Middle East Bonds

The Central Bank of Bahrain will pay just 0.9% expected return on its latest BD20m ($53m) of short term sukuk al ijara. This is the latest grind tighter on a run that has seen it come in from 1.25% on its January offering.

At $1.5bn, the order book for Turkiye Finans’s $500m sukuk return on Tuesday was not to be sniffed at. But demand didn't reach the dizzy heights of this year’s other dollar sukuk deals, and that is thanks to the market’s last issuer, Damac Real Estate Development.

Turkiye Finans priced its $500m five year sukuk inside guidance at 5.375% on Tuesday. But while some market participants felt the early $750m interest received signalled a "sluggish" bookbuild, this grew to $1.5bn despite the tighter price – and demand continued in the secondary market.

Turkiye Finans will look to issue $500m of five year sukuk on Tuesday, said investors, with pricing for the notes expected to come around 375bp over z-spread by at least one investor.

The International Islamic Liquidity Management Corp (IILM) will re-issue $860m of commercial paper style sukuk next week – its third pricing of the year and fifth to date.

Less than a year after its buyout by private equity firm Rhone Capital, Eden Springs wants to sell a high yield bond to repay debt and partially repay shareholder loans.

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 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.