Middle East Bonds

Qatar’s banks have been turning to collateralised borrowing to boost liquidity after being all but shut out of the public debt markets since June, and the deals are proving mutually beneficial to both lender and borrower, with international banks able to continue to show support for Qatar.

Citigroup has hired Majed Al-Hassoun to spearhead the relaunch of its investment banking effort in Saudi Arabia.

Debut sukuk issuer Emirates Reit on Wednesday priced a larger than expected deal of $400m after books reached nearly $1bn.

Doha Bank Qatar has sold a yen clip through MUFG, its first since June when the country became embroiled in a regional diplomatic spat. The trade is illustrative of a gradual return by investors to Qatari credits, said MTN bankers.

Four Qatari banks have been meeting investors with a view to printing bonds.

Qatar's banks face a wall of maturities in 2018 and need the door to capital markets funding to be flung open for them. But it does not have to be the Qatar sovereign that does the opening.

Emirates Reit, the world’s largest listed Sharia compliant real estate investment trust has drawn an order book of over $850m for its five year sukuk.

Emirates Sembcorp secured the second project bond this year from the United Arab Emirates on Wednesday, and after a two day execution, the new deal came flat to fair value.

Emirates Sembcorp Water & Power revised guidance for a new issue downwards on Wednesday morning after taking orders of $2.3bn.

Saudi Aramco’s jumbo IPO is taxiing towards take off, though the timing and any co-listing locations along with Riyadh have yet to be revealed. London and New York’s exchanges are eager to host a co-listing, with Toronto, Hong Kong and Singapore also in the frame for what promises to be the biggest ever IPO, valuing the company at $2tr.

Emirates Sembcorp Water & Power has opened books on its $400m amortising note. Some market participants say the move signals the next phase of GCC fiscal rebalancing as governments look to offload fully operational infrastructure projects onto international investors, though others are sceptical that the trend will really take off.

Emirates REIT, the world’s largest listed Sharia compliant real estate investment trust, has named leads for its debut sukuk.