Middle East Bonds

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.

Middle East mandates are keeping CEEMEA supply hopes alive in a difficult market, and even Ramadan’s arrival will not close the window for new deals.

Another bank has joined the procession of Middle East borrowers targeting perpetual deals, and picked banks for its first ever bond in that format.

National Bank of Abu Dhabi on Wednesday printed its $750m tier one perpetual with a coupon of 5.25%, the lowest ever for this kind of deal from the CEEMEA region. The feat was even more impressive for being printed on a day when Credit Suisse had its 10 year bond pulled because of market volatility.