USD34bn GCC bonds issued last year; 2012 pipeline healthy
GCC entities issued USD34bn bonds in 2011, slightly down from 2010. Adnan Halawi, Zawya's Fixed Income Analyst, attributes the decline to the effects of the Eurozone debt crisis, the Arab Spring and a shift to sukuk.
ZAWYA
January 10, 2012
11 January 2012
GCC entities issued USD34bn bonds in 2011, slightly down from 2010. Adnan Halawi, Zawya's Fixed Income Analyst, attributes the decline to the effects of the Eurozone debt crisis, the Arab Spring and a shift to sukuk.
GCC BONDS REVIEW: 2011
2011 was a good year for the Gulf bonds market, but not the best on record. Data compiled by Zawya Bonds Monitor show an 11% decrease in total bonds issued in the GCC during 2011 to USD 34 billion from USD 38 billion in 2010. These figures include all corporate and sovereign bonds out of the GCC with tenors of one year and above.
The decline could be attributed to many factors including the Arab Spring - especially in Bahrain - the Eurozone debt crisis, and an increasing interest by issuers to sell debt using Shariah-compliant channels like sukuk. Yet, regional issuers benefited from international investors' strong appetite for their debt and obtained high ratings from global rating agencies, achieved oversubscription, and announced new programs even if some were shelved to 2012.
