That loan, with a one-year maturity, was
provided by Citibank, MUFG, First Abu
Dhabi Bank, HSBC, Mizuho, Natixis,
Sumitomo Mitsui Banking Corporation and
Standard Chartered.
“Almost” the same group of banks would
be involved in the planned bond issue, said
one of the sources directly involved in the
talks.
Should market conditions not improve
the debt sale could be delayed to September,
said the sources.
4HEûLASTûSIGNIlCANTûINTERNATIONALûBONDû
sale in the Gulf was a US$500m bond by
Qatar’s Commercial Bank in May.
Since then, potential issuers in the region
have held their plans because of market
volatility and the price premium they would
have to pay to attract demand.
The Saudi Electricity deal could replace
the total amount of the bridge loan,
ALTHOUGHûTHEûlNALûSIZEûWILLûALSOûDEPENDûONû
pricing terms, said the sources.
As part of wider reforms in the Saudi
energy sector, Saudi Arabia plans to
restructure the utility splitting it into four
SEPARATEûUNITSûTOûIMPROVEûITSûEFlCIENCY
AMERICAS
ARGENTINA
YPF READIES BOND FOR ELECTRICITY
UNIT
/ILûlRMûYPF has asked banks to send in
underwriting proposals on a possible bond
issue for its electricity unit, a source told
IFR.
4HEûBONDûISSUE ûlRSTûREPORTEDûBYû
Bloomberg earlier this month, will be at
LEASTû53MûINûSIZEûANDûWILLûBEûTHEûlRSTû
dollar offering from the company’s
electricity generation unit.
In February, the company announced that
GE had paid US$276m for a 24.99% stake in
the unit, whose name will soon be changed
FROMû90&û%NERGIAû%LECTRICAûTOû90&û,UZ
YPFs’ chairman Miguel Gutierrez said
earlier this year that the company could
eventually be listed on the local stock
exchange, and would invest US$1bn
through to 2020, according to Reuters.
Any deal comes at a tougher time for
,ATINû!MERICANûISSUANCE ûESPECIALLYûCREDITSû
from Argentina, which hasn’t seen any
cross-border bonds since utility
Transportadora de Gas del Sur tapped the
market in April.
Markets are still waiting to see if the
government can successfully implement a
lSCALûADJUSTMENTûPLANûAFTERûRECEIVINGûAû
US$50bn support package from the
International Monetary Fund.
YPF’s 6.95% 2027s, which the company
tapped in December at 106.25, are now
trading at 86.90, according to MarketAxess
data.
The sovereign’s bonds were also under
PRESSUREûLASTûWEEKûAFTERû!RGENTINEûINmATIONû
jumped to a higher-than-expected 3.7% in
*UNE ûBRINGINGû
MONTHûINmATIONûTOû
“YPF might move quickly, but I don’t
know how quickly they can move if the
Argentina sovereign is backing up [like it
has],” said the source.ARUBA
ARUBA PREPS PRIVATE PLACEMENTARUBA held an investor call last Monday for a
potential sovereign bond offering, a source
told IFR.
The deal, which is being sold as a private
placement, could be priced as soon as this
week, with the sovereign contemplating a
tenor of between 10 to 12 years.
Aruba is rated BBB+/BBB- by S&P and
Fitch, both with negative outlooks.
S&P warned last month of a worsening
debt burden after several years of poor GDP
PERFORMANCEûANDûlSCALûDElCITS
The rating agency reckons net
government debt is likely to exceed 26% of
GDP this year, up from 17% in 2013 and only
7% in 2011.
Aruba hasn’t been in the public bond
markets since 2012 when it was rated A-/
BBB and priced an 11-year bond at par to
yield 4.625%, according to IFR data.
That bond has been trading at around
101.75/102.45 or 4.25%/4.09% on a yield
basis, according to one bank.
In a report released in May, Fitch said that
US$187m in external borrowing was
approved earlier this year as the island looks
TOûRElNANCEûAûMATURITYûFALLINGûDUEûINû
August.
,ASTûYEARûITûlNANCEDûITSELFûEXCLUSIVELYûINû
the domestic market at an average
borrowing cost of 4.21% and average tenor
of 10 years, Fitch said.
4HEûlNANCEûDEPARTMENTûAGREEDûWITHû
investors in December to extend repayment
ONûAûMû!RUBANûmORINûBONDûAFTERûHAVINGû
done the same on two loans, it said.
The rating agency noted that Aruba has
“an impeccable repayment record” and its
membership of the Kingdom of the
Netherlands has given it access to
development funds and emergency
ASSISTANCEûINûTHEûEVENTûOFûlNANCIALûSTRESS
Credit Suisse and CIBC are leads on the new
bond.BARBADOS
SOVEREIGN SEEN OFFERING
‘BRADY-STYLE’ RESTRUCTURINGBARBADOS will seek to offer both discount and
par solutions through a debt exchange that
will be launched once it reaches a consensus
with creditors, the government said last
week.
In a statement released last Tuesday, the
GOVERNMENTûSAIDûTHATûITSûlSCALûADJUSTMENTû
plan and debt restructuring scheme “will
REQUIREûSACRIlCESûFROMûALLûSTAKEHOLDERSv
It indicated it would try to accommodate
creditors who have a preference for
preserving the value of the principal in their
debt holdings.EMERGING MARKETS AMERICASEXOTIC DEBT PRICES: 19/7/2018
Bid Offer
Americas
Cuba (€) 19.00 20.00
Cuba (¥) 18.00 20.00
Guyana/PD–trade 80.00 90.00
Honduras trade 30.00 40.00
Nicaragua/Loans 16.00 19.00
Suriname trade 10.00 12.00
Africa
Angola 99.00 100.00
Benin 10.00 15.00
Burkina-Faso 8.00 10.00
Cameroon trade 22.00 32.00
Cape Verde trade 75.00 85.00
Central African Rep trade 0.50 1.50
Congo/trade 25.00 30.00
Congo (Dem Rep) 3.75 6.75
Cote d’Ivoire 101.25 103.25
Equatorial Guinea trade 85.00 90.00
Ethiopia 2.00 4.00
Gabon PD-Trade 70.00 78.00
Ghana 88.00 92.00
Guinea-Bissau trade 7.00 10.00
Guinea 8.00 13.00
Kenya trade 45.00 55.00
Liberia PD trade 9.00 12.00
Madagascar (trade) 27.00 34.00
Mali PD trade 2.00 6.00
Mozambique (trade) 6.00 12.00
Senegal 24.00 26.00
Sierra Leone PD-trade 1.00 5.00
Tanzania 12.00 16.00
Uganda trade 16.00 18.00
Zambia PD-trade 10.00 20.00
Asia
Bangladesh 70.00 80.00
Cambodia trade 6.00 12.00
Mongolia 27.00 38.00
Myanmar trade 27.00 32.00
Nepal trade 13.00 16.00
North Korea/Loans 0.50 2.00
Papua New Guinea 85.00 95.00
Vietnam 99.00 99.50
Source: Wesbruin Capital