Debt Capital Markets (DCM) plays a key role in supporting the financing needs of the Bank's client base within the Gulf. Within DCM, the key objective is to identify new financing solutions through bond issuance in terms of product, currency and maturity whilst also looking to establish new sources of liquidity.

Product focus encompasses both conventional and Islamic based financing where the latter is playing an increasingly significant role within the region. Islamic bonds, or more specifically Sukuks, are representing a growing portion of total bond issuance within the Gulf.

Both conventional and Islamic bonds can either be issued on a stand alone basis or through the arrangement of an actual programme in the event that there is expected to be a regular issuance of bonds. In order to fully optimise investor liquidity, an issuer should obtain an external credit rating prior to approaching the debt capital markets.

DCM has a specific ratings advisory team who would work closely with any company wishing to tap the debt capital markets. They would provide top quality advice with a view to maintaining a direct interface with the ratings agency in order to fully prepare and assist the company throughout the whole rating attainment process.

Having assisted with the ratings advisory process, DCM would then work closely with the issuer in terms of preparing for the launch of any bond transaction whilst also accompanying the company on any roadshows to meet specific investors.

Recent bond issuance mandates include:-

• Saad Trading – US$ 650,000,000 Sukuk Issue


• United Real Estate Company – US$ 100,000,000 Sukuk Issue


• National Industries Group – US$ 475,000,000 Sukuk Issue

From the mandates shown, it can be clearly seen that there is a growing focus towards Islamic financing. In the near future, it is highly likely that Sukuks will, for the first time ever, exceed the annual issuance of conventional bonds for issuers from the Gulf region.

Common Debt Platforrm

On the back of the development of a strong business franchise within the Gulf region for both Structured Finance and Fixed Income, a new initiative was created in September 2007 – the establishment of a common debt platform.

A new Debt Capital Markets team was created which has responsibility for the complete debt origination business within the Gulf. A key requirement is to service our client needs as efficiently and effectively as possible which resulted in the merger of both the syndicated loan and bond origination teams.

From the client's perspective, there is now one focal point within BNP Paribas for debt raising activities within the region. Going forward, the main objective is to focus more closely on the financing needs of our clients with a view to supporting them across a broader debt product spectrum.

The team is headed by Mark Waters who is based in the Bahrain regional office. The key contacts are:-

Mark Waters – Head of Debt Capital Markets, Middle East
Tel: +973 17 525 033
Cell: +973 3 978 0005
E-mail: mark.waters@bnpparibas.com