Middle East

Turkey has had a sensational quarter, with borrowers from the country raising more than $10.2bn in the market — the highest total in history. But with its central bank short of reserves and its currency struggling to hold on to its gains, a cap in hand visit to the IMF may be around the corner, and Turkish issuers’ best funding days may be behind them.

The Government of Sharjah has launched its $1bn seven year sukuk with books for the deal in excess of $4.3bn. A banker on the deal put the new issue premium paid at 0bp-5bp and said that 'this was the result we were aiming for', given that this is the first deal from the Emirate printed with eligibility for the JP Morgan emerging market bond indices.

Bankers remain confident that Turkey's 'resilient' banking system will weather increasing political and economic volatility, as the country enters a recession and approaches local elections.

Citi has appointed Elissar Farah Antonios as cluster head for the United Arab Emirates, the Levant and Iraq.

The Turkish lira has suffered heavy losses against the dollar, falling to its weakest level since October 2018 and shaking market participants’ confidence in the ability of the country's borrowers to access the market.

The National Bank of Ras Al-Khaimah has picked banks for a dollar benchmark, keeping up the steady flow of Middle Eastern paper.

Qatar National Bank hit the market on Thursday while Sharjah is going on the road to promote a sukuk.

Turkey’s capital markets rehabilitation has been one of the most remarkable emerging markets stories of the past six months, but investors’ appetite for the nation’s paper is finally starting to wear thin.

Middle-Eastern payments company Network International is getting plenty of traction in pre-marketing for its IPO on the London Stock Exchange and has garnered interest from investors interested in anchoring the transaction, according to sources close to the IPO.

Vakifbank is taking orders for a five year dollar bond — its first benchmark deal in more than a year.

Qatar National Bank hit the market on Thursday, nipping into the market just behind Qatar Islamic Bank’s $750m five year sukuk. Its Middle Eastern neighbour, Sharjah, is going on the road to promote its own sukuk.

Vakifbank will be the next borrower to join the growing list of Turkish credits returning to the bond market after the nation’s currency crisis in 2018.