Some of the companies and governments in the developing world hardest hit by pandemic shutdowns are racing back to debt markets in the U.S. and Europe, seizing on surging demand that has driven junk-bond yields to record lows.
Among them is Pegasus Hava Tasimaciligi AS, the discount Turkish airline that racked up larger-than-expected losses as the number of passengers fell by more than half last year. On Tuesday, the carrier kicked off a $300 million junk-bond sale to help refinance bank loans, according to a person with knowledge of the matter.
A Colombian airline bankrupted by the travel industry’s collapse may follow suit. And Kenya, which the International Monetary Fund considers at high risk of lapsing into financial distress, is planning to borrow $12.4 billion abroad through next June.