Middle East Bonds

Kuwait Projects Company (Kipco) printed the first bond this year from a corporate in central and eastern Europe, the Middle East or Africa on Tuesday. While the solid international book could not prevent some softness in secondaries the next day, the issuer was unaffected by rating action by Moody’s this week.

Israel printed a new 10 year bond and a tap of 2043s on Wednesday with only a small new issue concession and some of the biggest books seen so far this year for a CEEMEA bond.

Israel has tightened price guidance on its 2043s tap and new 10 year bond, both in dollars, in the hope of printing the deal later on Wednesday.

Kuwait Projects Company (Kipco) printed the first CEEMEA corporate of the year on Tuesday but the solid international book could not prevent some softness in secondaries the next day.

KOKS Finance and Dubai Holding are looking to buy back part or all of their dollar notes due 2016 and 2017, respectively.

Kuwait Projects Company (Kipco) was on track to print 2016's first corporate bond from CEEMEA on Tuesday as Turkish conglomerate Koc Holdings also said it would issue a seven year bond.

Kuwait Projects Company (Kipco) will open books on a seven year bond after completing investor meetings on Monday.

The Islamic Development Bank (IsDB) printed on Thursday morning its $1.5bn five year sukuk “well inside” its own curve, according to a syndicate banker on the deal. The profit rate was lower than its last outing despite the spread being much wider.

The Islamic Development Bank has released initial price thoughts of mid- to high- 50bp over mid-swaps for a five year dollar benchmark sukuk, with central banks expected to be the biggest buyers.

Oil prices are central to the economies of the Middle East so the commodity price collapse of the last year has had a big impact. But how bad is the outlook for growth and government finances? Chris Wright assesses the situation.

Falling oil prices, escalating geopolitical tensions and now a slew of ratings downgrades — the Middle East’s sovereign borrowers have a lot to contend with. But strong local demand and appropriate spreads should ensure ample funding is raised this year, writes Virginia Furness.

The fiscal strain of low oil prices in the Middle East has prompted international investors to flee the region. Spreads have blown out but issuers need funding. That means the sukuk market could be about to come to the rescue, writes Virginia Furness.