Middle East Bonds

Etihad Airways and five other airlines in which it owns stakes, printed an innovative $500m structured bond on Wednesday and bumped it up to $700m a day later on the back of a late reverse enquiry.

Etihad Airways has tapped the $500m structured bond it sold on Wednesday for a further $200m. Despite this, the bonds have staying buoyant at around 101.25 bid.

Etihad Airways printed its innovative $500m structured bond on Wednesday. It pulled in pricing from guidance but opted for the lower end of the $500m-$750m size range the company was targeting.

The Republic of Iraq has set its sights on how much it is looking to raise with its first international bond outing almost a decade, according to a banker close to the deal.

This week brought the first of an expected rush of loans for Middle East banks, while Iraq is seeking a bond deal. Low oil prices mean a need for capital in the region, but it is not time for international dealers and investors to stampede there just yet.

Etihad Airways, in search of a platform from which to fund itself and its subsidiaries, has turned to the bond market’s financial laboratory and come up with a unique structure that has emerging market investors doing some serious credit work.

Lebanon has sent out its request for proposals for a new Eurobond, just as Moody’s warned that political protests reflect growing instability that could hit economic growth and confidence in the banking system.

The Republic of Iraq started a five day roadshow on Thursday, ahead of what would be its first international bond deal in almost a decade. But some buyers and bankers away from the deal suspect only a sub-$1bn deal with a double digit yield will be possible.

Debt bankers close to Etihad Airways’ structured bond deal are expecting investors to ask for a 50bp premium on top of the fair value yield, while interested fund managers have started price analysis in earnest.

Etihad Airways will meet investors from Thursday to introduce a structured deal that has been alternately described by bankers away from the transaction as “impressive” and “too clever by half.”

The Republic of Iraq starts a five day roadshow on Thursday, ahead of what would be its first international bond deal in almost a decade.

After being reopened by the strongest of the strong, the CEEMEA market’s attention has moved to the other end of the credit spectrum with Iraq and Egypt eyeing the dollar market.