Gulf Arab Energy Producers Issue Record Debt for Expansion - Bloomberg

Gulf Arab Energy Producers Issue Record Debt for Expansion - Bloomberg:

"Gulf Arab energy companies issued record debt this year as producers opted to exploit lower borrowing costs to fund expansion plans.

Oil and gas producers, pipeline operators and refiners in Kuwait, the United Arab Emirates, Saudi Arabia, Oman, Bahrain and Qatar borrowed $28.7 billion through bonds and syndicated loans in 2017, eclipsing the previous high set two years earlier, according to data compiled by Bloomberg.

Those companies borrowed about $71.4 billion in the past three years, more than twice the amount in the previous period.


The annual average of the J.P. Morgan Middle East Composite Index’s debt yield, an indication of borrowing rates in the region, declined 12 basis points to 4.58 percent in 2017, a two-year low. Global energy demand will jump 35 percent by 2040, from 2015, OPEC estimates. Its Secretary-General Mohammad Barkindo says oil investment is needed now to meet that growth and to make up for declining production at older fields."



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