Almost 20 years ago, global fixed income investors scarcely heard of the word ‘sukuk’, let alone understood the asset’s unique structural features or benefits. Much has changed since, with the global sukuk issuance topping USD74.8bn at the end of 2016. But with the asset class’ impressive growth being hamstrung by liquidity shortages and a lack of global standards, the development and proliferation of those standards – and a protracted effort on behalf of market makers to harmonise those standards – is needed to help take the market to the next level.
Boosted by a positive global outlook and rising oil prices and despite growing geopolitical risk, top corporate, quasi-sovereign and sovereign CFOs, Group Treasurers and Heads of Debt Management in the Middle East were resolutely optimistic about the financial prospects of their organisations heading into Q4, according to our most recent Middle East CFO Market Sentiment Monitor.
Petropavlovsk sold USD500mn of fresh debt –– PSB gets downgraded – Rosneft’s shares take a hit due to Venezuelan crisis – Venezuela and Russia agree on debt restructuring –ABLV placed USD40mn of unsubordinated notes – Belarus to issue USD600mn next year – The government to support Turkey’s export sector
Saudi bonds fall as officials arrested amid anti-graft crackdown – Saudi PFI to contribute USD20-40bn to Blackstone-run fund – Egypt secures USD653mn financing for 13 solar projects – APICORP to issue USD500mn sukuk – ADNOC eager to pen USD6bn loan from syndicate of 13 banks – Bank Sohar issues a OMR100mn perp – Bahrain reportedly calls for GCC to freeze Qatar membership
BADEA to support economic development in the continent – SA budget deficit rose 4.3% – AfDB suspended a loan to Nigeria – Kenya to reopen 5-year notes – Ghana issued USD1.3bn of fresh debt – Tanzania struck a deal with Barrick Gold for USD300mn – Inflation in Zambia dropped – Zimbabwe hopes to cut budget deficit to 4%
It has been a difficult 12 months for the Turkish economy, but green shoots are finally starting to emerge and international lenders are refocusing on the next wave of funding opportunities in the country. We speak with Hulusi Horozoğlu, Assistant General Manager, Head of Wholesale Banking at HSBC Turkey, one of the country’s leading investment banks, about the dynamics of the local market, and where – against a broader global backdrop of low yields – the next wave of international liquidity is likely to land in Turkey.
Abu Dhabi-based National Central Cooling Company PJSC, better known as Tabreed, secured its first club loan through an AED1.5bn 10-year sharia-compliant facility, enabling the company to extended its debt maturity profile and appeal to new pockets of global and regional investors.
GCC nations issued USD50.1bn of debt in 2017 – Flynas to start operating flights to Iran – KSA sold a SAR10bn in local sukuk – Abu Dhabi Commercial Bank issued a USD315mn kangaroo bond – QNB to refinance a USD3bn loan – Noga issued a USD1bn bond – Warba Bank syndicating a USD250mn loan – Jordan sold USD1bn of fresh debt – OETC considering a USD-denominated sukuk
AfDB approved a USD200mn funding facility for private sector projects –Foreign investors bought ZAR18bn of SA bonds – Zuma could face new corruption charges – Fidelity Bank tapped the international markets – IMF concerned about Nigeria’s debt – Ethiopia devalued its currency – CBK placed a 5-year bond – Mauritius to hit the local currency markets
Syndicated lending in EMEA down 9% to USD610bn in 2017 – Abu Dhabi’s USD10bn bond 3x oversubscribed – UAE’s Ajman Bank secures USD200mn syndicated Islamic loan – UAE banks looking to ditch Qatari assets over GCC rift – Saudi Aramco on course to complete IPO in 2018 – Saudi Arabia issues USD12.5bn international bond – Qatar mulling USD9-11bn bond sale
- Off the Record: Middle East DCM Must Evolve to Prosper in Challenging Times
- Africa Credit Markets Brief: 20 September – 04 October
- Middle East Credit Markets Brief: 13 September – 27 September
- Exploring the Next Frontier in the GCC Capital Markets: Saudi Arabia
- Dar Al-Arkan Looks to Fill Shortage of Saudi Real Estate Firms in Dubai
15 Feb 2018