HSBC Holdings Plc, which last year was the top arranger for bond sales in the Middle East for the first time in more than half a decade, has another busy stretch coming up as borrowers race to markets ahead of looming U.S. interest-rate hikes.
Following $122 billion in debt sales in 2021, governments and companies will probably front-load much of their funding needs this year to the first few months in anticipation of monetary tightening by the Federal Reserve, according to Khaled Darwish, the Dubai-based head of debt capital markets at HSBC.
More than $50 billion of bonds and sukuks are set to mature this year, which could set off a wave of refinancing while borrowing costs remain low, he said.
“January and February will be busy,” Darwish said in an interview. “We expect volatility throughout the year, especially with uncertainty around interest-rate volatility, inflation and the potential downward revisions to economic growth in an ongoing pandemic.”
HSBC last year leapfrogged rivals in underwriting debt in the Middle East and North Africa, or MENA. Standard Chartered Plc, JPMorgan Chase & Co., Citigroup Inc. and First Abu Dhabi Bank PJSC rounded off the top five.
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