Saudi Arabia talks new sukuk; Apicorp prices notes; Africa Development Bank to bring deal

By Rebecca Melvin

New York, Sept. 12 – The Gulf Council Cooperation countries were in focus in emerging markets debt on Wednesday, with Saudi Arabia announcing a new sukuk, or Islamic bond, and initial price talk, representing its first new issue activity in five months on the heels of Saudi Arabia’s Arab Petroleum Investments Corp., or Apicorp, pricing $750 million of 4 1/8% five-year senior notes on Tuesday at mid-swaps plus 117 basis points, according to market source.

Abu Dhabi-based Al Hilal Bank and Abu Dhabi Islamic Bank each launched on Wednesday new deals. Al Hilal was pricing a $500 million five-year sukuk to yield mid-swaps plus 148 bps, and Abu Dhabi Islamic Bank was pricing a $750 million tier 1 perpetual Islamic note to yield 7 1/8%.

The notes are non-callable for five years.

Meanwhile, African Development Bank said it plans to price a U.S. dollar benchmark offering of five-year global Securities and Exchange Commission-exempt bonds, with initial price talk at mid-swaps plus 7 bps. The multilateral development bank is based in Abidjan, Ivory Coast.

But outside of the Middle East and Africa, the emerging markets debt market was quiet again, but mostly steady, marking a continuation of stability this week that stands in contrast to volatility in the prior weeks.

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