Tuesday 29 January 2019

Fixed income: MENA region bond issuance forecast at $80-85bln for 2019 - report | ZAWYA MENA Edition

Fixed income: MENA region bond issuance forecast at $80-85bln for 2019 - report | ZAWYA MENA Edition:

The amount of U.S, dollar-denominated bonds and sukuk issued in the Middle East and North Africa (MENA) is likely to reach $80-$85 billion in 2019 - similar to the $84 billion of issuance recorded last year, according to a new study, but there is potential for this figure to climb higher if Saudi Aramco embarks on its anticipated journey into debt capital markets with a maiden $10 billion bond issuance.

Speaking at the launch of a white paper on the MENA fixed income market, Parth Kikani, director of fixed income at Emirates NBD Asset Management, said that the $84 billion of hard currency issuance which took place last year was a decline on the $100 billion issued a year earlier, but the market still witnessed some "jumbo" issuances, including a $12 billion, multi-tranche issuance by the State of Qatar in April and an $11 billion, multi-tranche sovereign issuance by Saudi Arabia in the same month.

“Sovereign issuance has been the dominant factor in 2018. While there was so much issuance, the deals were well-covered - on an average 2-2.5 times oversubscribed,” Kikani said.

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