Friday 4 October 2019

Who will buy #Lebanon's Eurobond? Not us, say foreign fund managers - Reuters

Who will buy Lebanon's Eurobond? Not us, say foreign fund managers - Reuters:

Lebanon may need support from loyal local banks or even friendly Gulf states to buy a new Eurobond as foreign investors look set to shun the sale, citing the country’s long list of troubles.

A Eurobond of around $2 billion is being prepared for sale this month, with cash raised earmarked for refinancing maturing debts and shoring up Lebanon’s shaky public finances.

But international appetite appears muted, with fund managers wary of putting money into one of the world’s most indebted countries as it grapples with a multitude of national and geopolitical concerns.

“I wouldn’t touch it with a very large stick,” said Aberdeen Standard portfolio manager Viktor Szabo. “It looks like they are getting closer and closer to an implosion.”

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