GFH
GFH
GFH
Bankers expect that local and foreign investors will seek to subscribe in new global bond issuances in the Gulf region despite the recent growing political crises in the Middle East, added to a possible increase in the prices of US interest rates soon.
Bankers also believe that firms in Qatar and Dubai will launch new bond issuances in the coming few months.
It is worth noting that the Gulf region has not witnessed any bond subscriptions since the start of July owing to the usual state of calm of local investor activity during the summer season, added to the state of unrest in global markets over the Ukraine crisis. On a superficial level, markets do not seem to be readying for the wave of new bond issuances in the Gulf, which is expected to begin next month. It is expected that these issuances will include sovereign Sukuk in the emirate of Sharjah as well as USD sovereign bonds in Bahrain.
Many investors, however, believe that the geo-political atmosphere does not pose a threat to the Gulf Cooperation Council (GCC) economies, which allows entities and institutions, issuing bonds next month, to set the terms and conditions they need. Investors normally focus on the strengths of GCC economies such as major budget surpluses, current trades and other areas that distinguish them from other emerging economies.
Dhafer Nazim, regional credit analyst at JP Morgan, noted that some GCC economies, particularly Dubai, continue to attract capital that seems to be exiting less stable countries in the Middle East, Africa and Asia. It is worth noting that global bond issuances in the Middle East have shrunk by 16% compared to $22 billion in the first half of 2014, according to data by Thomson Reuters and Freeman Consulting Services. The first expected issuance will be from the emirate of Sharjah, which appointed HSBC, National Bank of Abu Dhabi (NBAD), Standard Chartered Bank earlier this year as managers for its first Sukuk issuance. This issuance is expected to reach $500 million and to be launched in early September, a banker familiar with the matter revealed, adding that DIFC Investments may launch a Sukuk issuance as well with the aim of refinancing a loan worth $1 billion. DIFC Investments is the investment arm of the company managing the Dubai Financial Market (DFM).
On another note, informed bankers revealed that Bahrain has hired four banks including Citigroup, Gulf International Bank (GIB) and Standard Chartered Bank to arrange a sovereign Sukuk issuance by the end of 2014.
The Bahrain-based Gulf Finance House (GFH) said that that it is planning to issue Sukuk worth $200 million in the coming few months to refinance its debt and finance several acquisitions. The Sukuk will be listed on NASDAQ Dubai, GFH added.
Bankers also believe that firms in Qatar and Dubai will launch new bond issuances in the coming few months.
It is worth noting that the Gulf region has not witnessed any bond subscriptions since the start of July owing to the usual state of calm of local investor activity during the summer season, added to the state of unrest in global markets over the Ukraine crisis. On a superficial level, markets do not seem to be readying for the wave of new bond issuances in the Gulf, which is expected to begin next month. It is expected that these issuances will include sovereign Sukuk in the emirate of Sharjah as well as USD sovereign bonds in Bahrain.
Many investors, however, believe that the geo-political atmosphere does not pose a threat to the Gulf Cooperation Council (GCC) economies, which allows entities and institutions, issuing bonds next month, to set the terms and conditions they need. Investors normally focus on the strengths of GCC economies such as major budget surpluses, current trades and other areas that distinguish them from other emerging economies.
Dhafer Nazim, regional credit analyst at JP Morgan, noted that some GCC economies, particularly Dubai, continue to attract capital that seems to be exiting less stable countries in the Middle East, Africa and Asia. It is worth noting that global bond issuances in the Middle East have shrunk by 16% compared to $22 billion in the first half of 2014, according to data by Thomson Reuters and Freeman Consulting Services. The first expected issuance will be from the emirate of Sharjah, which appointed HSBC, National Bank of Abu Dhabi (NBAD), Standard Chartered Bank earlier this year as managers for its first Sukuk issuance. This issuance is expected to reach $500 million and to be launched in early September, a banker familiar with the matter revealed, adding that DIFC Investments may launch a Sukuk issuance as well with the aim of refinancing a loan worth $1 billion. DIFC Investments is the investment arm of the company managing the Dubai Financial Market (DFM).
On another note, informed bankers revealed that Bahrain has hired four banks including Citigroup, Gulf International Bank (GIB) and Standard Chartered Bank to arrange a sovereign Sukuk issuance by the end of 2014.
The Bahrain-based Gulf Finance House (GFH) said that that it is planning to issue Sukuk worth $200 million in the coming few months to refinance its debt and finance several acquisitions. The Sukuk will be listed on NASDAQ Dubai, GFH added.
Source:
Mubasher
