Middle East

Garanti Bank is expected to issue the first green mortgage-backed Turkish covered bond, which will be privately placed with the International Financial Corporation (IFC) and certified by a third party.

Qatar’s debt sold off sharply on Monday after Saudi Arabia, the UAE, Bahrain and Egypt severed diplomatic relations, as well as all land and sea contacts, with the gas-rich state. Bankers recall a similar “flare up” in 2014, but are concerned about stability in the region’s financial markets.

In this week’s round-up, the Hong Kong Exchange’s USDCNH futures record their second best trading volume on Wednesday, renminbi deposits in Hong Kong increase by 4.1% in April, and China and Germany agree to co-operate on trade and finance.

Oman’s Bank Sohar has had to reduce the number of participants on its $250m syndicated loan after it was heavily oversubscribed, according to a banker on the deal.

Oman Oil has mandated 12 banks to arrange a $1.2bn five year syndicated loan to refinance a $1bn tranche of a loan it took out in 2014, according to a banker on the deal.

The Islamic arm of Turkey's Ziraat Bank has signed a $236m one year Murabaha syndicated loan with 13 banks, according to a banker on the deal.

Mavi Jeans, the Turkish maker of designer jeans, has published the prospectus for what could be the largest Istanbul IPO for four years, according to Dealogic.

Ratings agency Moody’s opined on the Middle East after market close on Friday, with the United Arab Emirates seeing a better outlook while Qatar’s creditworthiness took a hit. Qatar’s rating was cut from Aa2 to Aa3 with a stable outlook on the back of a weakening in the sovereign’s external debt to GDP levels and uncertainty around where growth will come from in the medium term.

China’s FX market records Rmb11.38tr ($1.65tr) of transactions in April, the State Administration of Foreign Exchange releases more foreign investment quotas, and CFETS completes first options write-off in the interbank market.

Kuwait National Petroleum Co is due to finalise documentation on its final loan facility for its 'clean fuels' project, bringing the total debt accumulated for the project to $7.2bn.

Turkish legislation has been in place for years and six borrowers have set up covered bond programmes, but so far supply has proved fleeting. Nevertheless, delegates at the CEE Covered Bond Forum in London heard this week that the challenges that held the market back are likely to disappear soon.

Malaysia Airports Holdings is looking to revise covenants on a €500m loan from 2015 taken for the acquisition of Istanbul Sabiha Gökçen (ISG) International Airport.