LONDON, March 6 (Reuters) - Some emerging sovereign
borrowers, particularly those with higher ratings, have
ventured into the Eurobond markets this year as spreads
stabilise.
But others have made tentative steps and found the
climate too uncertain.
Secondary market debt spreads swelled to their widest
levels in nearly six years in September, after the collapse
of Wall Street giant Lehman Brothers sent global capital
markets into a tailspin and scuttled the fund-raising plans
of most borrowers.
Spreads have narrowed since then, from around 900 basis
points over U.S. Treasuries to around 700 bps on Friday.
Lebanon said on Friday it was exchanging five Eurobonds
maturing this year totalling around $2.3 billion for new or
tap issues [] and Croatia said on March 5 it was
planning a Eurobond. []
Following is a summary of proposed international bonds
from sovereign and quasi-sovereign borrowers in central and
eastern Europe, Africa and the Middle East, with indications
of current Eurobond yields, where applicable.
(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)
--------------------- CROATIA
------------------------------
CROATIA - Croatia plans to pick a bank in mid-March to
lead manage a Eurobond in the second quarter, a finance
ministry source said on March 5. (OFFICIAL) Some local media
speculated the bond could be worth up to 750 million euros.
Croatia's euro-denominated Eurobond due 2011
<HR012612150=RRPS> is trading at a yield of around 7.5
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 5.8
percent, compared with 5 percent in late July.
---------------------- LITHUANIA
-------------------------
LITHUANIA - Lithuania's prime minister said on Dec 29
that the country 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 2009 for market conditions
to improve. (OFFICIAL)
Lithuania's euro-denominated Eurobond due 2012 is
trading at a yield of 10.4 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 4.5 percent <PL014423800=RRPS>, compared with 5.2
percent in late July.
--------------------- RUSSIA ---------------------------
RUSSIA - Russia has made no plans yet to borrow funds in
the international market, Russia's finance minister said on
Feb 3. (OFFICIAL)Comments in December by the deputy finance
minister had prompted speculation of a Russian Eurobond or
exchange of existing debt for a new benchmark.
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)
VEB's Eurobond due 2015 <RU008214492=RRPS> is trading
around 3.1 percent, compared with 4.2 percent in late July.
---------------------- SLOVAKIA
----------------------------
SLOVAKIA - The chances of Slovakia issuing a
euro-denominated 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. The
agency had said in November it wanted to resume issuing
euro-denominated international bonds this year. (OFFICIAL)
--------------------- SLOVENIA
-----------------------------
SLOVENIA - Slovenia's finance ministry plans two 1
billion euro issues in 2009, the finance ministry said on
Jan 5. (OFFICIAL). It launched a 1 billion three-year euro
bond on Jan 28.The yield on the 4.25 percent bond
<SI0002102919=HVBT> has tightened to 3.525 percent.
--------------------- 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 668 bps. <TR040819991=>
--------------------- UKRAINE
------------------------------ UKRAINE - Under the 2009
budget, approved just before the New Year, foreign
borrowing, including Eurobonds and borrowing from other
sources, is planned at about $2 billion. (OFFICIAL)
Ukraine staged a roadshow in June 2008 to raise a $500
million Eurobond, but did not issue the bond. Ukraine's $1
billion bond due 2016 <UA027605311=RRPS> is trading at a
yield of 35 percent, compared with 8.5 percent in late July.
MIDDLE EAST
--------------------- ISRAEL
-----------------------------
ISRAEL - Israel hopes to raise $1 billion with a
euro-denominated bond in 2009 if market conditions improve,
a senior finance ministry official told Reuters on Jan. 7.
(OFFICIAL)
-------------------- LEBANON
------------------------------
LEBANON - Lebanon launched an offer on March 6 to
exchange around $2.3 billion in five Eurobonds due 2009 for
bonds maturing in 2012 and/or 2017.
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 in Sept 2008. (OFFICIAL)
- Ghana's new administration does not intend to default
on repayments of the $750 million Eurobond the country
issued in 2007, the country's transitional finance committee
said on Feb 4. (OFFICIAL)The bond is trading at a yield of
16.5 percent <374422AA1=>, compared with 8.4 percent in late
July.
---------------------- KENYA
-----------------------------
KENYA - Kenya may issue a planned Eurobond totalling
around $500 million in 2009/2010, according to a Treasury
document. The issue was originally planned for early 2008.
(OFFICIAL)
--------------------- NIGERIA
----------------------------
NIGERIA - Nigeria's plans to issue a $500 million
10-year bond are on hold until the economic environment
improves, the finance minister said on March 3. (OFFICIAL)
RIVERS STATE - Rivers State plans an international bond
in 2009 and expects a credit rating by the end of March, the
state's governor told Reuters on Oct 8. (OFFICIAL)
-------------------- TANZANIA
----------------------------
TANZANIA - Tanzania has postponed plans to issue a debut
Eurobond totalling at least $500 million until market
conditions improve, the president said on Jan 2. (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 and Sebastian Tong)
