Morning Commentary: Apicorp launches $750 million five-year notes; two sukuks on tap

By Rebecca Melvin

New York, Sept. 11 – Arab Petroleum Investments Corp., or Apicorp, launched a $750 million offering of five-year notes on Tuesday to yield mid-swaps plus 117 basis points, and a pair of sukuks, or Islamic bonds, were heard to be on tap for Wednesday.

But there was no word yet on Papua New Guinea’s planned U.S. dollar benchmark, according to market sources.

Apicorp, a multilateral development bank, launched its five-year notes (expected rating: Aa3) to yield mid-swaps plus 117 basis points. That was tighter compared to guidance of mid-swaps plus 125 bps to 130 bps and initial price talk at mid-swaps pus 145 bps.

The deals on tap for Wednesday include Abu Dhabi Islamic Bank’s Tier 1 perpetual security, which is non-callable for five years, and Al Hilal Bank’s five-year paper.

Meanwhile, Islamic Development Bank announced that it is preparing a sukuk, selecting banks and scheduling a roadshow for a five-year dollar deal.

National Bank of Oman SAOG is on the road with its five-year conventional note, and DP World Ltd. and DP World Crescent Ltd. will start a roadshow on Wednesday for new 10-year sukuk and possible 30-year conventional benchmark.

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