CEEMEA OPEN: SEC & ADCB go live

• Cash USTs closed in Asia-Pac due to a Japanese holiday (National Foundation Day), will reopen once London steps in.

• After spending most of the session flat, the 10yr US future has not long dropped to an overnight low, but within Monday's bounds. President Trump formalised tariffs on all steel and aluminium imports with no exemptions. These will take effect March 4th.

• Mar24 Bunds/OATs are off 15-20 ticks

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• European equity market futures are marginally lower, US peers also in the red. A mixed session in Asia-Pac trade with Hang Seng/Shanghai lower, KOSPI higher and ASX flat.

• Front month Brent has posted a higher-high for a second consecutive session hitting a circa 1-week best. Another record high gold.

Fresh in the CEEMEA Pipeline

On the Radar

• Saudi Electricity Company, rated Aa3/A/A+ by Moody's/S&P/Fitch, has now gone live with its USD-denominated Reg S Senior Unsecured dual-tranche Sukuk in the following format:
  • USD 5yr at T+120bps area IPTs.
  • USD 10yr green bond at T+130bps area IPTs.
  • The SEC has mandated HSBC and Standard Chartered Bank as Joint Global Coordinators to arrange a series of fixed income investor calls, commencing on Monday 10th February 2025. Together with the Global Coordinators, Abu Dhabi Commercial Bank, First Abu Dhabi Bank, Mizuho, MUFG, SMBC and IMI-Intesa Sanpaolo have been Mandated as Active Bookrunners. In addition to the Active Bookrunners, Alistithmar Capital, BofA Securities, ICBC International Securities Limited, BNP Paribas, Emirates NBD Capital, NATIXIS, Dubai Islamic Bank PJSC, Bank of China and SNB Capital have been appointed as Passive Bookrunners. MUFG and SMBC are also acting as Joint Green Structuring Agents.
  • The issuer was last in the markets in February last year, where it landed a USD 5- and 10-year dual tranche that priced at USD800mn at T+90bps and USD1.40bn at T+110bps, respectively.
  • Leads have circulated the following comps:

• Abu Dhabi Commercial Bank PJSC("ADCB"), rated A Positive (S&P) / A+ Stable (Fitch), is marketing a USD-benchmark 5yr (Feb-2030) Reg S Senior Unsecured note at SOFT+105bps guidance.
  • ADCB has mandated HSBC Bank (Taiwan) Limited and Standard Chartered Bank (Taiwan) Limited as joint managers.
  • The issuer was last in the markets in September, where it landed a USD500mn 10.5NC5.5 T2 Reg S offering at T+170bps, in from the T+210bps area IPTs off over USD3.6bn in final demand.

• Joining its CEE peers from earlier this month, The Republic of Albania (acting through its Ministry of Finance), rated Ba3 (stable) by Moody's and BB- (stable), commenced a series of fixed income investor calls yesterday (February 10^th) to advertise a EUR-denominated Reg S offering with 10-year tenor.
  • Albania has mandated Deutsche Bank, IMI-Intesa Sanpaolo, J.P. Morgan and Societe Generale as Joint Lead Managers and Bookrunners.
  • The last time Albania was in the markets was back in June 2023, where it landed a EUR600mn Senior Unsecured Note at 6.125% off the back of over EUR1.3bn in demand.

Priced Deals

• No new priced deals.

What to watch on Tuesday

• In CEEMEA, Hungarian CPI accelerated to 5.5% y/y in January vs the 4.8% consensus and 4.6% previous reading. The m/m print also rose more than expected, to 1.5% vs the 0.9% estimate and from 0.5% in December.
  1. Still to come, South African manufacturing production (11GMT) and Russia Trade Balance (13GMT).

• In the US, just the NFIB small business optimism is on tap (11GMT), seen falling a touch to 104.7 in January from 105.1 prior.

• Central bank speakers to talk include ECB's Schnabel (17GMT) talk as well as the Fed's Hammack (13.50GMT), Chair Powell (15GMT) at Part 1 of his semi-annual testimony, plus Williams & Bowman (20.30GMT).

Wider market Sentiment

• USD Index at 108.36
• UST 2yr/10yr at 4.279%/4.515%
• Bund 2yr/10yr at 2.032%/2.385%
• Brent at $76.54/brl

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