Daily Brief Credit: Long 9-Yr Sustainable Bond – Buy from 6.375% and more

• The Emirate of Sharjah (Sharjah) is looking to issue a Long 9-year (November 2032 maturity) Sustainable Bond during today’s business.
• Initial pricing has just been announced at UST10+310bps (~6.85%).
• Based on the current Sharjah sovereign Eurobond curve (SHJGOV), we see fair value (FV) for the new Long 9-year (2032) notes in the “low-to-mid 6.0% area”, given that the existing Sharjah (SHJGOV) 3.625% 2033s are currently yielding 6.2%, while the other two Eurobonds on the curve (the SHJGOV 4.0% 2050 and SHJGOV 4.375% 2051) are currently yielding 6.92% and 6.99%, respectively, at the long end.

• Tupras is Turkey’s largest refiner in Turkey supplying roughly 55% of Turkey’s petroleum product needs and 57% of Turkey’s storage capacity. The refineries produce a full range of refined petroleum products including gasoline
• Company is owned 53% by KOC, the largest private conglomerate in Turkey that accounts for an estimated 7% of the country’s GDP.
• Tupras produced a stellar set of 4Q 2022 results reflecting significant margin improvement; Revenue and EBITDA were up 104% and 212% over 4Q 2021 respectively. We maintain our buy recommendation

• Barclays PLC (Barclays; “the bank”) was established in 1690 and is headquartered in London. The bank has a strong presence in the UK.
• The bank has two principal business segments – Barclays UK and Barclays International. Barclays international is split into corporate and investment banking (CIB) and consumer, cards and payments (CCP).
• The bank has a global presence, with a focus on the UK, EU and the US.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

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