Qatar

The cost of buying credit default swaps on Turkish five year government debt has stopped its upward trajectory and eased lower, even as the country’s standoff with the US continues.

Two Qatari banks raised new debt in different formats on Thursday, proving that Qatari banks have a multitude of funding options available to them.

Commercial Bank of Qatar has become the first Qatari bank to mandate for a bond following the successful sovereign return in April, and much is riding on its success.

The strengthening dollar is wreaking havoc for emerging market bond investors as assets in local currencies and dollars alike take a hammering.

Four Gulf borrowers have provided a mixed bag of deals this week. While Taqa and Noor sold solid new bonds, this week’s debut issuers did not fare so well. Omantel traded wildly on the break and unrated Qatari conglomerate Mannai fared worse of all, pulling its deal.

After the Qatari sovereign launched its $12bn triple tranche return to the bond market last week, Mannai Corporate, a conglomerate from the country, is following it into the market this week. Mannai is looking to print a senior perpetual non-call five Reg S only dollar bond. It will be the company’s debut in the bond market.

Some 10 months after the eruption of the Gulf diplomatic crisis last summer, Saudi Arabia and Qatar have proved that the market is big enough for both of them, printing $11bn and $12bn deals respectively, and garnering a combined book exceeding $100bn.

The State of Qatar had taken orders of $32.5bn by lunchtime on Thursday, putting to bed any concerns that Saudi Arabia’s $11bn trade would cannibalise demand for its regional rival. In fact the strong performance of Saudi’s paper in the secondary market has helped boost support for Qatar’s trade, according to a banker on the deal.

Saudi and Qatar look to be printing jumbo bonds this week, but the timing of both in the same few days after so many months of waiting is prompting chatter about which sovereign has caused the traffic jam and whether political machinations are behind it.

The Commercial Bank of Qatar has signed a $250m borrowing with seven banks, in a deal syndicated in the Asian loan market.

Mannai Corp, a Qatari conglomerate, looks set to bring the first public bond from the country since the Gulf diplomatic crisis erupted last summer.

Mannai Corporation looks set to bring the first public bond from Qatar since the Gulf diplomatic crisis erupted last summer.