Middle East Bonds

The Central Bank of Bahrain (CBB) will pay a 1% return on its latest BD20m ($53m) of short term sukuk al ijara — a tightening from last month’s issue which paid a 1.1% return.

Dubai bonds and sukuk traded up on Monday, after United Arab Emirates authorities revealed that its recently rolled over debt was refinanced on better than expected terms.

The bond market on Monday reacted calmly to a Crimean declaration of independence and its application to join Russia. Russia's bonds are still under pressure and CDS levels are still rising. But the primary CEEMEA market remains open, and Middle Eastern borrowers are among those planning deals, said EM debt bankers.

Dubai bonds and sukuk traded up on Monday, after United Arab Emirates authorities revealed that its recently rolled over debt was refinanced on better than expected terms.

Gulf Finance House will seek approval from its shareholders this month to issue $500m of convertible sukuk or other facilities.

More emerging market issuers could look to the Kangaroo market in the near future as they attempt to replicate the success of National Bank of Abu Dhabi’s second deal in the format. The trade, sold Wednesday, appealed to yield-hungry Australian investors.

Dubai’s recent rollover of $10bn in debt extended to it by the United Arab Emirates’ central bank was widely hailed at the time as a positive by market participants. But the lack of forthcoming detail since on the new terms and tenors of the arrangement has prompted concern for some investors.

Saudi Electricity Co will test demand for long term sukuk with a minimum 15 year tenor when it comes to market — the first borrower to look beyond five years in the asset class since the sell-off that hit emerging markets in May last year.

National Bank of Abu Dhabi sold its second ever Kangaroo bond on Wednesday, a comfortably oversubscribed five year trade. The scale of demand for the deal could lead to further Kangaroo issuance from emerging market financials, according to syndicate officials.

Saudi Electricity Co will test demand for long term sukuk with a minimum 15 year tenor when it comes to market — the first borrower to look beyond five years in the asset class since the sell-off that hit emerging markets in May last year.

Saudi Electricity Co will test demand for long term sukuk with a minimum 15 year tenor when it comes to market — the first borrower to look beyond five years in the asset class since the sell-off that hit emerging markets in May last year.

Having peaked at this time last year, issuance of long dated sukuk has since become almost impossible for all but a very select group of borrowers, say market participants.