Dec 29 (Reuters) - After all but drying up in the last few
months, Eurobond issues from emerging economies are expected to
resume next year with Poland and Slovenia among those with plans
to tap international bond markets.
Secondary market debt spreads swelled to their widest levels
in nearly six years after the mid-September collapse of Wall
Street giant Lehman Brothers sent global capital markets into a
tailspin, scuttling the fund-raising plans of most borrowers.
Turkey was one of the last emerging sovereign borrowers to
come to the market this year in Europe, issuing a $1.5 billion
10-year bond early September, although Mexico, rated investment
grade, issued a $2 billion 10-year bond earlier this month.
Issuance next year is likely to be modest as falling
domestic exchange rates and potentially stringent policies
required in International Monetary Fund (IMF) packages will
hamper the debt plans of many emerging economies.
Investment grade euro zone members in central Europe are
seen most likely to issue bonds in the first half of next year.
The following is a summary of proposed international bonds
from sovereign and quasi-sovereign borrowers in central and
eastern Europe, Africa and the Middle East.
(OFFICIAL) indicates confirmed by borrower.
CENTRAL, EASTERN EUROPE
--------------------- ALBANIA ------------------------
ALBANIA - Albania said on Nov. 7 it would postpone plans to
issue a debut Eurobond for 200-300 million euros because the
current market turmoil would have made it too costly. But the
country said it would tap the markets as soon as they stabilise.
(OFFICIAL)
--------------------- AZERBAIJAN -----------------------
AZERBAIJAN - Azerbaijan in Nov. 2007 postponed a roadshow
for a planned $500 million debut Eurobond to 2008 due to
unfavourable market conditions. Citi and Deutsche Bank had been
advising on the issue. (OFFICIAL)
------------------- CZECH REPUBLIC ----------------------
CZECH REPUBLIC - The Czech Republic said on Dec. 1 that it
plans to tap foreign debt markets for up to $3.7 billion next
year, representing about half of its 2009 requirements. The
Czech Republic sold a larger than expected 2 billion euro
Eurobond on June 3. (OFFICIAL)
---------------------- LITHUANIA -------------------------
LITHUANIA - Lithuania's prime minister said on Dec 29 that
it still wanted to raise a Eurobond, after cancelling a 400
million euro issue in 2008, but would have to wait until the
second half of next year for market conditions to improve.
Lithuanian raised 600 million litas ($249.2 million) from banks
in December.
--------------------- POLAND -----------------------------
POLAND - Poland may sell at least 1 billion euros worth of
bonds in the first quarter of 2009 and may also consider placing
bonds on the Swiss franc and Japanese yen markets, a financial
ministry official told Reuters on Dec. 2 (OFFICIAL)
--------------------- RUSSIA ---------------------------
RZhD - Russian state railway RZhD said on Nov. 11 it would
not go ahead with plans for a Eurobond issue of up to $4 billion
until the second half of 2009. (OFFICIAL)RZhd was looking to
raise a syndicated loan worth $500 million-$1 billion, banking
sources said on Nov 18.
---------------------- SLOVAKIA ----------------------------
SLOVAKIA - Slovakia is planning a Eurobond worth 1-1.5
billion euros in the first quarter and a second similar bond in
the autumn if conditions are favourable, the head of the
country's debt agency said on Nov 19. The agency said it would
be satisfied if it managed to sell a Eurobond with a five-year
maturity. (OFFICIAL)
--------------------- SLOVENIA -----------------------------
SLOVENIA - Slovenia has picked Societe Generale, JPMorgan
and UniCredit Banka to manage a benchmark Eurobond to launch in
the first quarter of 2009, one of the banks said on Dec 1. The
deal is expected to raise around 1 billion euros.
- Slovenia's finance ministry plans two 1 billion euro
issues in 2009, the daily Finance reported on Dec 24.
--------------------- 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)
--------------------- UKRAINE ------------------------------
UKRAINE - Ukraine plans to issue Eurobonds worth $2.0
billion next year, higher than the $1.67 billion planned for
this year, according to the draft budget submitted on Sept 16.
Before political and financial woes sent the country to the IMF
for a $16.4 billion loan, Ukraine had said it would issue a $500
million Eurobond in September. (OFFICIAL)
AFRICA
---------------------- GHANA -----------------------------
GHANA - Ghana has postponed plans for a $300 million 7-year
bond due to poor global market conditions, one of the banks
arranging the deal said on Sept. 25. (OFFICIAL)
---------------------- KENYA -----------------------------
KENYA - Kenya said on Dec 9 it was exploring ways to plug a
budgetary shortfall this fiscal year other than its planned
debut $500 million Eurobond. (OFFICIAL)
--------------------- NIGERIA ----------------------------
NIGERIA - Nigeria will issue a $500 million 10-year bond to
raise funds for infrastructure costs, the country's finance
ministry said on Sept. 10. (OFFICIAL)
-------------------- TANZANIA ----------------------------
TANZANIA - Tanzania expects a sovereign rating by March 2009
and will aim to issue a Eurobond of at least $500 million next
year, dependent on the market improving, a senior finance
ministry official told Reuters on Oct 8. (OFFICIAL)
-------------------- UGANDA ------------------------------
UGANDA - Uganda will not issue a planned debut Eurobond to
fund infrastructure projects due to the turmoil on the world's
credit markets, the central bank said on Dec 12. (OFFICIAL)
(Compiled by Carolyn Cohn)
