Middle East

The Kingdom of Saudi Arabia is tapping hard currency debt markets for the first time since Fitch hit it with a downgrade, launching a $2.5bn sukuk on Tuesday.

Middle Eastern shopping mall developer Majid Al Futtaim is holding investor calls this week as it eyes another green sukuk deal.

The UAE's Emirates Water and Electricity Co and Saudi Arabia's Acwa Power have secured loans of Dh2.71bn ($738m) for Abu Dhabi-based Taweelah power and water desalination plant.

Saudi Aramco has delayed the launch of its mega IPO for the second time in two years and investors are starting to tire of continued speculation and no hard numbers on valuation.

The Emirate of Sharjah shrugged of any concerns about broader volatility in emerging markets on Wednesday, to price a 10 year sukuk flat to its curve.

Investors are keeping a watchful eye over the escalating tit-for-tat threats between the United States and Turkey. Asset prices have so far remain unmoved, but analysts have warned that any move to impose tougher sanctions could be catastrophic.

It has been a busy week so far in CEEMEA bonds this week with three deals sold. Meanwhile, in the loan market, sanctions threaten the pricing on Turkey bank loans.

Aldar Investment Properties has raised a 10 year $500m sukuk, achieving a tightening of 35bp beyond initial guidance.

The Emirate of Sharjah is planning a benchmark 10 year Reg S senior unsecured sukuk.

Turkey’s banks have begun their second refinancing season of the year, though increasing political uncertainty, which has led to new US sanctions on Turkey, could potentially jeopardise primary and secondary pricing levels for the borrowers, according to bankers.

Equity investors expect there will be an IPO of Saudi Aramco this year as long as Saudi Crown Prince Mohammed Bin Salman (MBS), and the Saudi government, go ahead with the deal at a valuation below his $2tr aim. But some are concerned the Saudi's will push ahead with whatever value they deem the company is worth, regardless of initial feedback.

Turkey’s decision to launch a military offensive in Syria has reopened the possibility of sanctions from the US, with its Senate introducing a bill to do so on Wednesday. However, the investor community is doubtful about their impact.