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Sukuk pipeline builds in CEEMEA to defy eurozone chaos

Although those in the CEEMEA bond market seem to have given up for the summer already, two SSAs — International Finance Facility for Immunisation and the International Finance Corporation — as well as Arab Petroleum Investments Corp have mandated banks for a sukuk.

IFFIm has picked Maybank, National Bank of Abu Dhabi, National Commercial Bank and Standard Chartered for a three year $200m transaction.

The IFC, meanwhile, is in the final stages of formalising the mandate, which will go to Dubai Islamic bank, HSBC, National Bank of Abu Dhabi and Standard Chartered.

Arab Petroleum Investments Corp (Apicorp) has an Aa3 Moody's rating for its new $3bn senior unsecured MTN sukuk programme. The firm has picked Standard Chartered to help it manage its first sukuk.

All three are expected after the summer, but with the Greece referendum looming on Sunday and very little consistency over the direction of negotiations in the meantime, bankers are expecting this week to be a dormant one once again with no new paper printed. Roadshows for Kazakhstan and National Bank of Egypt finished this week though, and bankers hope that there may still be July issuance.

The EM loans market has also slowed down noticeably, with bankers saying this could be the case for several weeks. For the Middle East, this has more to do with the weather and Ramadan than Greece, although some bankers believe borrowers in Central and Eastern Europe could be waiting to see how the Greek debt crisis results before deciding on their funding plans.

Neither the weather nor Greece has deterred bank borrowers in the country’s immediate neighbour, Turkey though. Akbank could complete a novel three year loan of $250m or more this week, having also entered the market last week with its second one year loan of 2015.

Meanwhile, the Turkish unit of Kuwait’s Burgan Bank has obtained a debut $124m equivalent euro/dollar loan with 364 and 367 day tranches paying 110bp and 120bp over Libor/Euribor, with 12 banks taking part. And GarantiBank International, the Amsterdam subsidiary of Turkey’s Garanti, has closed a $260m equivalent one year loan paying an all-in rate of 65bp over Libor/Euribor.

In corporate EM loans, Turkish mobile phone operator Turkcell has said it will guarantee as much as $66m of one year loans by its Ukraine unit Astelit to pay back debt it raised with System Capital Management guarantees. Turkcell said last week it would by SCM’s 45% stake in Astelit for $100m.

Away from Turkey, Cairo based Afreximbank is said to be closing its two year loan of $700m or over imminently. But the bank was originally expected to close the deal by Friday last week.


Francesca Young +44207 779 7313

Steve Gilmore +44207 779 7298

Dan Alderson +44207 779 7311

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