By: Bedour Al Raee
Dubai – Mubasher: The UAE’s government and companies increased their debt instrument issues to $39 billion during 2017 from $24.26 billion in the previous year, according to a survey conducted by Mubasher.
In 2017, the UAE-based companies issued bonds and sukuk with a total value of $26.6 billion and $3.26 billion, respectively, the survey found.
Mubadala’s $1.5 billion bonds
Mubadala’s $1.5 billion deal was the highest bond issue in 2017. The amount was divided into two tranches; an $850 million tranche with seven-year maturity, and a 12-year maturity $650 million tranche.
Abu Dhabi’s government announced in October that it had raised $10 billion after the completion of the sale of public bonds.
The total value of sukuk issues is expected to range between $60 billion and $65 billion in 2017 versus $67.4 billion in 2016, Mohamed Damak, the global head of Islamic finance within S&P Global Ratings commented.
Some investors attribute the decline in sukuk issues to the shortage of liquidity at some of the GCC’s banks, Damak stated.
A federal law on public debt, will allow the UAE government to issue public debt instruments on a federal scale, was scheduled to come into effect in the nation by the end of 2017.
Translated by: Muhammad Khalid
