Sunday 6 February 2011

Bonds to Lead Gulf Debt Refinancing, Standard Chartered Says - Bloomberg

Gulf Arab countries are likely to raise at least half their debt capital from bond sales this year as banks are still reluctant to lend, the head of capital markets for the Middle East at Standard Chartered Plc said.

“The current trend of a lot of the loans being refinanced in the bond market will continue,” Deepak Kohli said in an interview in Dubai on Feb. 3. “If the bond markets continue to be conducive, I would think the bond and loan volumes will be around 50-50, if not favoring the bond market a little bit.”

Governments and companies in the six-nation Gulf Cooperation Council, which includes oil-rich Saudi Arabia, the United Arab Emirates and Kuwait, raised $32.6 billion from 58 bond sales in 2010, according to data compiled by Bloomberg. That was 40 percent of the $80 billion raised in debt capital last year, data provided by Standard Chartered show.

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