Middle East Bonds

Dampened US rates outlook bad news for EM inflows but numbers don't tell full story and non-specialists step up

Investors hope for cash inflows but no sign yet

The CEEMEA primary market turned a corner in 2024 after two dreadful years. Hopes of interest rate cuts fuelled demand, with investors wanting to lock in high coupons while they could. Market access returned for all but a few and although most deals went very well, some stood out more than others.

Bond issuance from the CEEMEA region boomed in 2024, as investors made the most of high yields before interest rate cuts kicked in and keeping new issue premiums low. Meanwhile, a rejuvenated group from Turkey redrew the borrower map, writes George Collard

Interest rate cuts mean spirits are high in the CEEMEA primary bond market after it recovered a semblance of normality in 2024. But Donald Trump’s election as the next US president has added uncertainty to the trajectory of interest rates, throwing borrowers and investors a curveball, write George Collard and Francesca Young

Observers disagreed on the revolution's potential impact on Turkey and other neighbours

Sub-investment grade sukuk scarcity drives demand

The country is the only purely sub-investment grade issuer left in the GCC

Sovereign's $2bn outing in February was a huge success

◆ Austrian bank completes strategic capital refi ◆ Investor response show 'no consensus' on pricing for 'very esoteric name' ◆ New deal has lower funding cost than March's pulled attempt ◆ Other debut issuers show deeply subordinated capital remains desirable

Proceeds to fund the development of oil and gas fields in Iraqi Kurdistan

Financial borrower pushes close to fair value as investors flock to five year note