Qatari issuers led the GCC aggregate bonds and sukuk market in the first half of this year, raising a total of $19.97bn, according to Kuwait Financial Centre.
Qatari bonds and sukuk in H1 were through 47 issuances and represented nearly 32% of the total value raised in the Gulf Co-operation Council region, according to a recent report by Kuwait Financial Centre (Markaz).
The report stated that the aggregate primary issuance of bonds and sukuk by GCC entities, including central banks’ local issuances, GCC sovereign and corporate issuances, totalled $95.25bn in H1, 2018, which represents a 9.64% increase on H1, 2017.
The GCC bonds and sukuk market is composed of bonds and sukuk issued by GCC sovereign, corporate entities and financial institutions, for financing purposes in local and foreign currencies. A total of $62.57bn was raised in the GCC bonds market in H1 2018, a growth of 33.27% from $46.95bn raised in H1, 2017.
Sovereign issues continued to dominate the GCC bonds and sukuk market in H1, 2018 contributing 60.2% to the overall market with a total value of $37.68bn as compared to $24bn in H1, 2017.
Total value raised by corporate entities in the first half of this year increased by 8.45%, to $24.89bn in H1 from $22.95bn in the same period last year.
Qatar raised $12bn and Kuwait was the only GCC sovereign entity not tapping the international bond markets in H1, 2018.
Conventional issuances raised $50.17bn, or 80.19%, of the total amount raised in GCC bonds and sukuk market during H1, 2018. Sukuk raised $12.39bn, 30.84% lower compared to $17.93bn raised in H1, 2017 and represented a share of 19.81% of the market in H1 2018.
The government sector accounted for the largest amount raised during H1, 2018, with $37.68bn, representing 60.2% of the total amount raised as compared to $24.89bn issued in H1, 2017, Markaz said.
The financial sector followed with $18.29bn representing 29.26% of total market raised through 140 issues.
Issuances with tenures of less than five years raised the highest amount, $25.7bn, through 132 issuances, representing 41.1% of the total amount raised.
Maturities of 11-30 years raised $18.65bn, representing 29.8% of the market, Markaz said.
GCC bonds and sukuk issuances during H1, 2018 had issue sizes ranging from $1mn to $6bn.
Issuances with principle amounts greater than or equal to $1bn raised the largest amount of $41.83bn, representing 66.85% of the total value.
Dollar-denominated issuances led the GCC bonds and sukuk market, raising $52.58bn (84.19% of the total amount raised) through 113 issuances, Markaz noted.
As of June 30, the total amount outstanding of corporate and sovereign bonds and sukuk issued by GCC entities was $463.29bn. Government issuances made up the majority of the total amount outstanding with $236.02bn, or 50.9% of the total amount. The financial sector led the corporate sector with a total amount outstanding of $104.37bn, or 22.5 % of the total amount, Markaz said.
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