GCC

Arab Petroleum Investments Corporation (Apicorp) became the second issuer from the Gulf to tap the offshore renminbi market last week, marking a new development in the tool kit with which Middle Eastern borrowers are looking to harness Asian demand, according to a banker with knowledge of the deal.

Oman’s Bank Sohar has successfully closed the syndication of a $300m loan, underwritten by Bank ABC and Commerzbank in December.

Saudi Arabia has increased its loan from $10bn to $16bn as banks line up to join the facility, according to a statement from its Debt Management Office (DMO).

Arab Petroleum Investments Corporation (Apicorp) became the second issuer from the Gulf to tap the offshore renminbi market this week, making this year already the biggest on record for Gulf renminbi bonds.

State-owned holding company Investment Corp Dubai (ICD) is looking to refinance a loan maturing in June.

The Government of the Emirate of Sharjah has mandated five banks for a benchmark dollar sukuk — its first note in that market for over two years, though it did sell a Panda bond as recently as last month.

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.

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

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.

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.