Middle East

Equity market participants were stunned last Friday after the US assassinated Iranian general Qasem Soleimani. It followed what had been a strong end to 2019 in the market with many hopeful the momentum would carry into this year. But banks and investors need to be prepared for shocks, especially as domestic pressure on US president Donald Trump increases in the run up to November's election.

Robert "Bob" Fernandez, a veteran of EM debt capital markets, has joined Saudi Aramco's treasury.

Bahrain Mumtalakat, the country's sovereign wealth fund, is embarking on a roadshow with plans to print a seven year dollar sukuk. A syndicate official away from the deal called the move “courageous” given the political volatility in the Middle East.

Many investors made their first trades of the new year on Monday selling risk positions. That has thrown into doubt issuers' plans to bring new business to the primary market.

The State of Israel was first out of the blocks for emerging markets bonds on Monday, as it announced a dual tranche dollar offering despite market participants' continued caution after the US assassination of Qassem Soleimani.

A weekend of hostile rhetoric between Iran and the US has caused equity capital markets bankers to consider delaying new deals from the Middle East despite a healthy issuance pipeline, over fears that the two countries are gearing up for war.

With emerging markets bond bankers all ready to start deploying their pipelines next week, the US threw a potential spanner in the works on Friday when it killed Iranian general Qassem Soleimani.

Equity capital markets bankers' bullish mood was dented on Friday by falling markets as investors reacted to escalating tension in the Middle East after the US assassination of Iranian general Qasem Soleimani. Banks are hoping this change in sentiment does not damage deal making next week.

Burak Kaya is joining MUFG Turkey to lead its corporate banking activity for non-Japanese firms.

Etihad Airways has signed a €100m loan linked to the UN’s Sustainable Development Goals. The deal is one of the latest ESG-linked financings signed in the Middle East, which is developing an appetite for sustainability-linked debt.

Equity-linked bond investors were left hurting again this week after bonds and shares in NMC Healthcare, the London-listed Emirati private healthcare business, were hit by accusations of fraud by short seller Muddy Waters. This is another painful episode for the convertible bond market after its troubles with Wirecard earlier in 2019, and an earlier scandal at Steinhoff International.

Shares in NMC Health, the London-listed Emirati private healthcare business, plunged more than 20% on Tuesday morning after US activist short seller Muddy Waters said it had grave concerns about the company’s balance sheet and financial statements, hitting the firm's convertible bonds.