IFR 03.7.2020

EUROPE/AFRICA

NIGERIA

DMO CALLS FOR EUROBOND

SUBMISSIONS

NIGERIA@SûDEBTûMANAGEMENTûOFlCEûHASûCALLEDû

for submissions from banks to work on a

possible Eurobond issue of up to US$3.3bn

in 2020.

.IGERIASûEXTERNALûBORROWINGûPLANSû

comprise US$2.8bn-equivalent to partly

lNANCEûTHEûDElCITûANDû53MûTOûRElNANCEû

its US$500m 6.75% January 2021 bond issue.

The sovereign (B2/B/B+) was put on a

negative outlook by S&P at the end of

&EBRUARYûDUEûTOûFALLINGûFOREIGNûEXCHANGEû

reserves.

The rating agency said the late passing of

the budget in 2019 had led to government

funding pressures, which in turn resulted in

INCREASEDûlNANCINGûFROMûTHEûCENTRALûBANKû

through overdraft facilities.

Nigeria is also on a negative outlook at

Moody’s and Fitch.

In late 2018, the sovereign priced a

US$1.12bn November 2025 note tranche at

7.625%, a US$1bn January 2031 bond

offering at 8.75% and a US$750m January

2049 tranche at 9.25%.

The 2025s are bid at 5.65%, according to

Tradeweb, the 2031s at 7.70% and the 2049s

at 8.39%.

RUSSIA

RUSSIAN RAILWAYS STEAMS INTO

GREEN SWISS TERRITORY

RUSSIAN RAILWAYSûBROUGHTûTHEûlRSTû3WISSû

franc-denominated green bond offering

from the CEEMEA region, taking advantage

of the huge rally in rates.

The state-owned company achieved the

lowest coupon by a Russian issuer in any

currency.

Russian Railways (Baa2/BBB-/BBB) had met

investors two weeks ago but decided to wait

for some of the coronavirus-inspired

volatility to wane before going ahead with

its deal.

Books opened on Thursday at 160bp-

BPûOVERûSWAPSûFORûAûSIX

YEARûBONDû,EADSû

then priced a SFr250m note at the tight end,

equivalent to Swiss government bonds plus

176bp, The par priced bonds have a coupon

of 0.84%.

4HEûlNALûLEVELûWASûBROADLYûINûLINEûWITHûITSû

Swiss franc curve, and tighter than its dollar

and euro curves.

Although smaller than normal for Russian

bonds in the franc, which generally hit the

SFr500m mark, leads were touting the deal

as a success given the circumstances.

Asset managers, normally big buyers of an

intermediate maturity investment-grade

deal with a near 1% yield, were less

enthusiastic than usual as they positioned

THEMSELVESûFORûSOMEûHEFTYûOUTmOWSû

More than 45 investors took part, the

majority Swiss, led by banks and private

banks. They took 47%, followed by asset

managers with 32%, while insurers and

pension funds got 22%.

This was Russian Railways’ second green

bond following a €500m May 2027 deal last

year. The company also has a mandate

outstanding for a green Eurorouble but that

deal has been put on the backburner

because of market volatility.

JP Morgan and UBS were green bond

structuring agents and bookrunners, joined

by VTB Capital as lead and bookrunner.

REGIONAL

BALTIC COVERED PLAN SCORES EARLY

SUCCESS WITH LUMINOR BOW

A project to establish a pan-Baltic covered

bond market passed a crucial early test with

a three times subscribed €500m debut from

Estonia’s LUMINOR BANK on Wednesday.

After a week without supply,

Commerzbank showed the covered bond

market was open for business with a well-

received €1.25bn 10-year Pfandbrief on

Tuesday.

But Luminor’s debut deal was a more

challenging project, bankers said, and being

THEûlRSTûCOVEREDûBONDûFROMûTHEû"ALTICSûHADû

WIDEûSIGNIlCANCEûFORûTHEûDEVELOPMENTûOFûTHEû

region’s nascent covered bond market.

Following a European roadshow, which

ENDEDûONû-ONDAYûTHEûõMûNO

GROWûlVE

year Aa1 rated deal was marketed at

mid-swaps plus 30bp area on Wednesday via

leads Citigroup, LBBW, Luminor, Nordea and

UniCredit.

The spread was set at 25bp on more than

€1.5bn of demand.

“We hoped for a more established name

TOûCOMEûlRSTûûANDûWEûGOTûPOSITIVEû

60 International Financing Review March 7 2020

ALL INTL EMERGING MARKETS BONDS

BOOKRUNNERS: 1/1/2020 TO DATE

Europe/Africa

Managing No of Total Share

bank or group issues US$(m) (%)

Excluding equity-related debt.

Source: Refinitiv SDC code: L2

1 JP Morgan 11 3,894.76 17.0

2 Citigroup 5 2,195.74 9.6

3 SG 4 1,798.35 7.8

4 BNP Paribas 5 1,738.07 7.6

5 Deutsche Bank 3 1,737.76 7.6

6 UniCredit 3 1,607.91 7.0

7 Morgan Stanley 2 1,345.85 5.9

8 Raiffeisen Bank Intl 3 1,250.17 5.4

9 Indl & Comm Bk China 4 1,160.74 5.1

10 Gazprombank 3 793.65 3.5

Total 18 22,958.10

ALL INTL EMERGING MARKETS BONDS

BOOKRUNNERS: 1/1/2020 TO DATE

Middle East

Managing No of Total Share

bank or group issues US$(m) (%)

Excluding equity-related debt.

Source: Refinitiv SDC code: L5

1 Standard Chartered 10 5,186.61 25.0

2 Citigroup 8 3,246.05 15.6

3 Morgan Stanley 2 1,833.06 8.8

4 HSBC 6 1,096.43 5.3

5 BofA 1 982.04 4.7

6 Goldman Sachs 1 982.04 4.7

7 Credit Agricole 6 743.36 3.6

8 First Abu Dhabi 4 579.21 2.8

9 Credit Suisse 1 461.02 2.2

10 Nomura 4 384.03 1.9

Total 35 20,753.83

INTERNATIONAL ISLAMIC FINANCE DEBT

BOOKRUNNERS: 1/1/2020 TO DATE

Managing No of Total Share

bank or group issues US$(m) (%)

Excluding equity-related debt.

Source: Refinitiv SDC code: J27

1 Standard Chartered 8 1,544.12 22.3

2 HSBC 4 751.63 10.9

3 First Abu Dhabi 3 438.82 6.3

4 Islamic Dev Bank 3 424.54 6.1

5 Citigroup 3 412.44 6.0

6 Dubai Islamic Bank 3 385.34 5.6

7 Riyadh Bank 1 300.00 4.3

8 JP Morgan 1 300.00 4.3

9 Landesbanken 1 285.71 4.1

10 Natixis 1 285.71 4.1

Total 9 6,925.31

ALL INTL EMERGING MARKETS BONDS

BOOKRUNNERS: 1/1/2020 TO DATE

Latin America

Managing No of Total Share

bank or group issues US$(m) (%)

Excluding equity-related debt.

Source: Refinitiv SDC code: L3

1 JP Morgan 16 4,437.36 11.0

2 Deutsche Bank 5 3,600.29 8.9

3 BNP Paribas 7 3,552.17 8.8

4 Goldman Sachs 13 3,294.16 8.2

5 BofA 15 2,901.09 7.2

6 BBVA 6 2,335.53 5.8

7 Scotiabank 9 2,220.85 5.5

8 Santander 9 2,054.72 5.1

9 Citigroup 7 1,997.18 5.0

10 Itau Unibanco 8 1,668.02 4.1

Total 45 40,269.21

8 IFR Emerging 2323 p 55 - 62 .indd 60 06 / 03 / 2020 19 : 04 : 34