Middle East Bonds

Turkey’s Albaraka Turk and Kuveyt Turk plan to issue dollar sukuk before the Ramadan religious holiday in June, according to three people with knowledge of the matter.

Taqa used the strategy of a capped size and fair starting point for price talk to print its $750m 10 year bond 10bp inside its outstanding curve on Tuesday, according to a lead manager. It built a $4.55bn book in the process.

Majid Al Futtaim’s $500m bond held its ground in the secondary market on Wednesday morning, after the Dubai shopping mall operator priced the 10 year note well inside guidance on Tuesday afternoon.

Emirates NBD on Wednesday became the third Middle Eastern issuer this year to take to the Kangaroo market, selling a five year bond. Despite a weaker rating than other Emirati banks seen in market, the deal found favour with Asian accounts as a result of an attractive spread.

Malaysian property firm Hua Yang plans to issue MR250m ($76m) of murabaha sukuk.

Dubai shopping mall operator Majid Al Futtaim has listed a $1bn sukuk programme on the Irish Stock Exchange through its MAF Sukuk Ltd special purpose vehicle, opening up the possibility of a return to the Islamic bond market.

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, 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.