EM suffers with upheaval in Brazil, attacks in Turkey; TSKB still ‘stellar’; Ezdan trades

By Christine Van Dusen

Atlanta, May 13 – Investors were watching Brazil and Turkey on Friday as both dealt with political turmoil and Turkey coped with more terror attacks.

Turkey’s bonds have widened as much as 30 basis points versus its peers, he said.

Against this backdrop, Turkey-based Turkiye Sinai Kalkinma Bankasi’s (TSKB) new deal, a $300 million issue of 4 7/8% green bonds due 2021 that priced at 99.244 to yield mid-swaps plus 387.5 bps, was fairly active in trading on Friday.

After strong performance on Thursday – hitting a high of 100.26 as investors embraced the green bond – TSKB’s notes faded, a trader said.

The notes were seen Friday at 99.55 bid, 99.85 offered.

“Still a stellar trade for the issuer,” he said.

Bonds from Latin America saw a “lackluster” finish on Friday, as the “rout in equities and oil hurts sentiment in the EM credit realm,” a New York-based trader said.

Spreads were wider on the day, with Brazil’s five-year credit default swaps spreads moving to 328 bps from 326 bps and Mexico’s to 167 bps from 165 bps.

Looking to the Middle East, Qatar-based real estate developer Ezdan Holding Group’s new $500 million 4 3/8% notes due 2021 that priced this week at 99.446 to yield 4½%, or mid-swaps plus 333 bps, “seems to have settled down after a wild debut,” he said.

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