CEEMEA OPEN: KFH breaks the silence
- The USD has trades on the back foot as we enter European hours on the first full trading week of 2025, putting it on track for a second straight lower daily close, backing further away from fresh cycle highs made last Thursday (DXY hit a 25.5-month high of 109.533 then), although strong dollar themes have remained obviously intact as the greenback has remained at elevated levels.
- USTs cheaper during Asia-Pac trade, but off worst levels that saw 10s come within in a whisker of last week's 4.6393% highest yield since early May. The 30-yr yield did break over last week's best, the 4.8440% high falling just short of last April's highest since November 2023. 2s are currently steady, and 2s10s remain contained within the most recent range.
- Overnight, Bunds have traded negative, down as much as 42 ticks, the lowest since November 7th. OATs are flat.
- Asia-Pac equity markets are mixed. Nikkei taking a 1.6% hit, Hang Seng/Shanghai also lower. KOSPI is +1.9% and ASX flat. Japan's final services and composite both dropped but were still above 50.
- China's Caixin PMIs were mixed. Services rose above 52, the composite fell close on a point to 51.4. European equity market futures are mixed. FTSE flat-to-marginally lower, Daxx/EStoxx50 higher.
- Brent is currently lower, but not after notching a higher-high which meant another best sine October 14th.
Fresh in the CEEMEA Pipeline
Date | Issuer | Ccy | Book Managers | Security Description | Description | Comps | At Ann. | Today |
06-Jan | Kuwait Finance House KSCP | USD | KFH, ADIB, ABC, Boubayn, DIB, FADB, HSBC, Mashreq, Mizuho, SCB, IC | Reg S | Inv calls for a 5yr sukuk |
On the Radar
- Following a drought in CEEMEA issuance since early December, Kuwait Finance House KSCPhas broken the silence, and we welcome the issuer to be the first to join the CEEMEA pipeline in 2025. KFH, one of the largest global Islamic banks, has arranged a series of investor calls and a GIC commencing today (January 06) to advertise a USD denominated Reg S only 5yr bmk fixed rate senior unsecured Sukuk.
- KFH has mandated KFH Capital as Global Coordinator along with Abu Dhabi Islamic Bank PJSC, Bank ABC, Boubyan Bank, Dubai Islamic Bank PJSC, First Abu Dhabi Bank, HSBC, Mashreq, Mizuho, Standard Chartered Bank and The Islamic Corporation for the Development of the Private Sector as Joint Lead Managers and Joint Bookrunners.
- A link to a pre-recorded GIC can be found here and the investor presentation here.
- KFH was last in the markets in January 2024, where it landed a USD1bn 5yr (Jan-2029) Sukuk at T+105bps, in from the T+135bps area and off the back of over USD3.45bn in final demand.
Priced Deals
- No new priced deals.
What to watch on Monday
- In CEEMEA, a quiet agenda ahead with no key data scheduled.
- In the US, there are final December PMIs (14.45GMT) followed by November factory orders and final durables (15GMT).
- Central bankers speak today includes FED’s Cook (14.45GMT).
Wider market Sentiment
- USD Index at 108.77
- UST 2yr/10yr at 4.277%/4.614%
- Bund 2yr/10yr at 2.161%/2.440%
- Brent at $76.34/brl
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