this week shrugged off a mini banking crisis that last week spread through a seemingly malicious email and social media campaign. An emergency credit line for the banking sector from the sovereign helped end the panic.