Middle East Bonds

Majid Al Futtaim and Abu Dhabi National Energy Company (Taqa) have continued the theme of United Arab Emirates borrowers issuing longer term paper, with both firms looking to price 10 year bonds on Tuesday.

Genel Energy, the largest independent oil producer in the Kurdistan Region of Iraq, is planning to issue $400m in bonds that will mature in 2019. The global roadshow for the deal finishes at the end of this week.

Dubai-based lender Emirates NBD is set to sell its debut Kangaroo bond on Wednesday, following two other Emirati issuers which sold Kangaroo deals in March.

Morocco’s parliament has delayed a vote on its draft Islamic banking bill but will hope to reach a decision by next week, said Mohamed Al Ghazwani, advisor to the standing parliamentary committees for finance and economic development.

Having been labelled ‘toppy’ in some quarters last week after a quick-fire 15 year sovereign sukuk, there is no sign of a retreat this week from Dubai or its neighbour Abu Dhabi. Investors have set aside nerves once again and scampered to fill their shopping carts with Majid Al Futtaim and Taqa 10 year bonds. Then again, there are plenty of reasons to brush off toppiness for now and say Dubai ain’t all bad.

Majid Al Futtaim and Abu Dhabi National Energy Company (Taqa) have continued the theme of United Arab Emirates borrowers issuing longer term paper, reported GlobalCapital, with both firms looking to price 10 year bonds on Tuesday.

Abu Dhabi bank Al Hilal has launched its Global Balanced Fund, a Shariah-compliant fund which will invest in global equities and sukuk.

Dubai’s decision to cut the minimum size requirement of sukuk issued in the emirate to just Dh10m ($2.72m) from its previous Dh50m is likely to help the return of domestic deals, said market participants. But while welcomed, some warned that this could lead to risks for retail investors.

Abu Dhabi National Energy Company, known as Taqa, sold its first euro note since October 2006 on Thursday.

Abu Dhabi’s state-owned investment firm Mubadala priced its first international benchmark bond in three years this week, receiving around $5bn in orders for a $750m eight year deal. Debt bankers on and off the deal clashed over the starting point but the bookrunners argued the transaction had successfully allowed Mubadala to maintain a presence in the market, reprice its bond curve and secure its status as a high grade issuer.

Dubai issued a $750m 15 year sukuk this week in a drive-by sale that bankers hailed as a smartly executed, well oversubscribed deal that could tempt other issuers to sell long dated sukuk. But even as the deal drew a $2.3bn book and traded firmly in the aftermarket, some investors had misgivings, Dan Alderson writes. For them, the deal was a sign that Dubai’s strong bond rally is nearing its end.

Saudi Telecom Company, one of the largest phone operators in the Gulf region, looks set to hit the sukuk market with a debut deal. Bankers said it has mandated JP Morgan, National Commercial Bank's investment arm NCB Capital as well as Standard Chartered to manage the sale.