Middle East Bonds

Bahrain reopened its 2021s and 2026s with close to a 50bp concession on Tuesday — evidence of the fact that wider spreads in the Gulf bond market are here to stay.

Middle East banks are dreaming up new funding schemes this year, turning to private placements and the Asian markets as the cost of borrowing in dollars soars on the back of market volatility.

Oman Telecoms (Omantel) is withdrawing a $130m dual currency sukuk it issued on January 27, two sources have told GlobalCapital.

Saudi Arabia will likely issue its long anticipated debut dollar bond in dual sukuk and conventional format, according to bankers in the region.

Middle Eastern banks are casting their funding nets wider in order to counter spiralling costs of funding and dwindling local demand, say bankers in the region.

The head of Oman’s central bank has called for his country's borrowers to embrace capital market funding, with the sovereign widely expected to lead the charge itself with a large bond or sukuk.

The Kingdom of Bahrain is considering a tap of its dual tranche note issued last November in a bid to save its investment grade rating, according to investors in the region.

Middle Eastern banks are casting their funding nets wider in order to counter spiralling costs of funding and dwindling local demand, say bankers in the region.

National Bank of Abu Dhabi has mandated six banks for investor meetings starting February 8.

Reports that Saudi Arabia has offered to cut oil production by up to 5% if Russia matched the cut resulted in a jump in oil prices to $35 a barrel on Thursday. Despite positive momentum in the markets, bankers say Middle Eastern issuers need a more sustained period of stability before venturing to market.

Oman Telecoms (Omantel) sold a $130m-equivalent sukuk via auction in the domestic market on Wednesday. Though the issuer could have achieved tighter pricing in the loan market, it wanted to aid the development of the sukuk market in Oman, said bankers.

With bond issuers dithering this week in the emerging markets, a loan for Qatar snatched attention as the loan market bubbled away.The sovereign has completed and signed a $5.5bn five year loan, most of it held by the top line of banks on the deal.