GCC

Etisalat has been given until Friday to transfer all its shares in Etisalat Nigeria to a syndicate of 13 Nigerian banks, after talks on restructuring a $1.2bn loan from 2013 fell through.

Arabtec Holding, the United Arab Emirates’ largest listed construction firm, said on Tuesday its rights issue was fully subscribed, raising Dh1.5bn ($408m) for a recapitalisation.

Etisalat Nigeria is in the “advanced stage” of its negotiations with 13 local banks over the restructuring of a $1.2bn loan taken out in 2013, according to the company.

Ramadan, the Islamic holy month of fasting which began on May 26, has caused delays to loan deals that were expected to close this week in the Middle East, according to bankers in the region.

As concerns mount over the diplomatic stand-off between six Gulf states and Qatar, GlobalCapital investigated the immediate impact on the loan market in the region as well as its likely consequences and discovered a mixed picture.

Diplomatic tension in the Gulf between Qatar and Saudi Arabia and others has rattled the financial markets. But as the political trouble escalates, what that spells for the region’s capital markets is far from clear, write Bianca Boorer, Virgina Furness and Sharon Kimathi.

Bank ABC as sole initial mandated lead arranger has completed a $125m syndicated loan for Bahrain Commercial Facilities Company.

Oman's plans for loan market financing this year are taking shape, with the sultanate lining up an 'orderly queue" of deals, according to a banker involved in several of them.

Tensions in the GCC are rattling the buyside as both bank and non-bank investors wait for clarity over how the rift between Qatar and other regional states will develop. In the broader CEEMEA debt market, investors are eyeing Turkey’s new euro trade as an opportunity to find some juice in the low yield environment, and anticipating the dual tranche offering from Côte d’Ivoire on Thursday.

GCC debt markets are experiencing their first big wobble since gaining prominence as the most prolific issuers in CEEMEA, and no one saw it coming. The recent Qatar-related sell-off is both a stark reminder that EM assets are not a one-way bet, and highlights the vulnerabilities of a debt market fuelled largely by local bank demand.

Qatari dollar bonds sold off by as much as five cash points on Tuesday after the central banks of United Arab Emirates, Bahrain and Saudi Arabia demanded banks to provide details of their exposure to Qatar. The move follows countries in the region severing ties with the gas-rich state, accusing it of supporting terrorism.

Qatar’s debt sold off sharply on Monday after Saudi Arabia, the UAE, Bahrain and Egypt severed diplomatic relations, as well as all land and sea contacts, with the gas-rich state. Bankers recall a similar “flare up” in 2014, but are concerned about stability in the region’s financial markets.