Middle East Bonds

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.

The Islamic Development Bank will target $1bn with a planned sale of five year sukuk – its largest bond deal yet.

Dar Al Arkan’s $450m 5.75% five year sukuk has performed well in secondary markets. The paper traded up to 100.75 bid on Wednesday, having been priced below par at 99.47 the day before.

Saudi Arabia’s Dar Al Arkan has issued a $450m five year dollar sukuk inside guidance at a 5.75% coupon. The deal is the first tranche of a SR2.8bn ($750m) international programme.

Saudi Arabia’s Dar Al Arkan began investor meetings on Monday as it looks to issue the first sukuk of a multi-tranche international programme.

Bahrain’s Al Baraka Islamic Bank has opted to raise $200m through a privately placed 18 month sukuk.

Abu Dhabi Commercial Bank sold its first subordinated Swiss franc bond on Thursday afternoon, a lower tier two 10 year non-call five note. There was interest from private banks and asset managers, but EuroWeek understands that the deal was not fully sold, with rival syndicate officials attributing the lack of demand to the tight spread over mid-swaps.