The aggregate primary issuance of bonds and sukuks in the Gulf Cooperation Council region totalled $97.7bn in 2013, up 14.5% on 2012, Kuwait Financial Centre (Markaz) has said in a report.
The month of March predominated in terms of issuance frequency with some 44 issuances. However, October witnessed the highest value as $13.5bn was issued, representing 13.8% of the total amount issued, through 29 issuances.
Central Bank Local Issuances (CBLI) are debt securities issued by GCC central banks in local currencies and maturities of less than one year, to regulate the levels of domestic liquidity. A total of $51.5bn was raised by the central banks of Kuwait, Bahrain, Qatar, and Oman during 2013, with the Central Bank of Kuwait raising the highest amount, $25.4bn, representing 49.3% of the total CBLI amount through 66 issuances. The Qatar Central Bank raised $16.2bn, a considerable increase of 172.55% from $5.94bn raised in 2012.
The GCC bonds market is composed of sovereign and corporate bonds and sukuk issuances denominated in local and foreign currencies. A total of $46.1bn was raised by sovereign and corporate bond and sukuk issuances in 2013, an increase of 2.3% from the total value raised in 2012, Markaz said.
Issuances by UAE entities raised the largest amount in 2013 representing 41.4% of the total amount.
Saudi Arabian entities raised the second highest amount during 2013- $17.2bn while Qatari entities raised $6.7bn, Markaz said.
© Gulf Times 2014
