Middle East

Turkey’s bonds have put up an incredible display of resilience to geopolitical shocks so far, but investors fear that an aggressive cut to the main policy rate will cause inflation to return and puncture confidence in the country’s economy.

Oman is set to return to the bond market for the first time in nine months this week. The sovereign has picked banks for five and 10 year dollar benchmarks.

The Emirates Strategic Investment Corp made its bond market debut on Tuesday, launching a $600m five year sukuk into a six times subscribed order book.

As Turkish bank borrowers prepare to refinance existing debt, a plethora of domestic and geopolitical troubles has once again brought pricing into question. Though secondary market spreads remain tight, bankers say primary issuance could widen.

Acciona nabs €155m from green Schuldschein - Places for People seals €150m private placement - Germany’s Badenova sells Schuldschein - Pershing Square nabs $400m in bond private placement - Claranova debuts in euro PP market - Pension Insurance Corp puts £40m into Scottish housing association - Oman's Octal raises $625m for expansion

The US has ousted Turkey from the F-35 stealth fighter programme because the country has begun receiving components of the Russian S-400 missile system. Meanwhile, the central bank’s credibility is damaged and an interest rate decision is only a week away. Does the bond market care? It seems not.

Dubai-headquartered international education provider GEMS Education is seeking a $1.85bn debt package to support CVC Capital Partners taking a minority stake in the company.

Oman-based Octal, a leading producer of plastic packaging, has raised loans to the value of $625m from a range of local and international lenders

Public Investment Fund (PIF), Saudi's sovereign wealth fund, is expected to close its second ever debt offering in September, according to bankers close to the deal. Some say the bridge loan, which is a reprieve to EM bankers that have been operating in a barren market all year, may receive tighter margins than PIF's competitively-priced debut loan in September 2018.

Hazem Shawki is set to join Credit Suisse from Goldman Sachs in order to lead its investment banking operations in the Middle East, Turkey and Africa, with a particular focus on pushing further into the Saudi Arabian market.

The Middle East is regaining its position as the core source of emerging markets issuance after a brief lull in June. Emirates Strategic Investments Company (ESIC) has announced a roadshow for its first dollar sukuk.

Turkey took delivery from Russia of the first components of its new S-400 missile system on July 12. The US is readying a new bevy of sanctions against the country, but investors say their effect will be limited.