By Mariam Meskin
11.15 AM
Emerging market portfolio managers say that their confidence in buying assets has been restored now that US Treasury yields have stopped racing upwards. But although they say they have cash to splash, some still believe valuations are toppy. “In the last
month, the rates volatility has calmed down a lot,” said one emerging markets portfolio
manager. “Historically, the rise in yields is positive for emerging markets,
but this time it was too fast and too severe. Now what we are seeing is a
promising backdrop for emerging markets commodity prices are
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By Mariam Meskin
11 May 2021
LimakPort, the Turkish international port, entered the debt market on Tuesday, while Turk Eximbank has successfully secured a dollar syndicated loan facility. Turkish issuers are demonstrating resilience, market participants say, amid the heightened levels of domestic and political volatility in the last three months.
LimakPort is
seeking a senior secured amortising 15 year dollar-denominated bond with a
weighted average life of 10 years.
By Tuesday
morning, initial price thoughts were set at 9.5-9.75% area. The deal is set to
price on Tuesday.
The note is
secured against Limak’s cashflows. Bank of
America and UBS are leading the trade,
By Mariam Meskin
11 May 2021
The IMF and Zambia have reached a broad agreement on a reform agenda for Africa’s first sovereign defaulter of the pandemic era. That will serve as a prelude to securing a new credit facility from the Fund and pleased investors, who noted that Zambia s bonds have made gains in recent weeks.
The Zambian authorities announced on Monday that they had reached a broad agreement with the IMF on “the macroeconomic parameters, fiscal targets and policy objectives” required before Zambia is able to secure a new funding package.Progress, they say, has been made on the detail of the policy reform
By Mariam Meskin
10 May 2021
African Export-Import Bank launched a dual tranche dollar bond on Monday morning, with orders exceeding $3bn by midday. Emerging market bank issuers have been especially active in recent month thanks to attractive credit conditions.
Afreximbank, rated Baa1/ /BBB-, is seeking a Reg S/144A senior unsecured dollar bond with tranches of five and 10 years.
Initial price thoughts on Monday morning were set at 220bp area over US Treasuries on the May 2026 tranche and 250bp over on the May 2031 tranche. By the afternoon, guidance
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By Mariam Meskin
10 May 2021
The number of emerging market syndicated loans is in decline for the fourth year in a row, according to Dealogic data. Bankers outlooks for the rest of the year err on the pessimistic side, with the fallout from the pandemic being the main concern.
“I’m not very confident that activity will pick up soon,” said one senior syndicated loans banker at an Asian firm. “At this point last year we were dealing with a lot of
financing requirements around Covid-19, but since then activity has declined
and loans have been repaid.”Since the start of