Dubai - Decypha: The Gulf Cooperation Council (GCC) has the lion’s share of all sovereign bonds issued in 2017, expected to close the year with 31% of the market, Gulf News reported.
From the Middle East, Saudi Arabia and Kuwait are seen as the largest issuers in 2017, according to Bank of America Merrill Lynch. Other countries believed to lead the sector are Argentina and Indonesia
The recent growth in issuances from the GCC region, which are expected to continue to hike rapidly, are believed to be due to the turbulences caused by the oil slump.
An example highlighted by analysts from Bank of America Merrill Lynch was Kuwait; the country initiated the external sovereign debt market with $8 billion to deal with the budget deficit resulting from low oil prices.
The volume of issuances for the year is forecasted to be 6% higher than that of 2016.
By Decypha Editorial Team
