Middle East Bonds

Oman’s Bank Muscat, plans to expand its Euro Medium Term Note programme from $800m to $2bn as it seeks to issue another Eurobond. It also plans to raise funds through a Or500m ($1.3bn) sukuk programme with the possibility of international sukuk later on said a senior official at the bank.

Oman’s Bank Muscat, plans to expand its Euro Medium Term Note programme from $800m to $2bn as it seeks to issue another Eurobond. It also plans to raise funds through an Or500m ($1.3bn) sukuk programme with the possibility of international sukuk later on said a senior official, at the bank.

South Africa and Luxembourg have stepped up their plans to issue sukuk as they look to be among the first non-Muslim majority sovereigns to hit the market this year.

The Islamic Development Bank has added its weight to the call for western sovereign sukuk issuance, having brought a personal record sized $1.5bn deal at a market record tight print. The deal is a clarion call for the UK and Luxembourg to get on with issuing their own debut sukuk, said bankers, and the IsDB believes they should also go bigger with their plans.

This week’s CEEMEA deals were trading well in the secondary market on Friday morning. Abu Dhabi Commercial Bank’s $750m bond was almost 10bp tighter after being priced flat. Gazprombank’s 5.5 year transaction was slightly above re-offer, and Russian Railway’s nine year euro transaction was up after being sold against a particularly difficult backdrop.

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The Islamic Development Bank has added its weight to the call for western sovereign sukuk issuance, having brought a personal record sized $1.5bn deal at a market record tight print. The deal is a clarion call for the UK and Luxembourg to get on with issuing their own debut sukuk, said bankers, and the IsDB believes they should also go bigger with their plans.

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Abu Dhabi Commercial Bank closed the Middle East's first FIG deal of 2014 this week, pricing a $750m bond flat to its secondary curve. Bankers both off and on the deal had doubted how much international interest there would be given how tight Middle East spreads are relative to the rest of the CEEMEA market. But the final order book left no doubt about demand for the region in the face of EM uncertainty.

The Islamic Development Bank has taken advantage of pent up demand for sukuk, grabbing $1.5bn instead of $1bn and pricing inside guidance at 23bp over mid-swaps. The deal is a clarion call for the UK and Luxembourg to get on with issuing their own debut sukuks, said bankers.

The Islamic Development Bank has taken advantage of pent up demand for sukuk, grabbing $1.5bn instead of $1bn and pricing inside guidance at 23bp over mid-swaps. The deal is a clarion call for the UK and Luxembourg to get on with issuing their own debut sukuks, said bankers.

The sukuk market has started slowly in 2014, but IFIS data for announced deals suggests there is enough in the pipeline to surpass last year’s total issuance. High profile deals could come from both regular borrowers and those tapping the market for the first time.