Page 12 - Arabian Business

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The GCC and international debt

Bond issuance is expected to continue this year as governments and businesses look to boost liquidity

Kuwait Saudi Arabia Oman Emirates Airlines Bahrain

Kuwait is weighing plans Saudi Arabia has been Earlier in January, Oman’s Emirates, the world’s biggest In September, Bahrain
to sell dollar-denominated struggling to close its government issued a airline by international raised $3bn, about 10
bonds, joining other GCC budget defi cit since oil $6.5bn bond – its largest passenger numbers, is percent of its economic
states also said to be prices collapsed; for 2018, ever. Oman issued its fi rst negotiating with banks about output, in a three-part
considering sales, according the shortfall might exceed triple-tranche bond last raising as much as $1bn international bond sale that
to people familiar with the $87.5bn. Raising debt via year, raising a total of $5bn through an Islamic bond may help narrow a gap in
matter. It is believed that the bonds is one way to address in fi ve-, ten- and 30-year sale that could materialise its fi nances left by a more
bonds are likely to be in line the issue and it’s believed notes. The bonds are a in the fi rst half of this year. than 50 percent drop in oil
with – or even higher than that 12 percent of the defi cit sign of increasing investor Emirates has been a regular prices since 2014. The sale
– Kuwait’s last issuance of would be plugged by a confi dence in the Gulf’s borrower in the aircraft- includes an $850m Islamic
$8bn in March 2017. $20bn bond sale this spring. energy exporting countries. fi nancing loan market. bond, according to reports.
12 Vol. 19/04, January – February 2018