Middle East Bonds

Nice Ltd, the New York-listed Israeli software company, has tapped the equity-linked market for financing with a new $400m five year convertible bond.

The Emirate of Abu Dhabi has appeared in the bond market for the third time this year, and for the third time is seeking a triple tranche deal. It re-opens the CEEMEA market after a brief summer drought.

Investors patiently awaiting Kuwait’s return to the debt markets could be disappointed after the country’s parliament rejected a contested debt law and forced it back to a committee. The setback places the Gulf monarchy in a difficult position, as experts say its financing options are fast running out.

Struggling Gulf state Bahrain has fallen further into junk territory, with its budget deficit expected to balloon as a result of an oil price slump and the Covid-19 pandemic. But it is not all gloom, experts said, as bond markets remain wide open for high yield issuance.

Monday’s resignation of Lebanon’s government in the wake of last week’s blast in Beirut has intensified angst among market spectators over the country’s future. IMF assistance hinges on the new government being reformers, and investors are being urged to be patient through what is expected to be a rocky restructuring process.

Delek Drilling, the Israeli energy company, launched a $2.25bn bond sale on Tuesday, in one of the few high yield emerging market bond deals seen during the coronavirus pandemic.

Israeli energy company, Delek Drilling, is set to launch a $2.25bn bond sale this week to support the expansion of its gas fields in the Mediterranean Sea, according to market sources.

GLP and First Abu Dhabi Bank both tapped investors in the renminbi bond market on Thursday. The Singapore-based logistics facilities provider took Rmb200m ($28.6m) from a Panda while the Middle Eastern firm headed to the Formosa market.

This week in Keeping Tabs: what’s next after the EU recovery deal, assuaging public anger, and the Lebanese economy.

Gulf sovereigns are set to raise record levels of debt this year thanks to the double shock of Covid-19 and an oil price slump, but one name is on investors lips: Kuwait. Instead of relying on shrinking reserves, the sovereign, which has not printed since its international bond debut in 2017, is expected to pass a parliamentary law increasing its debt ceiling, according to experts.

The Emirate of Sharjah launched its debut Formosa bond on Tuesday. Experts say the format is gaining more interest from emerging market issuers looking to diversify, while investors beyond the traditional Taiwanese buyers are also taking an interest in the market.

The Emirate of Sharjah has mandated banks for a dollar Formosa bond. Some say the market is becoming an increasingly popular one for emerging market issuers to tap.