Middle East Bonds

Bahrain began a roadshow this week to gauge demand for a conventional dollar deal. Analysts expect its borrowing needs to rise sharply in order to stem a growing fiscal deficit, but this worrying trend could also turn some investors away.

State-owned Israel Electric began a roadshow on Tuesday ahead of a 144A dollar deal. The utility, one of most long-standing borrowers in the CEEMEA region, is updating investors on positive developments in the energy sector, said bankers.

Dubai property developer Nakheel will meet a Dh210m ($57.1m) profit payment on its trade creditor sukuk this week.

The deepening sell-off in emerging market bonds has thrown Dubai’s economic recovery under suspicion, with suggestions that the emirate may be in for another bumpy ride.

United Arab Emirates utility provider Sharjah Electricity and Water Authority (Sewa) has signed a $500m Islamic financing facility.

State-owned Israel Electric begins a roadshow on Tuesday ahead of a 144A dollar deal. The utility, one of most long-standing borrowers in the CEEMEA region, is updating investors on positive developments in the energy sector, said bankers.

Saudi Arabia’s General Authority for Civil Aviation looks set to come to market soon with the much awaited second tranche of its sukuk programme and has mandated three banks to arrange the deal.

Qatar Islamic Bank (QIB) has signed a QR365m ($100m) murabaha facility with Qatar First Bank (QFB), Qatar’s first independent Shariah-compliant financial institution authorised by QFC Regulatory Authority.

Political protests in Turkey last week and uncertainty over US Treasury rate rises hammered the country in the capital markets. But it has strong fundamentals and has held up well in the circumstances, said analysts. Turkish borrowers are by no means barred from the bond market.

Construction company Saudi Binladin Group has lined up investor meetings as it looks to issue a one year sukuk.

Saudi Arabia’s Power and Water Utility Company for Jubail and Yanbu (Marafiq) recently closed a SR2.5bn ($666m) debut sukuk.

Egypt is set to begin roadshows in the GCC region as it looks to issue a first sovereign sukuk. At the same time the government boosted its budget with a $2.7bn conventional MTN.