CAPITALûMARKETS ûANûINCREASEûOVERûTHEû
planned target of US$6.5bn for this year.
Turkey has raised US$6bn in international
bonds across three separate transactions in
2018.
“The Turkish sovereign could come to
MARKETûANYûTIMEûTHEYûWANT vûSAIDûAûBANKERû
“They could just raise the remaining
53MûINûONEûGO ûTHEYûCOULDûDOûAû53BNû
ANDûPRE
FUNDûFORûNEXTûYEAR ûORûTHEYûMIGHTû
just push it all into next year. They are very
HARDûTOûPREDICTv
4IMû!SH û%-ûSOVEREIGNûSTRATEGISTûATû
"LUE"AY ûSAIDûONû4HURSDAYûTHATûTHEûINCREASEû
in the borrowing plan was perhaps not
entirely unexpected.
h)NûRECENTûYEARS ûTHEûTREASURYûMIGHTûHAVEû
SETûTHEûTARGETûOFû53BNûORûTHEREABOUTS û
BUTûLASTûYEARûATûLEASTûBORROWEDûSIGNIlCANTLYû
MOREû&8ûLIQUIDITYûISûNOWûATûAûPREMIUM vûHEû
said.
Turkey raised about US$9.7bn-equivalent
in 2017.
“Maybe [this] eases back some of the
negative spin from the [tax] cuts which
raised concerns over the maintenance of
lSCALûPRUDENCE vû!SHûADDED
The government unexpectedly
announced a plan to cut taxes on several
SECTORS ûINCLUDINGûCARS ûWHITEûGOODSûANDû
FURNITURE ûUNTILûTHEûENDûOFûTHEûYEAR û2EUTERSû
REPORTED ûHOURSûAFTERûTHEûCENTRALûBANKû
SHARPLYûRAISEDûITSûINmATIONûFORECASTSûFORûTHISû
YEARûANDûNEXT ûPREDICTINGûAûRATEûOFûûBYû
the end of 2018.
-EANWHILE ûTHEûCOUNTRYûGOTûAûBOOSTûATûTHEû
end of the week after the United States
REMOVEDûTWOûTOPû4URKISHûOFlCIALSûFROMûTHEû
Global Magnitsky Act sanctions list.
Washington imposed sanctions on
Turkish Justice Minister Abdulhamit Gul
and Interior Minister Suleyman Soylu in
August over the imprisonment of American
PASTORû!NDREWû"RUNSONû"RUNSONûWASû
released in October and has since returned
to the United States
UKRAINE
NAFTOGAZ PICKS UP BATON FROM
SOVEREIGN
Ukraine’s NAFTOGAZ is looking to follow its
SOVEREIGNûINTOûTHEûBONDûMARKET ûNAMINGû
Citigroup and Deutsche Bank as leads for a US
dollar bond offering.
One banker away from the trade said that
Naftogaz is staring down the barrel at
DOUBLEûDIGITûPRICINGûFORûITSûPROPOSEDûlVE
YEAR ûGIVENûTHATûINûLATEû/CTOBERûTHEû
sovereign printed a note due February 2024
at 9%.
“There are technicals which could help.
Naftogaz is 100% government-owned and it
ISû%-")
ELIGIBLE vûSAIDûTHEûBANKERûh4HEû
SOVEREIGNûGOTûANûORDERûBOOKûOFû53BN ûSOû
if you can get comfortable around the idea
that the government will support it - to the
extent that it can - then this a government
PROXYûWHICHûPAYSûYOUûMOREû"UTûITSûAû
DIFlCULTûCREDITûSTORYv
.AFTOGAZûISûRATEDû"
ûBYû&ITCH ûWITHûAûSTABLEû
outlook. The natural gas company is
embroiled in a long-running legal dispute
WITHû'AZPROMûOVERûPAYMENTS ûAû
consequence of the broader deterioration in
relations between Russia and Ukraine.
The banker said that the unresolved
nature of the court case has hamstrung
Gazprom’s ability to raise funds from the
INTERNATIONALûBONDûMARKETS ûASû.AFTOGAZû
could make a claim on the proceeds.
(OWEVER ûTHEûDISPUTEûBETWEENûTHEûTWOû
SHOULDNTûBEûANûISSUEûFORû.AFTOGAZ ûADDEDû
THEûBANKER ûEVENûTHOUGHû'AZPROMûHASûMADEû
counter-claims against the Ukrainian
company.
“I don’t see how Gazprom could do a deal
UNTILûTHEûCASEûISûRESOLVED ûANDûTHEYûAREû
CONTESTINGûITûVIGOROUSLY vûHEûSAIDûh.AFTOGAZûISû
SUINGû'AZPROMû'AZPROMûISûCOUNTER
SUING û
but there’s no decision on that yet so Gazprom
CANTûFREEZEûANYTHINGûFROMûTHEIRûSIDEv
Naftogaz will be on the road marketing
THEû!2EGû3ûTRADEûUNTILû.OVEMBERû û
SHORTLYûBEFOREûlNANCIALûNUMBERSûGOûSTALEû!û
banker familiar with the matter said there
would still be enough time to push the deal
through.
“We have a good few days to print after
THEûROADSHOW vûHEûSAID
The company is coming to market after
the Ukrainian government decided in
October to raise household gas prices by
nearly a quarter.
The gas price hike was a long-standing
)-&ûREQUIREMENT ûANDûSHORTLYûAFTERûTHEû
ANNOUNCEMENT ûTHEû)-&ûANNOUNCEDûAûNEWû
US$3.9bn stand-by aid agreement with
Ukraine.MIDDLE EAST
UAE
MUBADALA ROLLS INTO LONGER LINEMUBADALAûEXTENDEDûITSûMATURITYûPROlLEûASûITû
repurchased some of its shorter-dated notes
and placed a new US$800m 10-year bond.
4HEûINVESTMENTûCOMPANY ûINDIRECTLYû
wholly owned by the government of Abu
$HABI ûACCEPTEDûJUSTûOVERû53MûOFûITSû
2021s and 2022s via the tender offer which
was held in conjunction with the new issue.
“The new issue size was always dependent
ONûTHEûTENDER vûSAIDûAûLEADûh-UBADALAûDIDNTû
WANTûNEWûMONEY ûBUTûNORûDIDûITûWANTûANûODDû
DEALûSIZEûORûTOûUNDER
FUNDûITSELFv
The books for the trade went subject at over
US$1.9bn. The lead said the majority of the
bonds went to those who rolled into the new
DEBTûVIAûTHEûTENDER ûWITHûMOSTûOFûTHEûREMAINDERû
going to accounts in the US and the UK.
Pricing for the deal was tightened by 15bp
for a print at 135bp over swaps. The lead
SAIDûTHEûPREMIUMûWASûAROUNDûBP ûWHILEûAû
BANKERûAWAYûTHOUGHTûITûWASûMOREûLIKEûBP û
based on the pre-announcement levels of
Mubadala’s curve.
h,OOKEDûTOûGOûDECENTLYûENOUGH vûSAIDûTHEû
banker away.
BNP Paribas and Citigroup were global
coordinators. They were lead managers and
bookrunners alongside First Abu Dhabi Bank û
Natixis and Standard Chartered.
)NûAûSEPARATEûEXERCISE û-UBADALAû!A!!
AA) also gained the consent of bondholders
to become legal guarantor and obligor of
OUTSTANDINGû)0)#ûNOTES ûFOLLOWINGûTHEû
merger of the two Abu Dhabi entities.
-OODYS û30ûANDû&ITCHûSAIDûTHATûTHEû
operation would have no ratings impact on
Mubadala.EMERGING MARKETS MIDDLE EASTALL INTL EMERGING MARKETS BONDS
BOOKRUNNERS: 1/1/2018 TO DATE
Europe/Africa
Managing No of Total Share
bank or group issues US$(m) (%)
1 Citigroup 36 10,926.06 13.9
2 JP Morgan 32 8,503.33 10.9
3 Deutsche Bank 21 7,060.53 9.0
4 VTB Capital 11 5,157.69 6.6
5 HSBC 15 4,314.49 5.5
6 BNP Paribas 17 4,154.04 5.3
7 Standard Chartered 9 4,004.97 5.1
8 SG 17 3,882.66 5.0
9 Goldman Sachs 9 3,869.31 4.9
10 Barclays 6 2,149.81 2.7
Total 84 78,333.88
Excluding equity-related debt.
Source: Refinitiv SDC code: L2ALL INTL EMERGING MARKETS BONDS
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 Citigroup 213 46,812.81 9.6
2 HSBC 265 39,892.23 8.2
3 JP Morgan 136 30,618.36 6.3
4 Standard Chartered 175 25,682.65 5.2
5 Deutsche Bank 95 23,406.45 4.8
6 BNP Paribas 123 19,033.07 3.9
7 Goldman Sachs 61 15,385.40 3.1
8 BAML 82 14,927.71 3.1
9 Morgan Stanley 76 13,713.82 2.8
10 Bank of China 138 13,371.76 2.7
Total 847 489,257.97
Excluding equity-related debt.Source: Refinitiv SDC code: L1