Middle East

Holders of the defaulted EA Partners bonds claim that Etihad Airways and Abu Dhabi gave them implicit guarantees for the notes, which were issued to fund other troubled airlines. The bondholders, backed by restructuring advisers and corporate sleuths, are buckling up for a battle for their money. Karoliina Liimatainen reports.

This year’s second Turkish bank refinancing wave has started and borrowers are pushing hard for tighter pricing. Akbank is expected to set the benchmark for its peers by securing tighter margins on its upcoming loan refi.

Two CEEMEA issuers — one of which is a Russian corporate — have mandated for bonds and are heading off on roadshows, ending a barren summer for the asset class.

Global banks have been stepping up their pitches to win the mandate for oil giant Saudi Aramco's $100bn IPO during the second week of meetings, as competition heated up to win a spot on the on-again, off-again blockbuster sale.

Investors this week have again affirmed their confidence that Middle Eastern issuance will be the redeeming factor in emerging markets this year with a handful of names expected to raise debt, despite a challenging third quarter.

MEA-based waste management services provider Averda has amended and extended an existing term loan facility, garnering 70% oversubscription.

Saudi Arabia’s sovereign wealth fund, Public Investment Fund (PIF), is close to finalising its second syndicated loan, which is scheduled for September. Margins are slimmer than on the borrower’s debut last year, according to bankers, though some in the market wondered if the fund will push even further on pricing before the deal is done.

Equity bankers flew out to the Middle East this week to pitch for roles in the IPO of Saudi Aramco, Saudi Arabia’s state oil and gas giant, according to equity capital markets sources.

The Middle East is facing its heaviest ever redemption schedule at the start of 2020, and investors are expecting the region to dominate the primary market when issuance begins in September.

Albaraka Turk Participation Bank and the Islamic Development Bank have signed a $40m Islamic financing facility to support small and medium enterprises in Turkey.

A number of highly anticipated emerging market IPO issuers are understood to have shifted listing plans to next year instead of the last quarter of 2019.

ING's Turkish arm, ING Bank AS, has raised a $309m-equivalent trade finance loan from international lenders. The deal is a precursor to the year's second round of Turkish bank refinances, expected to begin in the next month.