Citi

Iceland's Arion Banki is to test the outer limits of investors’ growing receptiveness to peripheral European credits. The bank, carved out of the failed Kaupthing, is seeking to launch the first euro bond from an Icelandic financial institution since the credit crisis, writes Graham Bippart.

As if international sukuk were not already rare enough with only six dollar issuers so far in 2014, this week brought an even more unusual sighting — a deal that didn’t have an outrageously oversubscribed order book. Turkiye Finans can thank Damac Real Estate Development’s aggressive handling of investors for that, and so may the rest of the sukuk market.

The first wave of the big investment banks reported first quarter numbers this week, showing that the promised dive in fixed income trading revenues was no idle warning, writes Owen Sanderson. JP Morgan, Citigroup, Bank of America Merrill Lynch and Credit Suisse all reported first quarter FICC or fixed income numbers down between 15% and 21%, as trading volumes and volatility slumped.

Turkiye Finans has led the return of Turkish participation bank issuers to the sukuk market after nearly a year of absence, achieving a strong result this week that leads on the deal hailed as a door-opener for its peers.

Industrial Bank of Korea priced its $300m global depositary receipt offering on Friday, almost a week ahead of schedule, with reverse enquiries sufficient to cover the trade.

Turkiye Finans navigated challenging markets on Tuesday to price its $500m five year sukuk inside guidance at 5.375%. After what one investor termed a “sluggish” start, the deal achieved a $1.4bn order book and rallied from par on the break to 100.125/100.375.

Industrial and Commercial Bank of China priced a Rmb2.5bn ($405m) dual tranche bond on Tuesday night, with investors showing a strong preference for the two year tranche over the five year.

China Citic Bank International last week printed the inaugural dollar Basel III compliant tier one bond from an Asian issuer. The bond was met with strong demand in the secondary market even though the deal had been priced far tighter than where guidance had been set, thanks to the strong order book. However, analysts cautioned about using the transaction as a benchmark.

State Grid Corp of China will meet with investors next week, as it looks to make a return to the dollar market following its last deal, a $2bn triple trancher in May 2013.

Korean technology and pharmaceutical company Hanwha Chemical started meeting investors for a global depository receipt trade of up to $395m, hot on the heels of Industrial Bank of Korea.

Technology firm Tencent has been on a bond investor roadshow after putting in place a $5bn GMTN programme.

MTN desks are taking part in a fierce battle of east versus west. They aren’t talking about schools of philosophy, but something more important— where in London to live and more importantly what that says about their age.