La Rioja advances deal; Country Garden, Entre Rios shelve plans; Turkish banks under pressure

By Christine Van Dusen

Atlanta, Nov. 17 – Argentinian province La Rioja braved the uncertain waters of the markets on Thursday and announced it would issue $200 million of notes, even as province Entre Rios canceled plans for a similar issue.

This came against the backdrop of increasing oil inventories and investor concern about what a Donald Trump presidency will mean for the markets.

“U.S. oil inventory increased with a frightening pace,” according to a report from Schildershoven Finance BV. “Volatility risk has increased in the oil market as, on the one side, overproduction remains high, [while] on the other [side] main producers are speculating about a production cut agreement.”

Meanwhile, banks and investors in Turkey are struggling in the current economic and political climate, according to a report from Commerzbank Corporates & Markets.

The “overwhelming mood” is “a sense of pervasive pessimism,” the report said. “Clients expected weaker [lira] exchange rates, eventual rate hikes from the Central Bank of Turkey and declining growth prospects.”

The lira underperformed when other emerging markets currencies rallied, so it is “foolish to expect [the lira] to outperform when sentiment towards EM sours, as is the case at the moment,” the report said.

In deal-related news, China-based real estate developer Country Garden Holdings Co. Ltd. has canceled plans for dollar-denominated notes due to market conditions, a market source said.

© 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.