Middle East Bonds

Yield-chasing European investors are snapping up paper from Middle Eastern banks, which are having their busiest year ever in euro private placements. Mashreq Bank has taken advantage of the demand to print its first ever deal in euros.

Prospective borrower Investment Corporation of Dubai will issue both sukuk and conventional bonds as part of its dollar offering, according to one investor who attended the company’s roadshow.

Dubai based financial services firm Shuaa will consider issuing a debut sukuk as it looks to raise between Dh200 ($54.4m) and Dh300m ($81.6m) of debt to grow its lending to small and medium size enterprises (SMEs).

Israeli Delek & Avner’s $2bn five tranche bond has tightened since pricing on Thursday evening — a further 20bp on the longer tranches and 26bp on the shorter.

Israeli Delek & Avner launched the largest non-sovereign CEEMEA bond of the year so far on Thursday — a $2bn deal printed across five tranches from demand of over $14bn. Among the CEEMEA region’s sovereigns, only Poland, Slovakia and Romania have priced deals as large or larger in 2014.

Investors have hailed the Investment Corporation of Dubai’s decision to issue a dollar sukuk as a sign that the emirate is genuine about its push to become the centre of the Islamic economy. ICD began roadshows on Thursday in Singapore as it lines up a dollar debut.

GlobalCapital's exclusive article last week on the United Arab Emirates’ shortfall in bankruptcy rules (“UAE urged to act on Basel III bankruptcy baffler”) has highlighted a Basel III compliance problem that is holding back the whole Gulf region, say bankers. But while the UAE has so far been lax in its response, it should take the lead and spur its neighbours to follow suit.

Albaraka Turk has picked arrangers as it aims to follow participation bank peer Turkiye Finans’s recent return to the dollar sukuk market. But one investor warned that Albaraka may find its deal more challenging.

Albaraka Turk has picked arrangers as it aims to follow participation bank peer Turkiye Finans’s recent return to the dollar sukuk market. But one investor warned that Albaraka may find its deal more challenging.

Investors have hailed the Investment Corporation of Dubai’s decision to issue a dollar sukuk as a sign that the emirate is genuine about its push to become the self-styled centre of the Islamic economy. ICD began roadshows on Thursday in Singapore as it lines up a dollar debut.

Delek & Avner has managed to slice over 50bp off initial price talk on the longest bond of its $2bn five tranche deal, bringing the final spreads safely inside Israel Electric Company, its closest comparable for the whole curve. Books stand at $13bn-$14bn.

Albaraka Turk has picked arrangers as it aims to follow participation bank peer Turkiye Finans’s recent return to the dollar sukuk market. But one investor warned that Albaraka may find its deal more challenging.