Gulf Arab companies have lagged state-linked firms in issuing bonds, held back by the credit crunch and regional strife, but with about $60bn in refinancing coming up by 2012, more could soon hit the road to lure global investors.
Corporates that tap debt markets can expect to meet healthy demand, due in part to the dearth of issuance compared with government-related firms and the prospect of high coupon rates, investors say.
Portfolio managers holding bonds issued by Kuwait Projects Co (KIPCO) last July have already made a cash return of about 11 percent on the investment. KIPCO is the biggest investment firm in Kuwait yet it offered its bond at an alluring 9.5 percent.
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