Middle East Bonds

The Islamic Development Bank priced its largest ever sukuk this week at its tightest ever price — and with what leads said was its biggest and highest quality order book. The $1bn five year also prevailed in a week in which the rest of the EM new issue market was shuttered due to global volatility.

Egypt this week moved to bridge its budget deficit with a $2.7bn 4.25% November 2014 bond via bookrunners HSBC and QNB Capital. The note was issued on Tuesday from the country’s $12bn EMTN programme.

The Islamic Development Bank priced its largest ever sukuk this week at its tightest ever price — and with what leads said was its biggest and highest quality order book. The $1bn five year also prevailed in a week in which the rest of the EM new issue market was shuttered due to global volatility.

Qatar National Bank sold its first-ever fixed rate Swiss franc bond on Tuesday, encouraged by investor interest after a recent survey named QNB as the strongest bank in the world.

The Islamic Development Bank has priced a $1bn five year sukuk at just 30bp over mid-swaps, having tightened guidance from Tuesday’s high 30bp area. IsDB will pay a 1.535% profit rate on the notes.

The Islamic Development Bank has given guidance of high 30 basis points over mid-swaps for its five year benchmark sukuk. Leads built books to over $1bn on Tuesday and these are likely to go subject mid-morning London time on Wednesday, with pricing to follow.

This week saw a big surge of MENA bond and sukuk activity, with four dollar deals coming to market and two other issuers lining up roadshows. The wave breaks the recent regional lull and points to a further flurry in the coming weeks as borrowers try to seize a window before the Middle East summer kicks in.

Dar Al Arkan’s $450m 5.75% five year sukuk bucked the recent trend by performing well in the secondary market after pricing on Tuesday. The paper traded up to 100.75 bid on Wednesday, having been priced at 99.47. And despite the general market sell-off on Thursday, the notes were still quoted at 100.25 by the close.

Dar Al Arkan’s $450m 5.75% five year sukuk bucked the recent trend by performing well in the secondary market after pricing on Tuesday. The paper traded up to 100.75 bid on Wednesday, having been priced at 99.47. And despite the general market sell-off on Thursday, the notes were still quoted at 100.25 by the close.

A new $1bn issue of tier one perpetual notes for Emirates NBD sold off on Thursday, amid the broader weakening that followed comments from Federal Reserve chairman Ben Bernanke on Wednesday. The borrower had printed the deal on Wednesday with a yield of 5.75%, having launched with more than $4.25bn of orders, but the paper drifted below par the next day, to be seen at 97.86 bid.

Abu Dhabi Commercial Bank sold $300m of 10 year non call five lower tier two bonds on Wednesday, pricing the deal at the tight end of final guidance, at 220bp over mid-swaps.

This week saw a big surge of MENA bond and sukuk activity, with four dollar deals coming to market and two other issuers lining up roadshows. The wave breaks the recent regional lull and points to a further flurry in the coming weeks as borrowers try to seize a window before the Middle East summer kicks in.