Saudi Arabias bond market grows 29% in H1: Debtwire Par

The second quarter dominated, representing 70% of bond volumes for the period, a result of notable deals such as USD 3.1bn and USD 7.5bn of bonds issued from the Government of Saudi Arabia.

Loan market of the GCC nation witnessed a drop during the first six months of 2019, compared to H1-18 levels with volume totalling $9.8 billion from 13 deals.

“Despite having twice, the number of deals compared with 1H18, volumes represented a 53% decrease year-on-year from 1H18,” the report said.

This decrease is reflective of the overall slow issuance in the region and that the surrounding regions have claimed more market share.

Moreover, business activity in the kingdom also slowed with the highly anticipated deal from Aramco pushed back to 2021.

As for loan refinancing activity, it reached $3.7 billion during the six-month period ended June, representing a significant drop of 80% from H1-18.

“Some of the issuances has been moved to more real estate projects, where government economic reform plans to increase funding by 2030 are already being felt,” Debtwire Par said.

By the end of June, project financing activity stood at $600 million of worth volume, representing a 100% year-on-year increase from the same period of the prior year.

This growth reflects goals set out by Vision 2030, which includes concentrated efforts on infrastructure and privatisation.