Middle East Bonds

Israel Electric braved an uncertain market to launch a dual tranche dollar deal this week, but it managed to print a solid trade on Tuesday afternoon in spite of market uncertainty ahead of the US Federal Open Market Committee meeting on Wednesday.

Emerging market bond bankers hope Wednesday's US Federal Open Market Committee meeting will calm the market and offer issuers a window. Israel Electric has already proved successful deals can get done, and there are plenty of borrowers waiting for their chance.

The Central Bank of Bahrain sold BD20m ($53.2m) of short-term sukuk al ijara in its monthly sale, which was oversubscribed by 35%.

The international sukuk market remains open for business despite a lull in new issuance and the big recent sell off in emerging market bonds, say investors.

Israel Electric broke the silence in the CEEMEA corporate bond market on Tuesday, opening books on a dual tranche dollar deal. Other issuers remain sidelined until the US Federal Open Market Committee meeting ends on Wednesday, but there are strong arguments for coming sooner rather than later, bankers say.

Political protests in Turkey should hold no fear for supporters of Islamic finance in the country. The hard work has been done and the product looks set for a big future.

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.