Middle East spreads widen, but deals emerge; Nigeria’s Seplat to bring smaller deal

By Rebecca Melvin

New York, March 12 – Despite generally wider spreads, new deals emerged in the Middle East region, and a smattering of activity occurred across other regions on Monday as U.S. Treasuries recouped some of their losses sustained on Friday on the heels of the U.S.’s stronger-than-expected February jobs report.

Middle East spreads were marginally wider across the board, including for Majid Al-Futtaim Holding LLC, the Dubai-based real estate developer that announced a proposed new dollar benchmark of perpetual hybrid notes and tender of an older issue of the same.

The new notes received BB+ ratings from both S&P Global Ratings and Fitch Ratings.

Turkey’s Yapi ve Kredi Bankasi AS bank launched $500 million of five-year bonds on Monday despite a ratings downgrade by Moody Investors Service on a raft of Turkish banks. The rating agency’s action followed on the heels of its downgrade of the Republic of Turkey two days earlier.

Meanwhile, the Egypt named banks to manage its planned euro-denominated notes, which have been whispered at $3 billion to $4 billion in size. Deutsche Bank, BNP Paribas, Standard Chartered Bank and Alexbank were mandated to organize the deal.

In Africa, Nigeria’s Seplat Petroleum Development plc talked $300 million to $400 million of five-year notes, which was a smaller offering than the $500 million initially proposed. The deal was talked in the high 9% area.

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