Saudi Basic Industries Corp.’s bond yield dropped to a record as a scarcity of dollar-denominated securities in Saudi Arabia draws investors seeking exposure to the country with the Middle East’s lowest credit risk.
The yield on the world’s biggest publicly traded chemicals maker’s 3 per cent securities due November 2015 is down 30 basis points since hitting a four-month high on August 21. It reached a record 1.988 per cent on September 21. It was little changed today. The yield on investment-grade Middle East debt has fallen 19 basis points in the period to 3.36 per cent, HSBC/Nasdaq Dubai’s Middle East Investment Grade U.S. Dollar Sukuk/Bond Index shows.
Two Saudi issuers, including Saudi Electricity Co., sold $2.5 billion of dollar bonds this year, compared with $9.6 billion raised from 14 sales in the UAE, a fellow member in the Gulf Cooperation Council, data compiled by Bloomberg show. Sabic, whose shares are underperforming the Saudi index, benefits from this dearth in dollar notes even as revenue is hurt by declining global chemical product prices.
No comments:
Post a Comment