Gulf debt instruments, Eurodollar bonds hit $15.9bln – report

Gulf debt instruments, Eurodollar bonds hit $15.9bln – report

The GCC issues of local debt instruments and US dollar-backed Eurobonds jumped to $15.90 billion in the fourth quarter (Q4) of 2022, compared to $11.80 billion in Q3-22 and $14.70 billion in Q2-22.

A report by the Central Bank of Kuwait (CBK) showed that the value of debt instruments payable by Gulf countries rose marginally to $607 billion by the end of Q4-22 when compared to a quarter earlier.

Meanwhile, the number of new issues dipped in most of 2022 owing to higher debt servicing costs and lower financing needs to fulfil budget deficit, given the increase in oil prices and commitment to medium-term fiscal reforms.

Saudi Arabia and the UAE dominated the lion’s share of Q4-22 issues, with the Saudi government raising $5 billion through the first medium-term Euro-denominated bond programme, which was issued about one year ago and comprises two tranches of $2.50 billion each.

In addition, the Saudi government continued its domestic Sukuk programme with $3.30 billion new issues in Q4-22, compared to $2.10 billion a quarter earlier. The Saudi Public Investment Fund (PIF) also raised $3 billion through a triple-tranche green bond issuance.

In the UAE, Abu Dhabi sovereign wealth fund Mubadala sold $1 billion in Formosa bonds.

GCC Sovereign Bonds Yields

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