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The Iran war has led to a flurry of private trades from the Gulf
Even if ceasefire succeeds, investors will still want a risk premium
Funding costs and new issue premiums are much higher than GCC issuers are used to
Senior banker will move to Abu Dhabi to take up position
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Despite a public holiday on Monday and the second round of the French presidential election due this Sunday, the IPO market is vibrant, with two more names joining the pre-summer pipeline so far this week.
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Middle Eastern governments and companies rose to the financing challenge set by falling oil prices in 2016, rethinking their operations, cutting costs and turning to the international bond markets in committed fashion to plug funding gaps. Issuers in the Gulf Cooperation Council countries raised $66bn last year, and this year’s first quarter total of nearly $25bn suggests issuance will be similarly high in 2017.
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New deals from the Middle East are beginning to flow. Saudi Arabia's International Company for Water and Power Projects (ACWA Power) opened books on a conventional amortising note on Tuesday, as Saudi Electricity Co (Seco) and Oman Electricity Transmission line up sukuk trades.
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Jordan doubled the size of its January 2026s on Wednesday with a well-received $500m reopening.
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Jordan is on track to add to its dollar-denominated January 2026s after releasing initial price thoughts for a tap on Wednesday morning.
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Three banks have joined the syndication of a loan to Oman's Bank Sohar of $250m, which Bank ABC has been mandated to co-ordinate.