Middle East Bonds

Turkey priced a €1bn 12 year euro transaction almost flat to its secondary curve this week, although there was some disagreement about where the borrower's outstanding euro bonds were trading before the new launch. But bankers on the bond argued that a slim concession, strong oversubscription and an impressively granular book had made the deal a clear success.

The Lebanese Republic finished an exchange offer coupled with a tap and a new benchmark bond this week. It priced the new bonds with small premiums and secured its highest participation rate yet for an international exchange, said a banker on the deal.

Luxembourg’s government will take extra time to draft a sukuk bill in the hope it can persuade its Council of State not to demand a longer, three-month delay of the Grand Duchy’s Islamic bond debut.

The Lebanese Republic finished an exchange offer coupled with a tap and a new benchmark bond this week. It priced the new bonds with small premiums and secured its highest participation rate ever for an international exchange, said a banker on the deal.

Turkiye Finans has taken advantage of Turkey’s post-election rally to hit the road on with a Reg S dollar sukuk, which is only the second non-sovereign Turkish bond to surface this year.

Gulf Keystone Petroleum priced its $250m 2017s on Tuesday with a semi-annual coupon of 13%, the highest interest rate offered from the CEEMEA region since South Africa’s Edcon sold €425m 13.375% 2019s in November.

Turkey priced a €1bn 12 year euro transaction almost flat to its secondary curve this week, although there was some disagreement about where the borrowers outstanding euro bonds were trading before the new launch. But bankers on the bond argued that a slim concession, strong oversubscription and an impressively granular book had made the deal a clear success.

The Republic of Turkey started execution on a nine year euro deal on Tuesday morning, which divided debt bankers between those who thought the starting spread ambitious and those who saw it as cheap.

Kuala Lumpur based RAM Ratings has pledged to support the development of local currency sukuk markets in the Gulf region, after being accepted as Malaysia’s first member of the Gulf Bond and Sukuk Association on Monday.

FWU Group has closed the second tranche of its $100m sukuk al wakala programme.

Damac Real Estate Development's sukuk this week has blazed a trail for sub-investment grade borrowers as Middle East investors start to migrate down the credit spectrum. Bankers close to the $650m deal said that Damac’s tight print at 310bp over mid-swaps late on Wednesday would serve as great encouragement for double B and single B rated names to come to market, including those that have not done so before.

Saudi Electricity Co priced $2.5bn of dollar sukuk late on Tuesday — its biggest ever offering — inside initial guidance.