Bank was considering capital-raising options
in 2018, including a rights issue and an
Islamic bond offering.
A spokeswoman at the bank declined to
comment on the sukuk plans.
In February last year, the bank issued
53BNûOFûlVE
YEARûSUKUKûASûPARTûOFûAû
US$5bn sukuk programme.
$UBAIû)SLAMICû"ANKûISûRATEDû!ûBYû-OODYSû
and A by Fitch.
AMERICAS
ARGENTINA
AYSA READIES REG S-ONLY TRADEAGUA Y SANEAMIENTOS ARGENTINOS has started
MARKETINGûAû53ûDOLLARû2EGû3
ONLYûlVE
YEARû
senior bond.
The company will visit accounts in
London, New York, Boston and Los Angeles
on January 19-24.
AySA is majority-owned by the state
and is the largest water utility company
in Argentina in terms of customer
coverage.
Citigroup, Deutsche Bank and HSBC are the
leads.
MSU ENERGY TAKES TO THE ROADMSU ENERGY is readying roadshows to market
a US dollar senior secured seven-year non-
call four bond.
MSU Energy is a group of companies
involved in the development and operation
of power generation plants in Argentina.
Expected ratings are B3/B. JP Morgan has
been mandated as global coordinator as well
as joint bookrunner along with Citigroup and
Itau BBA.
Roadshows will take place in New York
and London on January 22, Boston and NewYork on January 23 and New York and Los
Angeles on January 24.GENNEIA PLOTS MARKET RETURNPower company GENNEIA has kicked off a
roadshow for a tap of its existing 8.75% 2022
bonds.
The borrower is targeting US$150m but
that can be increased to US$200m,
ACCORDINGûTOûAûLOCALûlLING
Bank of America Merrill Lynch, Citigroup and
Itau BBA AREûTHEûLEADSû2OADSHOWSûWILLûlNISHû
in London on January 22.BRAZIL
SOVEREIGN MAKES EARLY APPEARANCE
WITH 30-YEAR TAPBRAZIL stepped into the market early this
year when it issued a US$1.5bn tap of its
5.625% 2047 last week, getting in ahead of
an uncertain election season.
With the dollar price on the 2047
comfortably above reoffer at 102.125, the
sovereign had its chance to top up a
relatively small bond before further
Treasury volatility potentially closed the
window.
“There is only US$1.5bn outstanding,”
said a banker. “If the US Treasury market
keeps moving, this may be the last chance to
do it.”
At IPTs of 5.80% area, the deal was seem
coming some 30bp wide to secondary levels
of around 5.48%, but leads Citigroup, HSBC
and Morgan Stanley soon closed that gap to
print at 5.60%.
“This is Brazil’s typical MO,” said Sean
Newman, senior portfolio manager at
Invesco. “It doesn’t leave a lot of new issue
CONCESSIONûANDûTYPICALLYûCOMESûmATûTOûTHEû
curve.”
At those levels other investors preferredALL INTL EMERGING MARKETS BONDS
BOOKRUNNERS: 1/1/2018 TO DATE
Latin America
Managing No of Total Share
bank or group issues US$(m) (%)
1 JP Morgan 6 810.45 15.0
2 Santander Global Corp Bnk 3 760.75 14.1
3 Citigroup 2 720.66 13.4
4 BAML 5 718.70 13.3
5 Barclays 1 595.66 11.0
6 BNP Paribas 2 415.43 7.7
7 Morgan Stanley 3 331.76 6.1
8 BBVA 1 248.76 4.6
9 Banco Bradesco 2 170.09 3.2
=9 Banco BTG Pactual 2 170.09 3.2
Total 8 5,397.52
Excluding equity-related debt.
Source: Thomson Reuters SDC code: L3Formosa frolics in the Gulf
MIDDLE EAST Gulf lenders spot opportunity in TaiwanThe top Middle East banks have hit the Formosa
market in size since the start of the year as lenders
lock in low funding costs from an exclusive source
of liquidity that only welcomes the highest-rated
names.
Formosas are sold in Taiwan by foreign issuers
and are denominated in currencies other than
the Taiwanese dollar.
“The levels are typically tighter than what
they would get for a five-year transaction in the
international markets,” said a banker.
“It’s also done on a private placement basis.
That makes it very straightforward to market the
name to investors and only make it public at the
time of pricing. It has less execution risk so that’s
been a big driver behind issuance.”
Qatar National Bank (Aa3/A/A+), First Abu
Dhabi Bank (Aa3/AA-/AA-) and Abu Dhabi
Commercial Bank (A1/A/A+) have raised nearly
US$2bn in Formosas this year as Taiwanese
life insurers throw a wall of money at national
champions.
EMIRATES NBD (A3/-/A+) is set to follow in their
footsteps. Dubai’s largest bank has appointedStandard Chartered and other banks to lead a
potential public debut in the Formosa market.
QNB, FADB, ADCB and Emirates NBD are all
highly rated dominant players in their markets.
That combination appeals to Taiwanese life
insurers looking for solid credits offering duration.
“The appetite declines with ratings, which
means it’s not open for everyone,” said the
banker. “I don’t see it as open yet to the second-
tier names.”
The Gulf lenders have concentrated on
printing 30-year non-call five accreting zero
coupon trades.
Although callable debt is more expensive
to issue than a vanilla bond, borrowers can
monetise the calls by selling options to the
market, reducing their five-year funding costs.
The banker said the flood of issuance has
coincided with technical demand and Chinese
New Year, which falls on February 16.
“There’s nothing too scientific about it,” he
said. “Investors have money to put to work and
they are looking to book returns now.”
Robert HoggALL INTL EMERGING MARKETS BONDS
BOOKRUNNERS: 1/1/2018 TO DATE
Middle East
Managing No of Total Share
bank or group issues US$(m) (%)
1 Citigroup 3 2,422.05 20.3
2 Standard Chartered 2 2,334.08 19.6
3 Sumitomo Mitsui Finl 2 1,760.75 14.8
4 HSBC 1 1,614.08 13.6
5 Deutsche Bank 3 990.72 8.3
6 Goldman Sachs 2 807.96 6.8
7 Morgan Stanley 2 329.43 2.8
8 UBS 1 178.39 1.5
9 TD Securities 1 146.67 1.2
=9 Credit Agricole 1 146.67 1.2
Total 6 11,904.13
Excluding equity-related debt.
Source: Thomson Reuters SDC code: L5