New Saudi tranches edge up from issue but remain below par; Sharjah, Damac price sukuk

By Rebecca Melvin

New York, April 11 – The Kingdom of Saudi Arabia’s newly priced notes edged up on Wednesday with the long-dated 2049 outperforming the two shorter tranches after the sovereign priced $11 billion of notes due 2025, 2030 and 2049. Sharjah Islamic Bank PJSC also priced $500 million of Islamic bonds at par for a profit rate of 4.231%, and the deal was seen flat to weaker at the end of the session for a close of 99.85 bid, 100.05, according to a London-based market source.

Spreads were mostly wider for Sharjah’s existing bonds.

Damac Real Estate Development Ltd. was another issuer that fixed final terms on Wednesday, also for a $500 million five-year Islamic bond that priced at par, but this one with a higher profit rate of 6 5/8%. It was not heard in secondary market action.

Neither Oman Telecommunications Co. SAOG, which was on the calendar and concluded roadshow meetings on Wednesday, nor the sovereign Qatar were seen to have priced expected deals in what was otherwise a jittery session.

Spreads were mostly wider in the Middle East and Africa region although Saudi Arabia’s existing sovereign bonds held in well. Egypt, Lebanon, Oman and Qatar were wider however, and Lebanon’s short-dated paper was significantly wider.

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