Middle East Bonds

The goal of making the RMB a global commodities currency is not a job for those looking for quick successes. But recent moves from Russia and the Middle East have laid further bricks on the road to glory for China.

London’s emerging market bankers are growing increasingly concerned about whether the Qatari central bank will go ahead with encouraging the country’s lenders into international bond markets, as tensions between the country and its Gulf neighbours continue. Michael Turner reports.

The Kingdom of Bahrain has hired banks for a multi tranche Islamic and conventional trade that at the long end could stretch as far as 30 years, a tenor that some bankers have labelled “ambitious”.

London’s emerging market bankers are growing increasingly concerned with how to deal with expectations that the Qatari central bank will encourage its lenders into international bond markets, as tensions between the country and its Gulf neighbours continue.

The two structured bonds issued by EA Partners that have suffered in secondary markets as a result of the the collapse of Air Berlin have recovered three cash points after the borrower issued a statement to say it anticipated that the next coupon payments will be made.

The Communist Party congress is set to kick off on October 18, the emirate of Sharjah plans the Middle East’s first Panda bond issuance, and Swift data says the renminbi was the fifth most used currency for payments globally in July.

Saudi Arabia considers issuing its first Panda bond, Ministry of Finance (MoF) plans to roll over Rmb600bn ($90.1bn) of debt by issuing special treasury bonds, and the Chinese premier piles pressure on state-owned enterprises (SOEs) directly owned by the State Council to deleverage more rapidly.

Two Eurobonds issued by EA Partners were still stuck trading around 85-87 this week after Air Berlin's insolvency, announced last week, with investors left waiting for more information from the issuer.

Bankers are expecting $5bn-$7bn of supply from Gulf corporates in the second half of this year, as funding officials rush to lock in financing before an expected rate rise by the US Federal Reserve in December.

Two Eurobonds issued by EA Partners were still stuck trading around 85-87 on Tuesday after Air Berlin announced its insolvency last week with investors leftwaiting for further announcements from the issuer.

Investors missed a strategic warning from Etihad earlier this year when the company removed the CEO in charge of its $4bn expansion strategy, and were blindsided this week when its partner airline Air Berlin filed for bankruptcy, write Virginia Furness and Aidan Gregory.

“I was confused before I went in, and even more confused when I came out,” was how one EM investor described meeting Etihad and its partners to discuss its now infamous structured notes.