IFR - 07.07.2018

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û4HEûNOTESûAREûBIDûATûûTOûYIELDû
ûACCORDINGûTOû4RADEWEBûPRICES

BENIN

BENIN SOUNDS OUT BANKS FOR DEBUT

BENIN has sounded out banks for a potential
debut bond deal after sending a request for
proposal a few weeks ago, according to
people familiar with the matter.
4IMINGûFORûANYûDEALûREMAINSûUNCERTAINû
and some sources wonder whether the trade
will happen in the foreseeable future, given
the state of emerging markets.
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30ûSAIDûTHATûECONOMICûREFORMSûANDû
increasing public and private investments
SHOULDûSUPPORTû"ENINSûGROWTHûPROSPECTSû
but low per-capita income and large
EXTERNALûANDûlSCALûNEEDSûCONSTRAINûITSûVIEWû
OFû"ENINSûCREDITûQUALITY
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"ENINûREMAINSûHIGHLYûVULNERABLEûTOû
economic developments in Nigeria, its main
trading partner.

h&OREIGNûCURRENCY

DENOMINATEDûDEBTû

CURRENTLYûMAKESûUPûûOFûGENERALû

GOVERNMENTûDEBTûMOSTLYûOWNEDûBYûMULTI

ûANDû

BILATERALûPARTNERS  ûANDûWEûEXPECTûTHISûSHAREûTOû

INCREASEûINûTHEûCOMINGûYEARSvûSAIDû30

h7EûFORECASTûNETûGENERALûGOVERNMENTûDEBTû

WILLûNEARûûOFû'$0ûBYûEND

ûANDûINTERESTû

EXPENDITURESûWILLûAVERAGEûûOFûGENERALû

GOVERNMENTûREVENUESûOVERûTHEûSAMEûPERIODv

LITHUANIA

UTILITY RETURNS IN GREEN BUT EM

PRICED OUT

LIETUVOS ENERGIJAûBECAMEûONLYûTHEûSECONDû

%ASTERNû%UROPEANûCORPORATEûTOûISSUEûINû

NEARLYûTWOûMONTHSûBUTûSADLYûFORûDEDICATEDû

investors there was nothing ‘emerging

MARKETSûABOUTûTHEûDEAL

!BOUTûûOFûTHEûõMû

YEARûNOTEûWASû

PLACEDûWITHû7ESTERNû%UROPEANûACCOUNTSû

WITHûONEûBANKERûCLOSEûTOûTHEûDEALûSAYINGûTHEû

BOOKûhRESEMBLEDûTHATûOFû%$&ûORû)BERDROLAv

4HEûSTATE

OWNEDûUTILITYûBEGANûMARKETINGû

THEû*ULYûûNOTESûATûBPûAREAûOVERûMID

SWAPSû4HATûWASûBPûBACKûOFûTHEû

OUTSTANDINGû*ULYûS

Demand grew to peak at €1.2bn, which

enabled leads to cut pricing to guidance of

PLUSûBP

BPûANDûAûlNALûRANGEûOFû

BP

BP

4HEûBONDSûPRICEDûATûTHEûTIGHTûENDûBPû

BACKûOFûTHEûSûANDûLEAVINGûAûNEWûISSUEû

CONCESSIONûOFûBP

BPû4HEûYIELDûWASû

4HEûDEALûATTRACTEDûDEMANDûTHROUGHOUTû%UROPEû

with German, French and Nordic accounts well

represented, as well as local investors.

4HEûBANKERûSAIDûTHEûDEALûhWASNTûEASYûTOû

PUTûTOGETHERvûGIVENûTHEûFRAGILEûBACKDROPûBUTû

that it had several things going for it.

As a Green bond, the banker said it helped

THEûMARKETINGûTHOUGHûITSûDEBATABLEûHOWû

MUCHûPRICINGûWASûINmUENCEDûBYûTHEûFORMATû

)NûADDITIONûINVESTORSûWEREûATTRACTEDûBYûTHEû

credit itself, which is in a defensive sector

ANDûISûTHEûBIGGESTûUTILITYûINû,ITHUANIA

!NDûDESPITEûBEINGûAûRELATIVELYûSMALLûDEALû

SIZEû,IETUVOSû%NERGIJAû"""ûBYû30    ûPAIDûAû

premium over other similar-rated corporates

INû7ESTERNû%UROPEû&ORûTHEûCOMPANYûITûWASû

WORTHûCOMINGûINTOûAûTRICKYûMARKETûNOWû

RATHERûTHANûANûEVENûMOREûDIFlCULTûONEûLATER

h)NûOURûOPINIONûTHEûLOW

COSTûlNANCINGû

window is still open. However the situation in

THEûMARKETSûWILLûCHANGEûDUEûTOû%#"ûDECISIONûTOû

end quantitative easing and increase interest

RATESvûSAIDû$ARIUSû-AIKSTENASûCHAIRMANûANDû

CHIEFûEXECUTIVEûATû,IETUVOSû%NERGIJA

And he added that despite the less than

favourable conditions, it was still an

attractive cost of funding compared with

LASTûYEARSûDEBUTûISSUEû4HENûITûPRICEDûAû

õMû

YEARûBONDûWITHûAûûCOUPONû4HISû

TIMEûTHEûCOUPONûWASû

More than 100 investors from 22

COUNTRIESûPARTICIPATEDû.EARLYûûOFûTHEû

bond went to asset managers, while

German, Austrian and French accounts were

THEûBIGGESTûBUYERSûBYûGEOGRAPHY

EMERGING MARKETS EMEA

• 
  
  
  
  • 
    
    
    
    • B3 BMI Secs -
      4.20% area,
      4.12% area,
      4.12%
    
    
    • 
      
      
      
      • Aa3/A+/A Itau/HSBC/Scotia -
      
      
      
      
    
    
    
    
  
  
  
  

4.95% area,
4.8%/4.85%,
4.85%

• 
  
  
  
  • Aa3/A+/A Itau/HSBC/Scotia -
  
  
  
  

MS+33 area Flat SFr200m, 12 acs Aa2/AA- UBS AM 87%, PB 10.1%, Tsy 1.6%, Ins 0.8%,
PF 0.5%.
MS+55 area,
MS+45 (+/-2)

5 €1.08bn, 68 acs Aa2/AA-/AA- CA-CIB/CS/CMZ/HSBC/ING Ger 13%, Nordic 13%, UK 12%, Benelux
11%, Switz 9%, Fr 8%, RoEur 6%, ME
10%, Asia/Other 18%. CB/OI 48%, AM/
FM 29%, Ins/PF 12%, Bks/Other 11%.
MS+140 area,
MS+125/130,
MS+120/125

10 ~€1.2bn, 115 acs -/BBB+ BNPP/JPM/SEB Ger/Aus 27%, Fr 26%, Baltics 14%, UK
13%, China/Other 20%. AM 49%, Ins/PF
32%, CB/OI 13%.
3mL+145 area - - -/A/A BAML/BoC/CCBI /DBS/HSBC/ANZ/
BoCom/CCBA/MUFG/WBC

Pricing steps NIP (bp) Book size Ratings Bookrunners Distribution

ALL INTL EMERGING MARKETS BONDS

BOOKRUNNERS: 1/1/2018–30/6/2018

Europe/Africa

Managing No of Total Share

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

1 Citigroup 27 9,135.41 14.9

2 JP Morgan 25 6,424.68 10.5

3 Deutsche Bank 15 5,532.15 9.0

4 VTB Capital 10 4,967.19 8.1

5 HSBC 14 4,021.03 6.6

6 Standard Chartered 8 3,504.97 5.7

7 BNP Paribas 13 2,987.79 4.9

8 SG 13 2,578.20 4.2

9 Goldman Sachs 6 2,538.60 4.1

10 UniCredit 10 1,632.86 2.7

Total 56 61,294.32

Excluding equity-related debt.

Source: Thomson Reuters SDC code: L2