Euros in vogue for emerging market SSAs
* Top credits raise funds in currency
* Low coupons attract issuers
* Basis swap unattractive, however
By Sudip Roy
LONDON, Feb 26 (IFR) - Top-notch issuers from the emerging markets are targeting the euro market as they seek to lock in low coupons and diversify their investor bases.
Peru joined the growing crowd on Tuesday with its second deal in the currency in less than six months. It became the fourth Latin American borrower in the currency this year, following Chile, Mexico and Andean Development Bank, CAF.
Korean agency Kexim, meanwhile, announced a mandate for a new transaction. Also, Singapore investment company Temasek made its debut in the currency this week, though with Triple-A ratings it's in a different category entirely.
Bankers say more deals are likely, though caution that only the best-quality issuers have access. In addition, the economics of the trade may not make sense for all.
Peru, for example, paid up to issue its 1bn 3.75% 14-year deal compared with the dollar market, but bankers said the sovereign is likely to be less sensitive as it will keep the proceeds in the single currency. Continuación...