Turkey

Lenders to Vakifbank’s Turkish Islamic finance subsidiary got a 90bp reward for financing the smaller specialist financial institution over its parent company, according to bankers close to the transaction.

US President Donald Trump’s decision to reimpose sanctions on Iran has sent Turkey’s bonds, already under pressure from a weakening currency, flying wider.

The strengthening dollar is wreaking havoc for emerging market bond investors as assets in local currencies and dollars alike take a hammering.

The IPOs of two Turkish retailers, Beymen and DeFacto, were cancelled at the end of last week, after failing to attract enough demand to cover the shares on offer. A third IPO, Şok Marketler, was extended to Wednesday May 9. All three were seeking to list in Istanbul.

Shares in Vivo Energy, the African fuel distributor, rose more than 3% on its first day of trading on the London Stock Exchange on Friday, after its £558m IPO attracted substantial demand.

Turkey’s Garanti Bank has wrapped up its springtime loan refinancing, raising $1.4bn-equivalent and continuing the pricing trend seen among peers in recent weeks.

Turk Eximbank raised $500m with its new six year bond on Thursday. While one banker on the deal said there was some buyside reticence to get involved with Turkish risk, meaning that a higher new issue premium was required, another claimed the premium paid was in line with the rest of the market.

Turk Eximbank on Thursday* opened books on a new six year bond following the Central Bank of Turkey’s decision to hike rates by 75bp the day before.

Turkey’s Vakifbank has signed a dual tranche loan totalling $1.3bn-equivalent, in line with its domestic rivals, despite Moody’s taking the axe to the bank’s ratings last month.

Turkish participation bank Albaraka Turk added around $100m to its murabaha loan during syndication after signing the final deal at $318m-equivalent.

Sok Marketler, the Turkish discount grocer, has set the range on its Istanbul IPO, valuing it at Tl6.9bn (1.7bn) to Tl8.3bn ($2.05bn).

Turkish real estate developer Ronesans Gayrimenkul Yatirim has released initial price guidance on its benchmark five year bond, which a rival syndicate has called wide but a lead said was the pick-up investors are demanding over Turkish international corporates.