Turkey prices taps; investors await Saudi Arabia deal; Middle Eastern credits see some action

By Christine Van Dusen

Atlanta, Oct. 14 – Turkey priced new notes on a Friday that saw investors awaiting the new issue of notes from Saudi Arabia.

“Another interesting and tricky week draws to a close,” a London-based trader said on Friday. “Next week should be more of the same.”

Saudi Arabia received attention ahead of its upcoming dollar-denominated issue of notes due in five, 10 and 30 years.

“This will push [Gulf region] issuance for the year into record territory,” a trader said.

“The roadshow has now left London and kicks off the U.S. leg in Los Angeles today,” he said. “We are having plenty of client discussions after the well-attended lunch and group meetings for this much-awaited deal. Lots of varying opinions on pricing at this stage.”

Trading of Middle Eastern bonds on Friday was thin, he said, with some paper coming out from the higher-yielding names, he said.

“Meanwhile a credit like Dubai Electricity and Water Authority trades like a rock with what still feels like a decent order going through on the 2020 dollar notes,” he said. “DEWA 2020 is 18 basis points tighter on the month.”

Dubai’s DP World was active, the trader said, especially in the 2020s and 2023s.

Perpetual bonds from the Middle East saw steady demand during the week, he said, as did the taps of Abu Dhabi National Energy Corp.’s (TAQA) 2021s and 2026s.

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