The remarkable political events in the Middle East this year have made their mark on the local capital markets, but confidence in the region - both as a capital markets hub and as a deal generating region - remains.
The first project sukuk issue for the Satorp refinery aims to diversify the investor base for the project and broaden possibilities for the Saudi capital markets. By Isla Binnie.
Wakala is frequently used on financing transactions. By Andrew Hart, partner, Alex Childs, associate, and Vanessa Ross, trainee, in the energy practice at Fulbright & Jaworski International LLP in London.
The Muharraq wastewater project reached close in September 2011, more than two years after the RFP was released to bidders. By David Wadham, partner in the energy, transport and infrastructure group, Ashurst LLP.
The M&A market in the Middle East, like other regions around the globe, has been directly affected by the global financial crisis and the instability that has continued in its wake. By Darren Davis, managing director, head of resources and energy group MENA, HSBC.
Political uprisings, the deepening eurozone crisis and lenders’ tightening liquidity have severely dented internationally syndicated loan activity across the Middle East this year, bringing volumes to the lowest level since 2004. By Michelle Meineke.
The Salik financing could be a template. By Christopher Hall, Craig Nethercott, partners, and Aaron Bielenberg, Chirag Sanghrajka and Arjun Ahluwalia, associates, Latham & Watkins.
The Shuweihat 3 deal – a return to normality in the Gulf IPP finance market or a brief respite? By Harold Fairfull, managing director, Consilium.
Local is going large in the financing of Egypt Hydrocarbon Corporation’s ammonium nitrate facility. By James Bishop, chief financial officer, Carbon Holdings and Clare Kimber, energy, infrastructure and project finance practice, White & Case.
Bookbuilt IPOs are yet to take off in the Gulf region. Their complex nature is said to deter retail investors, who favour the fixed price option to the more complex and often unpredictable bookbuilding process. By Hafsa Kara.
The Gulf and the wider Middle East should be a fertile ground for private infrastructure investment. By Ivan Woods, head of infrastructure advisory, and Holly Hyde, BDO Corporate Finance (Middle East) LLP.
When policymakers in the developed economies took concerted action in late 2008 there was a widespread determination to prevent the recession turning into a prolonged period of depression. Record low interest rates, a little harmless inflation and a stiff dose of banking reform were meant to get the world economy turned round and back on a path of sustained growth. And growth was going to be the key to taking the sting out of reducing indebtedness – governments, financial institutions and consumers could all cut their borrowings without feeling too much pain.
The financial storm clouds are gathering. A credit downgrade for the US and the continuing uncertainty caused by the eurozone sovereign debt crisis have sent investors scrambling for cover. Emerging markets were remarkably robust following the credit crunch, but it is uncertain whether the decoupling can be sustained as developed markets now slow to a near halt.
India has all the right ingredients. Yet, instead of producing a delightful dish to tempt even the most sceptical of emerging markets investors, its recipe is in danger of leaving a rather bad taste.
Welcome to IFR’s inaugural Covered Bond Survey. This is the first in an occasional series published by IFR; future surveys will cover similarly core areas of the global capital markets. The surveys are conducted anonymously and are designed to offer market participants constructive insights into how specialists view the landscape, and what they view as key concerns, challenges and opportunities.
It has been a year that has seen the headlines dominated by a sovereign debt crisis in Europe. This time last year, the carnage that would be wrought by cripplingly high debt in Greece, Portugal and Ireland was already visible on the horizon. Europeans had already taken concerted action to save Greece, although the cost of those measures remained unknown – as they arguably still are today. Questions were being asked about where that left the other PIGS – Spain was still viewed in a similar light, before distancing itself, and then ultimately being drawn back in.
Few markets managed to come out of the crisis in one piece. But for covered bonds, the past few years have been different, with the asset class coming out bigger and more enhanced. Once considered a niche – even, some might argue, boring – product, the decline of other parts of the bond market have suddenly cast it into the limelight, bringing a variety of new participants into its orbit.
The politics of Europe have always been delicate for Germany. But in the last 12 months the volume of protest among Germans at having to bankroll European financial rescue packages has reached hitherto unknown levels. Many Germans are at a loss to explain why it falls to them to bail out profligate European partners in first Greece, then Ireland and now Portugal. Politicians and parties associated with the largesse bestowed upon the PIGs have already been punished at the polls and things could get worse still.
Sovereign, supranational and agency issuershave long had a habit of concentrating their borrowing in the first half of the year. But that trend seems to have accelerated in2011, with many of the larger SSA issuers having completed up to 40% of their annual borrowing targets by the end of the first quarter alone.
In little over a decade, Turkey has gone from being the sick man to the rich man of Europe. While other European countries have come through the crisis indebted, stunted and broke, Turkey has gone from strength to strength. Last year was a watershed, with growth coming in at 8.9%, inflation in low single digits and real interest rates close to zero.
It’s been a good twelve months to be a market outside of Europe and the US. With many developed nations struggling under the weight of public and private debt, most emerging markets have been arousing a lot of attention from growth-hungry investors. But some markets have emerged more than others, and Latin America is definitely home to some of the sexier examples.