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Saudi Arabia, the UAE, Bahrain, Kuwait, and Qatar will join the emerging market government bond indexes of JP Morgan in 2019
This move is set to help attract billions of dollars of new foreign investments in the debt instruments issued by these GCC countries that will become eligible for the EMBI Global Diversified (EMBIGD), EMBI Global (EMBIG) and EURO-EMBIG indexes, JP Morgan said in a statement.
The indexes facilitate selling bonds and reducing its borrowing costs, according to Reuters.
The inclusion will be phased in between 31 January and 30 September 2019.
Conventional bonds, as well as Islamic bonds (sukuk) will be eligible for inclusion in the indexes, however, sukuk will need to have a credit rating from at least one of the three major rating agencies to be included.
The minimum size for inclusion in the indexes is $500 million, and during the listing process, instruments will need to have a maturity date beyond March 2022, JP Morgan explained.
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