MENA sells USD11.4bn of conventional bonds in 1Q12
More conventional bonds were issued in MENA in the first quarter of 2012, but the value retreated as sukuk appetite increased, writes Joey Geadah of Zawya.
ZAWYA
April 10, 2012
11 April 2012 Middle East and North Africa (MENA) countries sold a combined total of USD 11.4 billion of conventional bonds in 1Q12, down 13% from 1Q11. Total number of issuances increased; however, their aggregated value was lower than the first quarters of previous years, according to Zawya's first MENA Bonds Quarterly Bulletin.
The slight regression in bond activity possibly reflects a combination of the ongoing Eurozone crisis and the Arab Spring, which are shadowing any burst of activity in the MENA bonds market.
The breakdown of countries shows that the UAE was the largest issuer in 1Q12 with USD 4.4 billion or 38% of the total, followed by Kuwait, Qatar and Egypt. The GCC grabbed the biggest portion of overall bonds issued in the region via UAE and its peer nations.
The Levant was almost absent in this quarter, with Jordan being relatively the only active market through treasury bonds and bills and with Syria being shattered with recent uprisings. The Lebanese ministry of finance sold a USD 950 million Eurobond via dual issuances at the end of March, which were well received by investors.
Sovereign issuances constituted about 43%. The Lebanese Eurobond lead the Levant to surpass North Africa, a region manifested via abundant Egyptian Treasury issues and a few domestic Moroccan and Tunisian corporate bonds.
