Middle East Bonds

Bahrain brought a new 10 year dollar bond to market on Wednesday morning, surprising syndicate bankers away from the deal with a new issue premium they said was unheard of for an investment grade credit.

Omani oil and gas offshore fleet contractor Renaissance has completed the second and final phase of its OR200.5m ($521.3m) refinancing programme.

The International Islamic Liquidity Management Corp has attracted criticism for delays in getting its programme of short dated sukuk underway. But IILM’s project must not be rushed if it is to achieve the success the Islamic market badly needs.

The Central Bank of Bahrain’s BD18m monthly sukuk al-salam issue has been oversubscribed by 304%.

Turkey remains on course to meet debt maturities over the coming year, say analysts and investors, despite the country facing a range of problems that are dragging on its economy.

Islamic finance has just begun to gain ground in Jordan. Its government passed a sukuk law last year but has yet to issue a sovereign deal, although it has signed several financing agreements with the Islamic Development Bank. EuroWeek’s sister publication Islamic Finance Information Service spoke to Bassem Awadallah, former finance minister of Jordan and a board member of Al Baraka Bank, about the development of Islamic finance and its wider economic impact.

The Central Bank of Bahrain has seen demand pick up for its monthly short-term sukuk al-ijara this month, after a dip in June.

Pledges of $12bn in aid to Egypt from Saudi Arabia, Kuwait and the United Arab Emirates this week gave the country a boost amid the upheaval of its military coup. But while the support adds confidence in the short term that approaching debt maturities can be met, it has also heightened investor concerns about Egypt’s overall indebtedness.

Construction company Saudi Binladin has issued a SR1bn ($266.7m) one year murabaha sukuk.

Israel Electric Corp returned to a recent dual tranche dollar deal on Tuesday with a $300m increase that hit a narrow window before US holidays and non-farm payroll data, and avoided a weak Wednesday opening.

Israel Electric returned to its recent dual tranche dollar deal on Tuesday. The $300m increase hit a narrow window before US holidays and non-farm payroll data, and avoided a weak Wednesday opening.

International investors watched Egypt this week with a mixture of anxiety and hope ahead of scheduled mass protests on Sunday, June 30, which could damage president Mohammed Morsi. The Tamarod movement has the potential to further destabilise the country, but may also help break the post-revolution political paralysis that has blighted its economy.