SOVEREIGN DEBT RESTRUCTURING | MASTERCLASS

A deep dive masterclass on sovereign debt restructuring, to be conducted virtually by Asian high yield bond expert Florian Schmidt.

30 June 2022 (Thu), 5pm Singapore/HK time

The Emirate of Sharjah raises $1.25bn via new bonds priced on Thursday. It raised:

  • $750mn via 12Y bonds at a yield of 3.625%, 215.5bp over Treasuries and 25bp inside initial guidance of 3.875%
  • $500mn via 30Y bonds at a yield of 4.75%, 249.8bp over Treasuries and 25bp inside the wide end of initial guidance of 4.875-5%

The bonds will be issued by Finance Department Government of Sharjah with an expected rating of Baa3/BBB- in line with the issuer. The 30Y bonds were priced 14bp over its older 4% bonds due July 2050.

Emirati sovereign wealth fund Mubadala followed Saudi Arabia in selling euro-denominated bond on Thursday. It raised:
  • €600mn via 6Y bonds at a yield of 0.383%, 65bp over Mid Swaps and 20bp inside initial guidance of MS+85bp area
  •  €500mn via 13Y bonds at a yield of 1.075%, 90bp over Treasuries and 20bp inside the wide end of initial guidance of MS+105-110bp

The bonds will be issued by MDGH GMTN (RSC) Ltd and guaranteed by Mamoura Diversified Global Holdings PJSC. The bonds are expected to be unrated while the issuer has a Aa2/AA/AA rating. This is Mubadala’s first euro denominated issuance since 2012 and comes after neighboring Saudi raised €1.5bn via euro bonds late last month, which marked the GCC’s first negative yielding bond.

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