CEEMEA OPEN: QIIB continues investor meetings for USD Sukuk offering
- The Dollar was little moved overnight and is flat around 100.800 to start the fresh trading week.
- Late on Friday, Fed Waller's comments were seen as dovish as he stressed that he would consider another 50bps rate cut if the Jobs market worsens &, if data comes in soft, he is more willing to cut aggressively. He added that estimates indicate core PCE is running below target & inflation is softening much faster than expected.
- Fed Bowman warned that the 50bps cut last week could been seen as an early declaration of victory & she preferred a measured pace to avoid stoking demand, hence why she dissented.
- Asian stocks have firmed to between 2wk & 3mth highs on hopes of Chinese stimulus & S&P futures up0.25% o/n.
- US 2-10yr yield spread still steepening & now at a 2yr wide of 15bps vs a 2024 tight -49.5bps on the 25th June as Fed policy takes effect.
Fresh in the CEEMEA Pipeline
Date | Issuer | Ccy | Book Managers | Security Description | Description | Comps | At Ann. | Today |
19-Sep | QIIB | USD | SCB, ARI LLC, Doha Bank, DIB, Durkhan, ENBDC, HSBC, Lesha, Mashreq, QNB, Warba | Reg S | GICs and Inv calls for a PNC5.5 AT1 Sukuk | ADIB (JUL-2028) KIB (MAY-2029) ADCB (NOV-2028) |
On the Radar
- Qatar International Islamic Bank Q.P.S.C. ("QIIB"), rated A2 by Moody’s (stable) and A by Fitch (stable), a leading Islamic bank in Qatar, will hold investor meetings today (September 23) after it held a GIC last week (September 19), to advertise a USD-denominated benchmark Reg S PNC5.5 AT1 Capital Certificates offering.
- QIIB has mandated Standard Chartered Bank as Sole Global Coordinator along with Al Rayan Investment LLC, Citi, Doha Bank, Dubai Islamic Bank, Dukhan Bank, Emirates NBD Capital, HSBC, Lesha Bank, Mashreq, QNB Capital and Warba Bank as Joint Lead Managers and Bookrunner.
- The deal roadshow can be accessed here.
- Leads have circulated the following comps:
Issuer | Ratings | Ccy / Size | Cpn (%) | Next Call Date | Maturity | Sukuk | YTC (%) Bid |
Al Inma | NR | USD 1,000mn | 6.500 | 06/03/2029 | PERP | Y | 5.474 |
Al Rajhi | NR | USD 1,000mn | 6.375 | 16/05/2029 | PERP | Y | 5.268 |
Abu Dhabi Islamic Bank | NR | USD 750mn | 7.250 | 18/07/2028 | PERP | Y | 5.483 |
Kuwait International Bank | NR | USD 300mn | 6.625 | 01/05/2029 | PERP | Y | 6.092 |
Abu Dhabi Commercial Bank | NR | USD 750mn | 8.000 | 27/11/2028 | PERP | N | 5.876 |
Priced Deals
- There are no new priced deals.
What to watch on Monday
- In CEEMEA, the calendar brings Polish Retail Sales (08GMT) and Hungary Economic Sentiment & Business Confidence.
- In the US, Chicago Fed Nat Activity Index (12.30GMT and S&P Global PMIs (13.45GMT).
- Central bank speakers today include the Fed’s Bostic, Goolsbee & Kashkari along with the ECB's Cipollone.
Wider market Sentiment
- USD Index at 100.760
- UST 2yr/10yr at 3.591%/3.753%
- Bund 2yr/10yr at 2.206%/2.193%
- Brent at $74.84/brl
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