Kuwait two-trancher shines in trading; investors watch weather, Fed; Lebanon picks bookrunners

By Christine Van Dusen

Atlanta, March 14 – Kuwait’s debut issue – $8 billion of tranches due in 2022 and 2027 – was the star of the show on Tuesday, experiencing strong demand amid a resilient tone while the Federal Reserve began its meeting and a snowstorm hit the northeastern United States.

“A bad omen for EM credit? It doesn’t seem so, with EM markets having remained remarkably resilient in face of the expected 25-basis points rate hike, the recent rates sell-off and dollar strengthening against EM currencies, as well as the recent drop for [oil prices] below the $50-per-barrel mark,” a London-based analyst said.

Kuwait’s new issue was the beneficiary of the positive mood among emerging markets investors. The $3.5 billion 2¾% notes due 2022 were seen at 99.55 bid, 99.63 offered Tuesday morning. The $4.5 billion 3½% notes due 2027 were spotted at 99.40 bid, 99.45 offered.

The sovereign is not expected to be a frequent issuer, “given its humongous net foreign assets position from which it can draw down,” the analyst said. “With Kuwait now having completed the [Gulf region] puzzle in international debt markets, we are awaiting for the return of Lebanon.”

Lebanon has mandated four bookrunners – Barclays, Byblos Bank, JPMorgan and Societe Generale CIB – to lead a dollar-denominated and Regulation S transaction, which could include tranches of bonds due in 10, 15 and 20 years.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.