Middle East Loans

A Russia euro-denominated bond has taken investors by surprise this week, as emerging markets issuers seem to be taking their last gasps in the bond market this year.

Saudi Arabia is mired in international controversy but its national energy company, Saudi Aramco, is said to have been sounding out the syndicated loan market for a deal to finance a $5bn petrochemicals plant. With even larger deals on the horizon, lenders appear to be supportive of the borrower despite the highly charged political situation. Mariam Meskin reports.

Dubai Aerospace Enterprise, the aircraft lessor 96% owned by state-controlled Investment Corp of Dubai, has closed a $720m loan with an international, rather than regional, syndicate, as Gulf borrowers continue to pivot away from local financing.

Bahrain-headquartered Gulf International Bank has successfully increased and closed a $500m loan, the bank announced on Wednesday.

UAE-based Bin Butti International Holdings has launched its debut syndicated loan to refinance existing debt worth $500m.

Despite commodity catastrophes and diplomatic discord, the Gulf is set to be one of the most promising regions for the syndicated loan market in coming years, with a number of projects in the pipeline and governments seeking to modernise their economies by diversifying their funding sources. Banks seeking long-term returns and future ancillary business should pay close attention.

Abu Dhabi’s sovereign wealth fund, Mubadala, is targeting the loan market to refinance a $1.75bn facility, amid a busy end-of-year period for the holding company in terms of funding activity.

A pair of rare euro bonds from sovereign emerging markets borrowers hit the market this week, much to the approval of investors who said the deals provided “good value”.

Qatar may still be under a blockade set by its Gulf neighbours, but bankers are optimistic about its borrowers' prospects in the loan market just as Qatar National Bank (QNB) returns for its second deal this year, writes Mariam Meskin.

Qatar National Bank has returned to the loan market to refinance a €2.25bn facility, the bank's second stint in the market this year.

Commercial Bank of Qatar is refinancing a $1bn loan signed in 2015, in one of the country’s first syndicated loan transactions since the Saudi Arabia-led boycott, which started in June 2017.

Emerging market issuance is picking up steam once more, despite the weakening across the board in secondary levels.