Dubai, UAE, 5 October 2015 - Arqaam Capital ("Arqaam"), the specialist emerging and frontier markets investment bank, expects GCC banks to issue $43 billion of Basel III compliant debt by 2019 in order to improve the quantity and quality of their capital base.
Jaap Meijer, Managing Director- Research at Arqaam Capital said: "GCC banks are on the verge of issuing new Basel III compliant bonds with improved loss absorption features. This should increase capital buffers and enhance the GCC banking sector's ability to absorb shocks arising from potential financial and economic stress. The new regulatory framework requires banks to not only increase capital buffers, but also to diversify the structure of these buffers and enhance its quality". "Arqaam Capital estimates that GCC banks will issue $17 billion of Additional Tier 1 bonds and $26 billion of Tier 2 bonds in order to optimize their balance sheets and improve capital positions."
Basel III is a set of reform measures designed to improve the regulation, supervision and risk management within the banking sector. Banks have until the end of 2018 to comply with the new capital requirements.
Arqaam actively participates in the MENAT and Sub Saharan African fixed income markets with global distribution capabilities. Arqaam is a market-maker and participant in the primary and secondary markets for a broad variety of fixed income securities, including government debt, corporate bonds , Islamic bonds (Sukuk), derivatives and foreign exchange.
About Arqaam Capital:
Arqaam Capital is a specialist emerging markets investment bank, bringing regional and international product offerings to the emerging markets. Arqaam Capital combines international best practice with expertise in the markets in which we operate. Our primary role is to provide financial intermediation and create investment opportunities for emerging markets investors looking to invest in their own markets and abroad, as well as international investors seeking opportunities in target emerging markets. Arqaam Capital operates out of three hubs, namely the Dubai International Financial Centre (DIFC), Cairo and Johannesburg. Arqaam Capital has ten business lines - Corporate Finance, Asset Management, Cash Equity, Credit Trading, Equity Derivatives, Capital Markets Advisory, Infrastructure, Principal Finance, Treasury and Custody. In addition, Arqaam provides in-depth research on 260 listed Middle East and Africa (MEA) companies across 26 countries and a wide-range of sectors, including the largest global coverage of MENA equities.
For more information, please contact:
Arqaam Capital
Mohamed El Khalouki
Tel: +971(0)4 507 1912
Email: mohamed.elkhalouki@arqaamcapital.com
Edward Moore (Brunswick)
Tel: +971 4 446 6270
arqaam@brunswickgroup.com
© Press Release 2015
