Page 64 - TURKRptSept19

Turkish conglomerate Yildirim Group’s Eti Krom, Turkey’s largest producer of chrome ore and also a manufacturer of high-quality high- carbon ferrochrome, has hired JPMorgan to issue $250mn worth of sukuk bonds later this year, CFO of the company Evren Ozturk told Bloomberg on August 1. The planned issue will be the first USD-denominated sukuk sale by Eti Krom. The paper will have high yields with Middle Eastern investors targeted, according to Ozturk. In March, Eti Krom received regulatory approval from the SPK to issue up to $250mn worth of tradable income-based lease certificates abroad via state-owned Islamic lender Vakif Katilim’s Katilim Varlik Kiralama. Yildirim Group is also the owner of Vargon Alloys AB, one of the oldest ferrochrome plants in Sweden and it is the world’s largest hard lumpy chrome ore producer as well as the world’s second largest high-quality high-carbon ferrochrome producer. In February, the Turkish Treasury sold $2bn worth of 3-year lease certificates (sukuk) with a yield to the investor of 5.80%.
“Powell reaffirms dovish stance—but if stronger U.S. data derail cuts, could a bond market selloff be on the horizon?... Over 17% of the EM USD corporate bond universe (ex-financials) have credit ratings on “negative outlook”,” the IIF said on July 10 in its Weekly Insight note entitled “Conditional optimism”.
Negative-yielding debt has surged from some $13 trillion in June to over $15 trillion currently as trade tensions bite, the IIF said on August 8 in a report entitled “More Than A Trade War”.
CEE monthly bond wrap: Summer doldrums afflict Russian bond issue, but CE raises large amounts. The emerging markets (EM) bond markets are
64 TURKEY Country Report September 2019 www.intellinews.com