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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CAPITAL GOODS
- We previously bulleted on OCI’s announced disposal of two major operations: Fertiglobe to ADNOC and Iowa Fertilizer Co. to Koch which will see cash proceeds in excess of USD 6bn.
- Their equity is +4% today, seemingly on a recommendation upgrade at Berenberg – BBG notes that Berenberg see FY23 net cash at USD 4.6bn – though we also note Qube Research’s short position in the stock has increased to 1.03% (total shorts visible on SPOS are >1.5% of the outstanding with Citadel also short the stock).
- Their sole EUR line is a secured 2025 bond which had seen strong performance in the wake of the announced deals but has reversed much of the move this year.
- The line is streaming with an OAS close to 11bps tighter today - we note that the USD 4.6bn in cash seen by Berenberg is a significant increase from the USD 1.7bn reported at FY22 and is credit positive over the ST. However the disposals could see EBITDA fall by up to 60% so the longer-term picture is less clear.
- OCI reports earnings on 14 February.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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