Gulf debt market deepens as foreign money trickles to banks

DUBAI, June 1 (Reuters) The Gulf market canadian goose jacket in international bonds is deepening as foreign investors move https://www.canadagoose-coats.ca beyond sovereign debt to canada goose black friday sale issues from banks and corporations a shift that could change the way some issuers choose Canada Goose Parka to structure their bonds.

Traditionally, foreign investors in Canada Goose Coats On Sale Gulf debt have focused almost entirely on sovereign canada goose clearance bonds because of their greater safety and liquidity.

But a surge of sovereign issuance in the past 12 months, as Gulf governments cover budget deficits caused canada goose deals by low oil prices, is changing that pattern. It has put the region on the map for some foreign institutions, making them boost allocations to the six canada goose replica Gulf Cooperation Council states.

Institutions that fail to satisfy their appetite for GCC debt canada goose clearance sale entirely with sovereign bonds look a few notches down the credit rating curve at bank and corporate issuers.

Meanwhile, expanded sovereign issuance has created a complete yield curve for the region, making it easier for banks and companies to price Canada Goose sale bonds at levels which a range of investors accept.

is a market that attracts both investment grade and emerging market investors, said Hani Deaibes, head of Middle East debt capital markets at JPMorgan.

is happening is that the Canada Goose online large issuances from sovereigns have made this market more relevant to investors. This has increased the interest in corporates and banks from the region. There more understanding of the market.

In 2016, GCC bond volumes totalled a record $69 billion, more than double the usual level since the mid 2000s, Thomson Reuters data shows. Over canada goose black friday sale $40 billion has been issued so far this year.

Jumbo sovereign deals include Saudi Arabia $17.5 billion debut international bond last year, the largest Canada Goose Online issued in emerging markets, plus an $8 billion Canada Goose Jackets bond from Kuwait and Saudi Arabia $9 billion international sukuk, or Islamic bond, this year.

ALLOCATIONS Allocation statistics for at least one recent Gulf issuer suggest the balance of demand by geography canada goose outlet toronto factory and investor type canada goose store is changing. Some 57 percent of the paper went to them, followed by Middle East investors with 26 percent, Europe with 13 percent and Canada Goose Outlet Asia with 4 percent. buyers took only 2 percent.

has been the first bank to take advantage of this. investors, who also bought the Kuwait canada goose sovereign bond earlier in the year.

Bankers said Oman Electricity Transmission $500 cheap Canada Goose million bond deal in May, buy canada goose jacket cheap and a $500 million bond issued by Qatari telecommunications company Ooredoo in 2016, also attracted unusually large demand from foreigners after issues by the firms respective governments.

GCC issuers have traditionally favoured five year bonds but some may start looking at seven or 10 years because foreign investors have more canada goose coats appetite for longer maturities.

Apostolos Bantis, head of emerging market credit research at Commerzbank, said the 2018 canada goose outlet trickle of foreign demand to banks and corporates was a sign of maturity in the GCC market.

build up of the GCC sovereign bond curves is opening the ground for more domestic corporates to come to the markets at more favourable funding terms. While historically local GCC investors were the main buyers of Middle East corporate canada goose outlet store locations and bank bonds, canada goose coats on sale the trend buy canada goose jacket is changing. (Editing by Andrew Torchia and Stephen Powell).