Morning Commentary: MENA region active; Sabic, Albania set mandates; Aldar sukuk on tap

By Rebecca Melvin

New York, Sept. 24 – The Middle East & Africa region continued to dominate the emerging markets primary market on Monday with a new mandate from Saudi Arabia's Saudi Basic Industries Corp. (Sabic) and pricing emerging on a deal from United Arab Emirates’ Aldar Investment Properties PJSC for a $500 million seven-year sukuk.

But away from MENA, the Republic of Albania joined the calendar with a planned euro-denominated offering of notes with an intermediate tenor.

Sabic’s planned dual-tranche offering of notes will be on a roadshow from Wednesday, with proceeds of a resulting deal earmarked to refinance its $1 billion five-year note, which matures on Oct. 3, and for general corporate purposes.

The Rule 144A and Regulation S deal for the Saudi chemicals, fertilizers, plastics and metals maker follows on the heels of a $2 billion sukuk in two tranches for Saudi Electricity Co., which priced on Thursday. The market eyed the differing format for the two Saudi deals. But primary focus was on the Aldar paper, which has been on the primary calendar since Aug. 31.

The expected pricing of Aldar on Monday tucks in ahead of the Federal Reserve’s monetary policy meeting slated to start on Tuesday with a press conference and anticipated rate hike in the cards for Wednesday.

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