Middle East Bonds

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.

Lebanon's sovereign Eurobonds recovered some 60bp–120bp during the week ending Thursday, including a 25bp tightening on Wednesday morning, after prime minister Saad al-Hariri returned to the country in an apparent reversal of his recent resignation.

Investors in emerging market bonds were in a celebratory mood this week as the asset class rallied back following losses last week.

Citi has combined its Middle East and Africa (ex-South Africa) investment banking divisions and named a head for the new entity.

Qatar is preparing a non-deal roadshow at the start of December, according to two sources with knowledge of the state’s plans, with a $9bn bond in the offing.

Oman’s sovereign 2047s fell by as much as three cash points after Standard & Poor’s last Friday lowered the sultanate’s long term foreign currency credit rating to BB from BB+.

Saudi Arabian asset prices failed to bounce back this week after last weekend’s high profile arrests, even though wider emerging markets staged a late recovery.

Emirates NBD’s recent new issue has recovered some of the losses reported on Wednesday, though still remains below reoffer as emerging market debt bounces back after a tough couple of days.

Emirates Sembcorp Water & Power has named leads for its first deal, a $400m secured amortising note due 2035, and begins meetings on Thursday.

With political unease in Saudi Arabia contributing to increasing buy-side aversion to Middle Eastern credit, leading Dubai bank Emirates NBD paid a 5bp-10bp premium for its new five year note on Tuesday.