28th May, 2025
- Cash USTs have cheapened overnight, with the long-end leading the way higher. 30s are up 2-3bp to 4.9790% and 1bp down from the Asia-Pac best. 10s are up 5bp versus yesterday worst to 4.4733%. That's also up 7bp from the 100-day MA. 2s are near flat at 3.9855%.
- European equity futures point south, although FTSE treads above water. US equity futures are lower. Asia-Pac cash equity markets are mixed. Nikkei adds 0.25% and Hang Seng drops 0.51%.
- Brent trades an inside day and is up around 35c from yesterday's close to $64.44/brl. Oil did rise above $65/brl at best o/n. The market monitoring the prospect for more US sanctions on Russia. Gold also trades an inside day, in positive waters around $3309.
- In the headlines, Trump said that he was encouraged the EU is speeding up negotiations on trade after extending the 50% tariff deadline to July 9.
- JGB futures have closed lower around 139.78 (-66 ticks) and the 40-year yield is up 8bp to 3.382% after results of the 40-year auction, which attracted the weakest demand since July. Meanwhile, BoJ Governor Ueda highlighted the uncertainty created by ongoing US trade talks, while Finance Minister Kato admitted they're keeping a close eye on the bond market.
Fresh in the CEEMEA Pipeline
Date | Issuer | Ccy | Book Managers | Security | Description | Comps | At Ann. | Today |
27-May | SIB | USD | Arqaam, DIB, ENBDC, FADB, HSBC, Kamco, Mashreq, SCB | Reg S | IPTs: PNC6 Sub AT1 Sukuk at 6.500%a | |||
28-May | Mamoura | USD | ADCB, FADB, HSBC, JPM, Mizuho, ADIB, Barclays, CA, ENBD, ICBC | Reg S | IPTs: 10yr Sukuk @ T+95a | MUBAUH (APR-2034) ADNOCM (MAY-2035) ADGB (APR-2034) | G+53 G+45 G+31 | G+49 G+44 G+24 |
28-May | Boubyan Bank K.S.C.P. | USD | Citi, HSBC, SCB, ABC, BC, DIB, KFH, KIB, SMBC, TICDPS, Warba | Reg S | Inv calls for a 5yr Sukuk |
Priced Deals
Date | Issuer | Ccy | Amount (m) | Coupon | Maturity | Yield | Spread | IPTS to Pxd | Book size (m) | Coverage | NICs |
27-May | Abu Dhabi Commercial Bank PJSC | USD | 600 | SOFR+100 | 10-06-2030 | 0.0 | |||||
27-May | Saudi Arabian Oil Company | USD | 1500 | 4.750 | 02-06-2030 | 4.833 | T+80 | -35.0 | |||
27-May | Saudi Arabian Oil Company | USD | 1250 | 5.375 | 02-06-2035 | 5.394 | T+95 | -35.0 | |||
27-May | Saudi Arabian Oil Company | USD | 2250 | 6.375 | 02-06-2055 | 6.509 | T+155 | -30.0 |
On the Radar
- There was a new entrée to the pipeline on Wednesday and it was none other than MDGH Sukuk Limited, rated Aa2 (Moody’s) / AA (S&P) / AA (Fitch) (All Stable), which is out with a USD bmk Reg S 10yr (Jun-2035) Cat 2 registered Senior Unsecured bond at CT10+95bps area.
- Mamoura has mandated Abu Dhabi Commercial Bank, First Abu Dhabi Bank, HSBC, J.P. Morgan and Mizuho as Joint Global Coordinators, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Barclays, Crédit Agricole CIB, First Abu Dhabi Bank, HSBC, J.P. Morgan and Mizuho as Joint Lead Managers and Joint Bookrunners and Emirates NBD Capital and ICBC as Passive Bookrunners.
- The issuer was last in the markets in October 2024, where it landed a USD1bn 5yr sukuk at 4.6%, in 25bps from IPTs on the back of USD2.3bn in final demand.
- Leads have circulated the following comps:
Security | Rating | CCY | Amt (MM) | Mty | B Yld | B G-Spd |
MUBAUH 4.959 04/04/34 | Aa2/NR/AA | USD | 1,000 | 4-Apr-34 | 4.927% | 53 |
ADNOCM 4 3/4 05/06/35 | Aa2/NR/AA | USD | 1,500 | 6-May-35 | 4.923% | 45 |
ADGB 5 04/30/34 | NR/AA/AA | USD | 1,500 | 30-Apr-34 | 4.709% | 31 |
- In addition, Sharjah Islamic Bank PJSC, one of the leading Islamic banks in the UAE, rated A- by S&P (negative outlook) and BBB+ by Fitch (stable outlook), has now gone live with a USD-denominated Reg S PNC6 fixed rate resettable unrated AT1 Capital Sukuk at 6.50% area IPTs. Today’s business.
- SIB has mandated Arqaam Capital, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Kamco Invest, Mashreq and Standard Chartered Bank as Joint Lead Managers and Joint Bookrunners.
- SIB was last in the markets also in February, where it priced a USD500m wng from bmk Feb-2030 senior sukuk at 5.3% off the back of over USD1.7bn in final demand.
- Moreover, Boubyan Bank K.S.C.P., rated A2 by Moody’s, A by S&P and A by Fitch (all with a stable outlook), a leading Islamic bank based in Kuwait and 60.4% owned by National Bank of Kuwait, has arranged a GIC and a series of fixed income investor calls to commence today (May 28). This, to advertise a USD-denominated Reg S 5yr bmk Senior Unsecured Sukuk offering.
- The issuer has mandated Citi, HSBC, and Standard Chartered Bank as Joint Global Coordinators, and alongside, Bank ABC, Boubyan Capital, Dubai Islamic Bank, KFH Capital, KIB Invest, SMBC, The Islamic Corporation for the Development of the Private Sector and Warba Bank as Joint Lead Managers.
- Boubyan bank was last in the markets back in March 2022, where it landed a USD500mn 5yr (Mar-2027) Sukuk at T+100bps, in 15bps from IPTs. The deal attracted over USD800mn in final demand.
- We’re expecting a quieter issuance week following holidays in the US and UK on Monday and ahead of Ascension Day in parts of Europe on Thursday. Concerns over the US fiscal outlook will also impact investor appetite. Still, we saw three more issuers join the pipeline overnight and two of the now five total deals land deals.
- Saudi Arabian Oil Company, has now sold its first dollar-bond sale of 2025 on Tuesday as the world’s biggest oil exporter looks to leverage its balance sheet. Saudi Aramco has landed a USD5bn three-part Reg S Cat 2 Senior Unsecured tranche as follows:
- USD1.50bn 5yr (Jun-2030) at T+80bps, in from the T+115bps area IPTs.
- USD1.25bn 10yr (Jun-2035) at T+95bps, in from the T+130bps area IPTs.
- USD 2.25bn 30yr (Jun-2055) at T+155bps, in from the T+185bps area IPTs.
- Tuesday’s sale occurred amid a debt spree by the Saudi government and affiliated companies. The kingdom’s debt levels jumped the most ever last quarter as it borrows to help cover an expected budget shortfall resulting from an ambitious economic diversification plan and falling oil prices.
- In addition, Abu Dhabi Commercial Bank PJSC, has now priced a USD600mn 5yr (Jun-2030) Senior Unsecured note in registered form at SOFR+100bps, unchanged from guidance.
What to watch on Tuesday
Key data:
- US May Richmond Fed economic indicators (14GMT) will be of focus, followed by the Dally Fed services activity (14.30GMT).
- The FOMC minutes (18GMT) will be scanned for anything about the curve steepening and what it could mean for policy.
Key events:
- Fed’s Kashkari (8GMT).
Wider market Sentiment
- USD Index at 99.728
- UST 2yr/10yr at 3.965%/4.473%
- Bund 2yr/10yr at 1.779%/2.329%
- Brent at $64.27/brl
Updated at 06:15GMT
For all the latest developments in Asia and LatAm primary market issuance, please see our regional reports:
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