An oversubscribed bond offering from a small Emirati bank shows that although the Gulf bond market remains subdued, there’s still demand out there, particularly for sharia-compliant investments.
Sharjah Islamic Bank had announced in March that it would seek capital to fund an expansion of the business. Initial reports suggested demand for the issue was strong.
Issuance in the GCC so far this year have been largely limited to sovereigns or sovereign-backed entities, partially because unrest in the Middle East raised yields, although yields have since fallen back to pre-crisis levels. Of corporate issuers, only highly-rated issuers are said to be looking at the market.
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