Middle East Bonds

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.

Air Berlin’s move to file for insolvency has caused a 12 cash point sell off in two structured bonds issued by Etihad called EA Partners I and II, but backed by airline partners including both Alitalia and Air Berlin.

Abu Dhabi’s national energy company Taqa is looking to issue a new bond to refinance $500m of debt due in October.

Jordan has sent out a request for proposals for conventional and Islamic financing, adding to a building pipeline of Middle Eastern sovereigns.

Jordan has sent out a request for proposals for conventional and Islamic financing, according to sources.