LONDON, April 8 (Reuters) - Emerging sovereign borrowers,
particularly those with higher ratings, are re-entering the
Eurobond market as spreads narrow.
Secondary market debt spreads swelled to their widest levels
in nearly six years in September 2008, after the collapse of
Wall Street giant Lehman Brothers sent global capital markets
into a tailspin.
Spreads have narrowed since then, from around 900 basis
points over U.S. Treasuries <11EMJ> to 575 bps on Wednesday.
Russian gas export monopoly Gazprom <GAZP.MM> is planning a
$2 billion bond, representing a reopening of the dollar bond
market for emerging market corporates.
However, it remains harder for some weaker credits to enter
the market.
Ukraine said on Wednesday it had no plans to seek financing
on the international bond market this year.
Following is a summary of proposed international bonds from
sovereign and quasi-sovereign borrowers in central and eastern
Europe, the Middle East and Africa, with indications of existing
Eurobond yields, where applicable.
(OFFICIAL) indicates confirmed by borrower.
CENTRAL, EASTERN EUROPE
--------------------- CROATIA ------------------------------
CROATIA - Croatia has picked BNP Paribas, Deutsche and
Unicredit for a euro-denominated benchmark global bond, banking
sources said on April 7.
Croatia's euro-denominated Eurobond due 2011
<HR012612150=RRPS> is trading at a yield of around 7 percent,
compared with around 5.5 percent in late July.
------------------- CZECH REPUBLIC ------------------------
CZECH REPUBLIC - The Czech Republic may go ahead with a
planned Eurobond but only if spreads reflect that the country is
in a better position than other central and eastern European
states, the finance minister said on Feb 25. (OFFICIAL)
The Czech Republic mandated Barclays Capital, Ceska
Sporitelna and Deutsche Bank to lead manage a euro-denominated
bond in January, but the borrower was not happy with the
projected spread of 250 basis points over mid-swaps.
The Czech Republic's euro-denominated Eurobond due 2018
<CZ036880007=RRPS> is trading at a yield of around 5.79 percent,
compared with 5 percent in late July.
---------------------- KAZAKHSTAN ------------------------
BTA - Kazakhstan's biggest bank BTA <BTAS.KZ>, effectively
nationalised in February, said on April 7 it had yet to decide
whether to restructure some of its $11 billion foreign debt.
(OFFICIAL)
---------------------- LITHUANIA -------------------------
LITHUANIA - Lithuania's prime minister said on Dec 29 that
the country still wanted to issue a Eurobond, after cancelling a
400 million euro issue in 2008, but would have to wait until the
second half of 2009 for market conditions to improve. (OFFICIAL)
Lithuania's euro-denominated Eurobond due 2012 is trading at
a yield of 8.674 percent <LT014745980=RRPS>, compared with 5.3
percent in late July.
----------------------- POLAND -----------------------------
POLAND - Poland may issue bonds in yen and Swiss francs in
the first half of 2009, a deputy finance minister told Reuters
on Jan 21. (OFFICIAL)
Poland's euro-denominated bond due 2012 is trading at a
yield of 4.65 percent <PL014423800=RRPS>, compared with 5.2
percent in late July.
--------------------- RUSSIA ---------------------------
RUSSIA - Russia is looking into the possibility of external
borrowing and could in theory enter the market before its
reserve funds are fully used up, a Finance Ministry official
said on March 26. (OFFICIAL)
GAZPROM - Gas export monopoly Gazprom <GAZP.MM> has mandated
Credit Suisse for a $2 billion 10-year bond with three-year put
option and 9.25-9.50 percent coupon, sources said on April 8.
RZhD - Russian state railway RZhD said on Nov. 11 it would
not go ahead with plans for a Eurobond of up to $4 billion until
the second half of 2009. (OFFICIAL)
VEB - Russia's state-controlled VEB bank will issue a $1
billion one-year bond at a yield of Libor plus 1 percent in
April, the first tranche of planned Eurobond issuance, a banking
source said on March 3.
VEB said on Feb 27 it planned to issue Eurobonds totalling
at least $5 billion at a yield of LIBOR plus 1 percent.
(OFFICIAL)
Russia's largest lender Sberbank <SBER03.MM> plans to buy at
least $500 million of the VEB bonds, Sberbank's deputy chief
executive said on March 27.
VEB's Eurobond due 2015 <RU008214492=RRPS> is trading around
2.99 percent, compared with 4.2 percent in late July.
---------------------- SLOVAKIA ----------------------------
SLOVAKIA - The chances of Slovakia issuing a
euro-denominated international bond in 2009 are minimal due to
unfavourable market conditions and strong demand for domestic
debt, but the country may launch a yen-denominated bond this
year, the state debt agency said on Jan 20. (OFFICIAL)
The agency had said in November it wanted to resume issuing
euro-denominated international bonds this year.
--------------------- TURKEY ------------------------------
TURKEY - The Turkish Treasury said on Dec 29 it expected
foreign bond borrowing in 2009 to amount to 5.6 billion lira
($3.7 billion). (OFFICIAL)
Turkey issued a $1 billion 8-year bond on Jan 8 at a spread
of 501.2 basis points over U.S. Treasuries. The bond is now
trading at a spread of 496 bps. <TR040819991=>
--------------------- UKRAINE -----------------------------
UKRAINE - Ukraine has no plans to seek financing on
international markets in 2009, Ukraine's deputy finance minister
said on April 8. (OFFICIAL)
Under the 2009 budget, foreign borrowing, including
Eurobonds and borrowing from other sources, was planned at about
$2 billion. (OFFICIAL)
Ukraine's $1 billion bond due 2016 <UA027605311=RRPS> is
trading at a yield of 22.11 percent, compared with 8.5 percent
in late July.
MIDDLE EAST
--------------------- BAHRAIN -----------------------------
BAHRAIN - Bahrain is finalising a $500 million Islamic bond,
the central bank governor said on March 24. (OFFICIAL)
The deal is to be issued by the end of May, a source said.
--------------------- ISRAEL -----------------------------
ISRAEL - Israel is still considering a euro-denominated
benchmark issue this year, a senior finance ministry official
said on March 19, after Israel sold $1.5 billion of 10-year
bonds. (OFFICIAL)
----------------------- LEBANON -------------------------
LEBANON - Lebanon may issue a Eurobond in 2009 but nothing
is planned yet, the finance minister said on March 17.
(OFFICIAL)
Lebanon completed a debt swap in March for around $2.3
billion of foreign currency debt maturing this year.
AFRICA
------------------------ SOUTH AFRICA --------------------
SOUTH AFRICA - South Africa will borrow more funds from
international markets soon, finance minister Trevor Manuel said
on April 1. South Africa's Treasury has invited lead manager
bids for an international bond to raise $1 billion, a senior
official said on March 27. (OFFICIAL)
South Africa's $1 billion bond due 2012 <836205AG9=> is
trading at 5.671 percent, compared with 5.57 percent in late
July.
(Compiled by Carolyn Cohn)
