Middle East Bonds

Firms eager to set up Iran-focussed funds have had to contend with extension after extension of the talks upon which their prospective businesses depend. But as yet another deadline for an agreement on lifting Iran’s sanctions approaches, there are still firms creating fresh investment vehicles.

Peru’s Corporación Financiera de Desarrollo (Cofide) proved Latin America’s resilience amid widespread volatility with an $800m two part deal this week. In CEEMEA, Poland added its name to the pipeline of mandates hoping for a window.

Ripples from Greece’s weekend referendum reached the CEEMEA market on Monday. But a lack of recent bond issuance against crashing yearly volumes meant the immediate impact was minimal, and debt bankers are not ruling out deals this week.

Omani oil and gas firm Renaissance Services has picked banks for a subordinated perpetual deal in either dollars or Omani rial.

HSBC sits in its traditional top stop in the sukuk league table halfway into to what should be a record year for international benchmark issuance. But its lead has shrunk to the smallest margin in five years, with regional banks snapping at its heels.

Omani oil and gas firm Renaissance Services has picked banks for a subordinated perpetual deal in either dollars or Omani rial.

Although those in the CEEMEA bond market seem to have given up for the summer already, two SSAs — International Finance Facility for Immunisation and the International Finance Corporation — as well as Arab Petroleum Investments Corp have mandated banks for a sukuk.

Arab Petroleum Investments Corp (Apicorp) is likely to bring its debut sukuk deal in September, and has ambitious price plans for the first issue of its newly rated sukuk platform, according to debt bankers.

Bank of China has signalled its commitment to Beijing’s “One Belt One Road” policy with plans for a new five-tranche, four-currency bond that will be issued by its branches along the trade rout. The senior notes in dollars, euro, Singapore dollar and offshore renminbi are expected to raise up to $4bn and are a global first.

National Bank of Egypt has set roadshow dates for a prospective dollar senior deal, and will be ready to launch the transaction next week.

The Middle East remains the mainstay of the CEEMEA bond market, with borrowers continuing to put plans in place. National Bank of Oman has picked banks for its first ever additional tier one deal, becoming the latest in a long line of Middle East credits to mandate for dollar perpetuals.

Etihad Airways is hoping to raise more than $1bn in a structured deal that would help fund the company and several airlines in which it holds a stake. But bankers and investors are sceptical the borrower can sell such a complex transaction, writes Steve Gilmore.