Tuesday 24 December 2013

MIDEAST DEBT-Gulf issuance to surge in 2014, Abu Dhabi may return | Reuters

MIDEAST DEBT-Gulf issuance to surge in 2014, Abu Dhabi may return | Reuters:

"* Fed policy jitters, Abu Dhabi's absence cut activity this year

* New issuance could rise by a third or more in 2014

* Heavy Abu Dhabi obligations coming due may be refinanced

* Liquid loan market may divert some interest from bonds

* But more first-time corporate issuers expected in Gulf

By David French

DUBAI, Dec 24 (Reuters) - Bond issuance from the Gulf Arab region is set to surge next year on the back of heavy infrastructure spending and refinancing needs, while the Abu Dhabi sovereign may return to the market after an absence of nearly five years.

The region's issuance of conventional bonds and sukuk fell to $28.97 billion this year from $36.90 billion in 2012, according to IFR, a Thomson Reuters unit.

That was partly because of jitters about the U.S. Federal Reserve's plans to cut its monetary stimulus, which widened bond spreads globally, and partly due to both Abu Dhabi and its government-related entities (GREs) staying away from the market."

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