Qatar saw new debt issuances totalling $21.9bn in 2021, with third quarter (Q3) accounting for chunk of the bond and sukuk issuances, according to National Bank of Kuwait Economic Research.
In the third quarter of last year, Qatar recorded new debt issuances worth $17.9bn, National Bank of Kuwait said in an update.
In the first quarter (Q1), debt issuances in Qatar totalled $1.7bn and $2bn in second quarter (Q2) and $1.1bn in fourth quarter (Q4).
According to National Bank of Kuwait, the GCC saw a “record” $105bn in debt issuances in 2021. In the fourth quarter (Q4) the bloc saw Eurobond and domestic issuance worth $20bn.
“GCC issuances in 2021 were supported by deficit financing needs and low borrowing costs, but may moderate in 2022 on higher oil prices, rising borrowing costs and easing fiscal pressures,” National Bank of Kuwait noted.
In the third quarter of last year, the GCC saw debt issuances totalling $29bn.
“The fourth quarter slowdown is seasonal and most likely due to sovereigns having met their targets for the year. Issuances were dominated by sovereigns,” the update said.
Overall, 2021 was a record year for regional issuance, amounting to around $105bn, raising gross outstanding debt to an all-time high of $614bn as issuers took advantage of historically-low borrowing costs, it said.
GCC issuance could remain relatively strong in 2022 on continued financing needs, but will likely ease amid higher oil prices and smaller deficits, National Bank of Kuwait said.
Further, a brisk pace of policy normalisation by the US Federal Reserve could push GCC yields higher over the medium term, increasing borrowing costs and leading to a softer pace of GCC debt issuance.
GCC medium-term sovereign bond yields, with the exception of Oman, rose in Q4, 2021, influenced by the rise in global bond yields that started in November, National Bank of Kuwait said.
The rise in GCC yields accelerated in January, leading to a wider spread versus US treasuries, perhaps reflecting a higher risk premium in response to a more hawkish Fed.
Quarterly yield increases were led by Qatar and Kuwait, up 32 bps and 29 bps quarter-on-quarter (q-o-q), respectively.
According to National Bank of Kuwait, GCC yield prospects will continue to depend on the regional/global economic recovery, direction of global yields, virus containment developments, in addition to oil price movements.
“GCC yields could continue to rise in 2022 in line with global yields which are poised for further increases given factors such as monetary policy normalisation and likely continued inflationary pressures,” National Bank of Kuwait said.
In the third quarter of last year, Qatar recorded new debt issuances worth $17.9bn, National Bank of Kuwait said in an update.
In the first quarter (Q1), debt issuances in Qatar totalled $1.7bn and $2bn in second quarter (Q2) and $1.1bn in fourth quarter (Q4).
According to National Bank of Kuwait, the GCC saw a “record” $105bn in debt issuances in 2021. In the fourth quarter (Q4) the bloc saw Eurobond and domestic issuance worth $20bn.
“GCC issuances in 2021 were supported by deficit financing needs and low borrowing costs, but may moderate in 2022 on higher oil prices, rising borrowing costs and easing fiscal pressures,” National Bank of Kuwait noted.
In the third quarter of last year, the GCC saw debt issuances totalling $29bn.
“The fourth quarter slowdown is seasonal and most likely due to sovereigns having met their targets for the year. Issuances were dominated by sovereigns,” the update said.
Overall, 2021 was a record year for regional issuance, amounting to around $105bn, raising gross outstanding debt to an all-time high of $614bn as issuers took advantage of historically-low borrowing costs, it said.
GCC issuance could remain relatively strong in 2022 on continued financing needs, but will likely ease amid higher oil prices and smaller deficits, National Bank of Kuwait said.
Further, a brisk pace of policy normalisation by the US Federal Reserve could push GCC yields higher over the medium term, increasing borrowing costs and leading to a softer pace of GCC debt issuance.
GCC medium-term sovereign bond yields, with the exception of Oman, rose in Q4, 2021, influenced by the rise in global bond yields that started in November, National Bank of Kuwait said.
The rise in GCC yields accelerated in January, leading to a wider spread versus US treasuries, perhaps reflecting a higher risk premium in response to a more hawkish Fed.
Quarterly yield increases were led by Qatar and Kuwait, up 32 bps and 29 bps quarter-on-quarter (q-o-q), respectively.
According to National Bank of Kuwait, GCC yield prospects will continue to depend on the regional/global economic recovery, direction of global yields, virus containment developments, in addition to oil price movements.
“GCC yields could continue to rise in 2022 in line with global yields which are poised for further increases given factors such as monetary policy normalisation and likely continued inflationary pressures,” National Bank of Kuwait said.