THE TOTAL value of US dollar-denominated bond issues from Gulf Co-operation Council (GCC) countries is expected to hit $37 billion this year, dominated by sales from Dubai, according to a new report.
The estimated figure is slightly higher than the $34 billion of total dollar issuance in 2012, the research report from Standard Chartered said.
Contrary to the normal trend in which Abu Dhabi Inc dominates GCC issuance, we expect Dubai Inc to dominate this year, the bank said, adding that Dubai names were expected to issue a further $5 billion in the rest of this year.
The bank said its estimates did not take into account any potential issuance from regional telecommunications operators Ooredoo (formerly Qatar Telecom) and Etisalat to fund a possible buyout of Maroc Telecom.
Global bond issues from GCC states so far this year are estimated to be five per cent higher year-on-year.
Much of that issuance has been dominated by Dubai, including a two-part $1.25 billion issue by the government, a $1 billion issue from state utility Dubai Electricity and Water Authority (DEWA), and $1.75 billion from flagship airline Emirates in two separate sales. Including bonds from Dubai-based banks, total year-to-date issuance from the emirate, which has benefited from a return of investor sentiment and an economic revival in some sectors, stands at $5.75 billion.
Standard Chartered said it expected Abu Dhabi-related names to issue about $8.5 billion, dominated by quasi-sovereign entities, potentially state investment fund Mubadala Development Company and Tourism Development Investment Company (TDIC), which have not tapped markets recently.
The bank also predicted the Qatar sovereign would issue $4 billion, nearly half of total anticipated issuance from that country.
