CEEMEA OPEN: GFH launches its 5yr sukuk at 7.50%a

• The Dollar Index pulled back to the 104.300 handle overnight, with the move appearing to have been driven by developments in the US presidential elections.

• With Trump widening his lead in polls, participants appear concerned that a resurgence of inflation may occur due to a return of trade tariffs.
• Released after hours, the Fed Beige Book reported only flat to modest growth across most of the US, with more than 50% of the 12 districts reporting “slight or modest” growth in employment, while the majority reported that prices increased by a “slight or modest pace".
• S&P500 shed 0.9% on Wed to its worst close in 13 days but the futures are up 0.2% ahead of the EZ open.
• Asian indices are in the red, Brent futures firmer but shy of Tues $76.32brl 10 day high & gold also higher but well below Wed's record apex at $2758.4/oz.
• The US 10yr yield softer o/n at 4.2157% vs a circa 13wk peak at 4.2556% yest & Dec Bunds at 132.85 vs Tues 12.5wk low at 132.58.

Fresh in the CEEMEA Pipeline

On the Radar

• GFH Financial Group B.S.C. ("GFH"), a diversified financial group headquartered in Bahrain with operations spanning across the GCC, rated B- by S&P, BB- by Capital Intelligence and B by Fitch (all with a stable outlook) has now launched its USD-denominated, fixed rate, 5-year, benchmark, Reg S, senior, unsecured, Sukuk offering at 7.50%, in from the 7.50% area guidance and 8% area IPTs. The deal has attracted over USD2bn in demand so far, excluding JLM interest.
  • GFH has mandated Al Rajhi Capital, Abu Dhabi Islamic Bank, Bank ABC, Emirates NBD Capital, J.P. Morgan, Kamco Invest, Mashreq, Sharjah Islamic Bank, Standard Chartered Bank and Warba Bank as Joint Lead Managers and Bookrunners.
  • The bond is expected to be rated B- by S&P and B by Fitch, will follow, subject to market conditions.

• Africell Holding Limited. rated B (Stable) by S&P and B- (Stable) by Fitch, has launched its USD300mn debut 5NC2 Reg S Senior Secured note at a final yield of 10.5%, in from the mid/high 10s% IPTs. Orderbooks are in excess of USD550mn, excluding JLM interest.
  • Africell has mandated Citi, J.P. Morgan and Standard Bank as Joint Global Coordinators and Physical Bookrunners.

Priced Deals

• No new priced deals.

What to watch on Thursday

• A very light agenda in CEEMEA today, with only Czech Consumer & Business Confidence (07GMT) on tap.
• A heavy data slate on tap in the US, including Chicago Fed Nat Activity Index (12.30GMT), Initial Jobless/Continuing Claims (12.30GMT), S&P Manf/Services/Composite PMIs (13.45GMT), New Home Sales (14GMT) and the Kansas City Fed Manf Activity (15GMT).
• Today's scheduled central bank speakers include the Fed's Hammack & the ECB's Kazaks & Lane.

Wider market Sentiment

• USD Index at 104.329
• UST 2yr/10yr at 4.053%/4.212%
• Bund 2yr/10yr at 2.090%/2.303%
• Brent at $75.65/brl

Updated at 06:15GMT

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