Published: February 1, 2017
Gulf issuers prepare to unleash dollar deals
Gulf issuers are clamouring to print fresh debt, and bankers are predicting a deluge of deals in the coming months as borrowers try to squeeze in before the earlier-than-usual Ramadan this summer.
Bank borrowers from the Middle East are leading the pack, with Gulf International Bank, Dubai Islamic Bank and Warba Bank having either officially mandated banks or begun speaking to arrangers and regulators about transactions.
Gulf International Bank, rated Baa1 by Moody’s and A- by Fitch, is the first bank from the region to announce a mandate for an international bond in 2017. The borrower has mandated GIB Capital and JP Morgan as joint global coordinators, as well as Citigroup, HSBC, Mizuho, National Bank of Abu Dhabi and Standard Chartered as joint lead manager and bookrunners to arrange a US dollar benchmark trade of up to five-years, the lead bank group said on Tuesday.
The issuer’s chief financial officer, Stephen Williams, led the delegation to meet with investors on Friday 13 and Monday 16 of January, and is considering either a a floating and/or fixed rate deal Reg S senior unsecured trade from its existing US$2.5bn medium term note programme.