Morning Commentary: New Nogaholding tranches up in early trading; Mubadala notes rise

By Rebecca Melvin

New York, Nov. 1 – The performance of new issues debuting in the Middle East and Africa debt market was mixed on Thursday, which was the first trading day of November.

The new tranches of Bahrain’s Oil & Gas Holding Co. BSC edged up after the oil and gas investment and development concern priced $1 billion of notes in dual six- and 10-year tranches on Wednesday.

The $500 million Nogaholding 7 5/8% notes due 2028 were seen trading at 100.80 bid, 101.20 offered, a London-based trader said. And the $500 million Nogaholding 8 3/8% notes due 2028 were seen doing even better at 101 bid, 101.37 offered.

But Abu Dhabi’s Mubadala Development Co. PJSC’s 4½% 10-year notes edged higher after the sovereign wealth company priced $800 million of the senior unsecured notes at 99.586 to yield 4.552%, or mid-swaps plus 135 basis points. The new Mubadala notes were seen in trade at 99.85 bid, 100 offered.

Also new to the market on Thursday was Islamic Development Bank’s €650 million five-year sukuk, which priced at par with a distribution rate of 0.554% and spread of mid-swaps plus 20 bps. Those notes were not a feature of trade.

Pricing of the four tranches cleared out MENA’s new issue forward calendar.

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