HSBC leads in major debt issues in the Middle East

1. Islamic Development Bank sukuk:

- Size: $850m
- Tenor: Five years
- Price: 77 basis points over US Treasuries
- Order Book: $2bn (2.4 times oversubscribed)

- Distribution:

Asia: 30%
UK: 15%
Europe: 20%
Mena: 35%

- Investor Type:

Banks and Treasury: 40%
Central Banks/Reserve Managers: 21%
Fund Managers: 34%
Insurance Funds: 5%

Mohammed Dawood, Director Debt Capital Markets, HSBC Amanah, said:

"IDB is a transaction with several notable factors: First, IDB has successfully placed its sukuk during Ramadan, traditionally a period when the Middle East markets are very quiet. Second, there was a strategic objective to broaden the investor base for this rare borrower, which is shown vividly by the global distribution profile, included a large portion from investors that have not invested in paper from this issuer before. All of which provides further evidence of the re-opening of the sukuk market in 2009, and the strong international interest that sukuk are receiving from investors all over the world."

2. Abu Dhabi National Energy Company (TAQA) Reg S/144a bond issue:

- Size: $1.5bn (in two tranches)
- Tenor: Five years/Ten years
- Price: 5 year tranche: 250 basis points over US Treasuries / 10 year tranche: 287.5 basis points over US Treasuries
- Order Book: $12bn (8 times oversubscribed)

- Distribution:

5 year
Middle East: 26%
Asia: 16%
Europe: 33%
US: 25%

10 year
Middle East: 8%
Asia: 15%
Europe: 40%
US: 37%

- Investor Type:

Banks and Treasury: 32%
Central Banks/Reserve Managers: 10%
Hedge Funds: 16%
Insurance Funds: 42%

Andrew Dell, Head of CEEMEA Debt Capital Markets, HSBC, said, "Taqa is a well known borrower who has again a spectacular success with a well priced and very swiftly executed deal. The virtue of preparation and decisive intra day focus came on the back of a pre-summer investor update roadshow. Investors gained confidence from the clear guidance on total size all of which contributed to the heavy oversubscription. Bonds traded up solidly into Thurs."