Middle East

Bahrain looked set for a successful dollar market return as books built rapidly for its dual tranche bond following the release of initial price thoughts early Tuesday.

After completing its first international bond issue earlier this year, Qatar’s Ahli Bank has also signed a $195m club loan — its second ever loan from international banks.

Turkish funding officials are hopeful covered bond supply will improve in 2017 as new debut names surface and deals price tighter than the sovereign.

The names of banks backing Indian firm Intas Pharmaceutical’s bid for the UK and Ireland assets of Teva Pharmaceutical Industries have emerged.

Turkey’s spreads have not recovered almost a week after Moody’s junked its credit rating, but bankers insist the sovereign and other Turkish borrowers will have access to the capital markets once stability has returned, even if borrowing costs rocket. Virginia Furness reports.

Rating: Baa1/BBB-

Oman locked down $1.5bn this week, pricing “wisely” with a decent new issue premium and kicking off a busy few weeks of issuance from the Gulf Corporation Council’s oil rich, but cash poor, sovereigns as Bahrain and Saudi Arabia ready trades.

Moody’s move to junk Turkey's rating last Friday was met with howls of disdain from investors after they believed the agency had hinted there would be no downgrade. But no diligent fund manager should be moving positions based on a throwaway comment from a single analyst.

Union National Bank of the UAE nipped into the primary market a $600m bond on Wednesday, well ahead of competing supply, paying a skinny, if any, new issue premium.

There is plenty that links Asia with the Middle East across economics, culture and politics with countries in both regions keen to take advantage of the opportunities. But progress on capitalising on those connections has been slower than expected, writes Elliot Wilson.

Oman left a chunky new issue premium on the table with its latest $1.5bn bond sale, but with competing supply looming, and a market backdrop that included two pulled trades, EM bankers said it was a prudent move that resulted in a great trade and over $4bn of orders.

Lenders are finalising a $190m loan for Ahli Bank QSC which has been arranged in a club format, according to a banker on the deal.