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As the Middle East's banks face rising funding costs, one is arranging what it describes as a mezzanine loan for a Gulf schools operator in a drive for juicier loan margins.

Abengoa, the Spanish firm threatening to become the largest bankruptcy in its country’s history, needs €1.655bn over the next two years in order to carry out its restructuring plan.

Bahrain increased the size of its bond tap on Tuesday from $500m to $750m. While bankers away from the trade said while it came cheap for a tap, it was not surprising given the challenges the country faces.

Investors have only been offered a tap of a Bahrain bond in the CEEMEA primary market this week so far, but it has been far from quiet as other events and people moves in EM caught the eye.

Standard Bank has denied a Reuters news report on Tuesday it is ceasing business on the EM desk that focuses on high yield.

European banks have been stacking up senior unsecured tranches in euros this week as they try and take size from the market before it slams shut again.

Hong Kong’s MTR Corp is seeking a loan of HK$15bn ($1.9bn) in two tranches and has picked a quartet of banks to helm the trade.

Chinese aluminium manufacturer China Hongqiao Group has wrapped up its HK$3.8bn ($487.8m) rights issue, with shareholders signing up for roughly 80% of the offering.

Hong Kong property developer Lai Sun Development has closed a HK$924.3m ($119m) one-for-two rights offering that was just short of 70% subscribed.

Singapore-based wastewater treatment company Hyflux has returned to the loan market for a $300m triple currency refinancing.

The Asia ex-Japan bond market finally saw some primary activity on Wednesday with the Republic of the Philippines set to be the first sovereign issuer of the year. The country launched a new 25 year bond and is giving investors the option to switch out of 16 outstanding deals at the same time.

The covered bond market could see the second Singaporean deal soon, with United Overseas Bank (UOB) mandating leads for a series of European investor meetings that could result in its first deal.