Middle East Bonds

Qatar National Bank and Bank of China kept the momentum going in the offshore renminbi bond market this week, with the latter’s Rmb4bn ($632m) deal the largest in nearly three years. Their success is an encouraging sign about appetite for the currency.

Lebanese lender Fransabank is making its debut green bond offering with a trade anchored and supported by the International Financing Corp. The deal marks the second such bond from the MENA region, and a third is on the way as international financing institutions (IFIs) and local banks look to the capital markets to fund the region’s energy needs.

Bank Muscat, Oman’s largest bank by assets and capital, has named leads for a five year dollar note.

Before 2017, US crowd services provider Equinix had not issued a bond in euros. But it has now visited the European high yield market three times, having completed its latest deal on Wednesday.

The Islamic Development Bank (IsDB) has mandated eight banks to roadshow a benchmark five year Reg S sukuk with a view to adding a 10 year tranche as well.

Qatar National Bank (QNB) kept the momentum in the offshore renminbi bond market going with a new issuance on Tuesday, showing there is still appetite for the currency.

First Abu Dhabi Bank raised $650m with its market return on Monday, as Gulf Corporation Council financial supply continued with Union National Bank.

The Commercial Bank of Qatar debuted in Swiss francs on Tuesday, selling three year bonds to ‘the who’s who’ of the Swiss franc bond market, according to a banker on the deal. CBQ’s trade is the best illustration yet of Swiss investors growing more comfortable with Middle Eastern financial credit.

After a three week wait, First Abu Dhabi Bank has deemed the market constructive enough to open books on its new five year sukuk, and had crushed the spread to 4bp over its existing bonds on Monday.

Saudi Arabia’s debt markets are open for business, the hiring charge is on and foreign banks are flooding in, but there has been a struggle to build a local force of primary bond market bankers, boding ill for the capital markets expansion the country is hoping for.

QInvest’s head of debt capital market and financial institutions has left the bank earlier this week.

It could be a clash of the Abu Dhabi banking titans as Abu Dhabi Commercial Bank is updating its MTN programme — a possible precursor to a bond issue — while First Abu Dhabi Bank is poised with a trade.