Markaz: Value of GCC bonds & sukuks at $24.2 b in H1

03 Aug 2010

(MENAFN) A report issed by Kuwait Financial Centre (Markaz) said that the value of GCC bonds and sukuks issued during the first half of 2010 fell by 32 percent to $24.2 billion compared to the corresponding period of last year, Khaleej Times reported.

The report said that sovereign/government issuances made up for 71 percent of the amount raised at $17.2 billion in the first half of this year.

The dominance of sovereign issue was in line with the trend since 2003 except for the peak years of 2006-2007 and 2008, when corporate issuances dominated the market, according to the report.

April was the busiest month in terms of issuance frequency and value, with 17 issuances raising a total of $6.1 billion, accounting for 25.1 per cent the total first half issuances value.

In line with the tradition since 2003, conventional bonds accounted for the bulk of the amount raised during the first six months of 2010 at $20.1 billion through 68 issues �” five times the total value of sukuks issued during the same period.

Markaz said among non- sovereign/government issues, four sectors were active during the first half. These include the financial services sector which issued the most number of bonds and raised the largest amount at $3.3 billion through eight issuances, followed by the power and utilities sector $2.9 billion through two issuances, the real estate sector at $0.6 million through three issuances, and the oil and gas sector at $ 0.3 million through one issuance.

Kuwait came first by issuing 31 bonds valued at $10.8 billion, representing 44.7 per cent of the total recorded in the GCC. Central Bank of Kuwait accounted for most of that. Saudi Arabia was second at $4.2 billion raised through five issuances, Markaz report said.