Sovereign

GCC Bond issuances witness an uptick in H1 2019

Bond markets in the GCC witnessed a pick-up in debt issuances during the first half of 2019 after a subdued close in the last two quarters of 2018. The rise in oil prices during the first nine months of 2018 boosted the oil revenues for GCC economies, reducing the need to tap the bond markets. Consequently, Sovereign issuances dried up in the second half of 2018. Since the start of 2015 (As of 23rd Sep 2019), the UAE and Saudi...

What’s fuelling appetite for Gulf bond issues?

This article was originally published in Argaam The bond market in the GCC region saw bond issuances to the tune of USD 70 bn, an all-time high issued amount in the year 2017 (https://www.thenational.ae/business/markets/strong-appetite-for-gcc-credit-forecast-for-2018-1.699843) The first quarter of 2018 has already seen issuances worth USD 16.8 bn, mostly by Oman (39% approx.) and Qatar National Bank (22% approx.). Oman has managed to sell its largest ever sovereign bond worth USD 6.5 bn in face of multiple downgrades in credit ratings...

Establishing GCC Yield Curve – More Important now than ever!

A number of GCC corporates have been active in the debt markets, especially in the recent past, as the bank lending had been constrained while the financial environment offered money at attractive lower interest rates. Considering the surge in issuances and the need for development of domestic debt market many have been advocating for the need to establish a domestic sovereign yield curve that shall help the GCC companies to raise funds at a cheaper rate. Presence of sovereign yields...