Middle East

Global banks are, for the moment at least, standing by their Turkish clients despite deepening financial problems in the country. The yield on Turkey’s 10 year sovereign bond hit almost 20% this week, driven to this vertiginous height by diplomatic tensions with the US and an economy riddled with problems. Silas Brown and Lewis McLellan report.

Fallout from a diplomatic incident drove yields on Turkish sovereign paper to almost 20% this week. While yields have come off their highs, the picture remains bleak for the beleaguered nation.

Sri Lanka and Turkey are preparing to sell their first Panda bonds, enticed by falling funding costs in China's bond markets. But given they both have lower credit ratings than previous sovereign Panda issuers, they may face an uphill battle as regulators scrutinise their finances.

The Saudi Capital Markets Authority has approved a resolution allowing NCB Capital to raise funds for a new Saudi ETF, linked to the MSCI index, via an IPO.

We Soda, a soda ash producer fully owned by Turkish industrial conglomerate Ciner Group, has signed three seven year term loans totalling $1.66bn-equivalent in the biggest Turkish corporate loan in half a decade.

Turkish banks are gearing up for a round of loan refinancing at a time when the country is a risky economic hunting ground. But bank lenders are confident the loan market will support Turkish banks, albeit at wider margins.

Public Investment Fund, the sovereign wealth fund that invests for the government of Saudi Arabia, is seeking global bank lenders for a debut loan. Banks, short of new deals in the region and eager to get closer to a country growing more reliant on capital markets, have been quick to show their interest. Silas Brown reports.

The US has imposed sanctions on two senior officials in the Turkish government, prompting debt and equity markets to sell off and driving Turkish lira to over five to the dollar for the first time in history.

Public Investment Fund, the sovereign wealth fund that invests for the government of Saudi Arabia, is seeking global bank lenders for a debut loan.

Turkey’s Akbank is seeking to refinance a pair of $337m and €515m one year loans signed last August.

Kuwait Foreign Petroleum Exploration Co (Kufpec) has mandated banks for a five year loan of around $1bn, according to two sources.

HSBC has appointed Gareth Thomas as head of global banking for the Middle East, North Africa and Turkey. He starts in the new job in September.