Middle East

Investors’ eyes are on the Middle East this week as a slew of borrowers bring Sukuk trades to market, but while hopes are high for successful deals, a Turkish central bank rate decision looms large in investors’ minds.

Islamic Development Bank is preparing a return to the sukuk market, picking banks for a roadshow for a dollar benchmark.

Abu Dhabi Islamic Bank (ADIB) and Al Hilal Bank (AHB) have completed their roadshows, and are set to reopen the dollar sukuk market on Wednesday.

Most rated Turkish corporates can handle their refinancing needs over the next 12-18 months, according to Moody’s. This is despite anecdotal evidence from bankers about deteriorating loan metrics in the country.

Akbank’s revised lender-friendly terms on its syndicated loan looks like it will be enough to secure a decent deal, though some bankers considering the trade say the issue runs far deeper than risk adjusted pricing.

Gas asset and infrastructure investment consortium Quadgas made its debut in the sterling corporate bond market on Monday with a £350m 11 year offering. The company had previously raised funds from the US private placement market, but this was its first benchmark public deal.

DP World hit screens on Monday to announce a tender offer of a 2019 Sukuk note and the sale of a new 10 year dollar benchmark.

The National Bank of Oman has launched a tender offer to buy back half of a 2019 dollar benchmark as well as announcing a roadshow for a new five year deal.

Some banks in the Middle East are turning their backs on the syndicated lending model as a way to try to preserve larger allocations in deals, according to a number of bankers from the region. Mike Turner reports.

Emerging market bonds are still under pressure from macro factors, but investors have plenty of capital markets business to keep an eye on as the pipeline, particularly in the Middle East, swells with deals.

Telecom Egypt’s $500m five year loan syndication is expected to take at least another couple of weeks after potential lenders met in Dubai on Tuesday.

Loans bankers in the Middle East are turning their backs on the syndicated lending model as a way to try and preserve larger allocations in transactions, according to two bankers from the region.