Middle East

The recovery of Turkish asset prices this week is less the result of prudent monetary policy — though that certainly helped — and more a lesson in the benefits of the personal touch and that markets are, ultimately, populated by humans.

Turkish dollar bonds outperformed in a heavy market this week after the Central Bank of the Republic of Turkey (CBRT) moved to simplify rates in order to protect the lira. The recovery of the lira to below TL4.5 to the dollar has been taken by the market to indicate that last week’s rate hike was a success.

Kuwait Integrated Petroleum Industries Company (Kipic) has secured a multi-billion dollar export credit agency backed loan to finance construction of a $3.6bn integrated refining complex in its home country.

Turkish assets have performed this week after a long period of weakness with two emerging markets portfolio managers saying that the worst of the volatility in the lira exchange rate may have passed.

Turkey’s Central Bank is fighting a losing battle, after its latest bid to protect its currency failed to prompt the support from investors that it hoped for. The move brought the CBRT closer into line with international standards, but could soon be irrelevant after elections on June 24.

Turkish dollar bonds outperformed in a heavy market on Tuesday after the Central Bank of the Republic of Turkey (TCMB) moved to simplify rates in order to protect the lira.

Dubai Aerospace Enterprise (DAE) has signed a conventional and Shariah compliant $480m four year revolving credit facility, as the Middle East continues to be the main bright spot in a dour CEEMEA loans market.

Yapi Kredi is the latest Turkish bank to refinance its syndicated loan, with the bank breaking from its peers and raising euros alongside the commonly seen dollars in the two year tranches.

Turkey’s central bank stepped in on Wednesday to stem the collapse of its currency, delivering an emergency 300bp increase, but market commentators deemed the move too little, too late, saying investors' confidence in the bank remained impaired.

Israel Chemicals navigated a difficult market, which saw a pulled investment grade deal, to print a rare 20 year bond combined with a buy-back.

Conviction levels are low among emerging market investors with many waiting on the sidelines this week as geopolitical risk and local currency weakness persist in wreaking havoc on EM bonds.

Telecom Egypt has agreed credit lines totalling up to $900m, as Egyptian borrowers find a warm reception from lenders.