The only two issuers to venture out into the market are offering super high yields Ecobank and 4 Finance. Ecobank released price guidance on Tuesday for a seven year non-call five bond at high 9%. Books close at 3pm London time on Wednesday for the benchmark note.
Syndicate officials away from the deal said that the timing of the bond was risky after Seven Energy pulled its note last week on the back of EM volatility. Leads on that deal said the suspension of Nigerian oil company Afren's chief executive and chief operating officer for alleged fraud has spooked some investors in the country’s debt, reminding them of the opacity of some institutions.
4Finance is meanwhile offering five year put three notes with IPTs of 11.75% area.
There is a similar lull in emerging market loans activity, with many bankers away and discussion around the Russian sanctions continuing to hold the attention of those that remain.
Despite that, bankers say there are a number of emerging market loans deals on the way and a few are progressing. South Africa’s Standard Bank is in the market with a $375m three-year loan, led by Mizuho, as it looks to refinance debt in smaller size and tighter levels. The bank is said to be replacing $675m of existing debt, at the front of the South African banking sector’s annual round of refinancing.
And in Turkey, Akbank has decided not push tighter on pricing than its previous loan deal — a $1.36bn dual tranche in March paying 90bp over Libor and Euribor — as it leads the second wave of Turkish bank refinancings, closely pursued by Isbank and Yapi Kredi. Akbank will look to place the loan next week, with Bank of America Merrill Lynch coordinating.
Meanwhile, the market may be all but closed for new Russian loans, but aluminium producer Rusal has said that all creditors have finally agreed to let it restructure $5.2bn of loans out of its $10.3bn debt load, by rolling $4.75bn and $400m of pre-export finance facilities together. The agreement avoids a court procedure, which the company said in June might be necessary as some creditors — in particular RBS and Portigon — refused to give their approval at the time. It also comes after Rusal avoided default in July by gaining an extension on a debt repayment until October.
Francesca Young +44207 779 7313
Steve Gilmore +44207 779 7298
Dan Alderson +44207 779 8297
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