MIDEAST DEBT-Gulf bonds likely to set new record in 2021 amid budget squeeze | Reuters
International debt sales from the six-member Gulf Cooperation Council are likely to notch another record year in 2021 as governments need to fill wider deficits and corporates look to grab money on the cheap amid low rates.
The oil-rich region saw a second consecutive year of record international bonds, topping $100 billion, as issuers’ finances were battered by the COVID-19 pandemic along with low oil prices, with a few issues still possible before year-end.
“I think overall, the market will grow. We can easily add $7-10 billion more to 2020 total issuance,” said Khalid Rashid, head of debt capital markets for the Middle East and North Africa at Deutsche Bank.
S&P Global Ratings said in July GCC government balance sheets are expected to continue to deteriorate up until 2023.
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