Middle East Bonds

With emerging markets bond bankers all ready to start deploying their pipelines next week, the US threw a potential spanner in the works on Friday when it killed Iranian general Qassem Soleimani.

Equity-linked bond investors were left hurting again this week after bonds and shares in NMC Healthcare, the London-listed Emirati private healthcare business, were hit by accusations of fraud by short seller Muddy Waters. This is another painful episode for the convertible bond market after its troubles with Wirecard earlier in 2019, and an earlier scandal at Steinhoff International.

Shares in NMC Health, the London-listed Emirati private healthcare business, plunged more than 20% on Tuesday morning after US activist short seller Muddy Waters said it had grave concerns about the company’s balance sheet and financial statements, hitting the firm's convertible bonds.

Bankers in Doha this week were eager to start a World Cup funding run in Qatar, as concerns over the Gulf state’s conflict with Saudi Arabia began to dissipate.

IHS Markit and Tadawul, the Saudi Stock Exchange, are forming a partnership to create indices for Saudi Arabia’s local currency bond and sukuk markets.

A handful of rare visitors came to the marker this week to place debt in dollars and yen, and bankers scrambled for a QNB mandate.

Islamic Development Bank took €1bn out of the euro market on Wednesday, as it made its green sukuk debut with investors.

Islamic Development Bank on Tuesday came to investors with a benchmark five year deal, two weeks after announcing its intention to issue a green sukuk in the euro market.

Teva, the Israeli-US pharmaceutical company, priced a $2.1bn bond package at the tighter end of the initial price thoughts this week. While it is yet to come to a settlement over its alleged involvement in the US opioid crisis, investors were happy to jump aboard a rare double-B issue yielding up to 7%.

Israeli-US pharmaceutical company Teva has priced a $2.1bn bond package at the tighter end of initial price thoughts. Although Teva is still to sign a binding global settlement on its involvement in the opioid crisis, investors were happy to jump aboard a rare double-B issue yielding as much as 7%.

Flourishing conditions in the sukuk market stepped up another gear this week as Qatar International Islamic Bank priced an additional tier one bond that one of its leads claimed was the tightest ever such trade from the Gulf Cooperation Council states.

One Middle Eastern bank is in the market with a sukuk additional tier one note, while a second announced it will go on the road for its own AT1.