MIDEAST DEBT Gulf sovereigns seen issuing less in 2022, corporate bond sales to rise | Reuters
Overall debt issuance from the Gulf is expected to decline next year, as sovereigns issue less bonds due to improved government finances, but a rise in corporate debt sales will cap the downside, bankers said.
The trend will continue from this year, when corporate bond sales outpaced supply from Gulf sovereigns, whose finances have been buoyed by lofty oil prices. Sovereign issues dropped by 13.6% year-over-year in 2021 while corporate debt sales climbed 8.1%, according to Kuwait-based asset manager Kamco Invest.
"If we remain at these somewhat elevated oil price levels, then the sovereign funding requirements should go down," one of the bankers said.
Global crude oil futures have risen nearly 40% so far this year and are currently around $72 a barrel as the global economic recovery fuelled oil demand.
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