GCC bond issues decline 28pc in 2010
Manama, May 5, 2011
Bond and sukuk issues across the GCC totalled $57 billion in 2010, marking a decrease of 27.6 per cent over 2009, said a report.
October witnessed the highest issuance frequency and value with 23 issuances raising a total of $9.1 billion, according to research from the Kuwait Financial Centre.
A total of $27.2 billion was raised by the central banks of Kuwait, Bahrain and Oman during 2010, with the Central Bank of Kuwait raising the highest amount at $21.8 billion through 60 issuances.
The GCC bonds and sukuk market is composed of sovereign and corporate issuances.
During 2010, a total of $29.9 billion was raised by sovereign and corporate bond and sukuk issuances, compared to $64.9 billion in 2009. Corporate issuances dominated the market during 2010 with $20.9 billion representing 70.2 per cent of the total amount raised.
Sovereign issuances raised $8.9 billion representing 29.8 per cent of the total amount raised. The value of corporate issuances almost maintained its 2009 level.
However, the number of issuances increased from 37 to 42, with Emirati corporate issuances dominating the market at $6.2 billion through 19 issuances.
The number of sovereign issuances decreased in 2010 in comparison to 2009 from 22 to 12 issuances. This in effect decreased the value of total GCC sovereign issuances by 38.5 per cent.
Conventional bond issuances raised the greatest amount during 2010 at $23.4 billion, representing 78.5 per cent of the total amount raised through 45 issuances, compared to $6.4 billion for sukuk issuances through nine issuances.
As at December 31, the total amount outstanding of corporate and sovereign bonds issued by GCC entities was $157.4 billion.
Corporate issuances make up the majority of the total amount outstanding with $99.6 billion, or 63.3 per cent of the total amount. Sovereign issuances amount to $57.8 billion or 36.7 per cent of the total amount.
Of the amount outstanding $102.2 billion, or 65.0 per cent, will mature by the end of 2015. – TradeArabia News Service