This year has been a busy one for bond issuers in the Middle East. According to Dealogic, a data provider, sovereign, corporate and financial issuers in the region have raised more than $44bn in the year to date, compared with $14bn in 2008 and $27bn in 2007, the previous best.
Last month Qatar issued a mammoth $7bn, the largest emerging market bond on record. The offer was raised from $5bn and even then was nearly four times subscribed. The year also saw a bumper local currency offering by Saudi Electricity for nearly $1.9bn and the introduction of an electronic market for trading sukuk, or Islamic bonds, in the kingdom.
Regional issuers will be hoping that the events of the past three weeks have not sullied the reputation of the Gulf and that a pipeline can quickly be re-established. Creditors of Dubai were severely rattled last month by Dubai World’s unexpected call for a moratorium on debt repayments. By most estimates companies in Abu Dhabi, such as Mubadala and the Tourism and Development Company, and others in Qatar are looking to come back to the market to fund ambitious development projects.
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