TFD Stocks Overview

Issuance of Bonds and Sukuk by GCC and Pakistan in 2017-2018 – Learning lessons for the whole region

Primary issuance of bonds and Sukuk by GCC entities, including Central Banks Local Issuances, GCC Sovereign and Corporate Issuances, totaled $174.17 billion in 2017, a 3.96 per cent increase from the total amount raised in 2016.

Central Bank Local Issuances are Fixed Income securities issued by GCC central banks in local currencies and with short maturities for the purpose of regulating levels of domestic liquidity. During 2017, a total of $69.90 billion was raised by the GCC central banks, namely by the Central Bank of Kuwait, Bahrain, Qatar, and Oman. (The only publically available information is from the Central Bank of Bahrain, the Central Bank of Kuwait, the Central Bank of Oman, and the Central Bank of Qatar). The Central Bank of Kuwait raised the highest amount with KWD 10.93 billion ($36.179 billion), representing 51.76 per cent of the total amount raised by CBLIs through 70 issuances, followed by the Central Bank of Bahrain, which raised a total of BHD5.39 billion ($14.33 billion).

The GCC Bonds and Sukuk market is composed of bonds and Sukuk issued by GCC Sovereign, corporate entities and financial institutions, for financing purposes in local and foreign currencies. A total of $104.26 billion was raised in the GCC bonds market in 2017, a growth of 1.78 per cent from $102.44 billion raised in 2016.

On a quarterly basis, the fourth quarter of 2017 recorded the highest value of issuance with $39.44 billion raised through 59 issuances while the third quarter was the most subdued as $17.87 billion was raised through 45 issuances.

Saudi Arabia was the leading issuer in 2017, raising $41.60 billion through 20 issues and representing 39.9 per cent of the total value raised by the GCC issuers during the year.
The UAE-based issuers raised $32.61 billion during 2017, up by 35 per cent as compared to $24.3 billion raised in 2016 and representing 31.3 per cent of the total market. Kuwait entities represented 10.4 per cent of the total issuances, raising $10.83 billion as compared to $4.52 billion raised in 2016. Omani issues represented 7.8 per cent of the total value of issuances, raising $8.12 billion through 8 issues. Amidst the regional crisis, Qatari entities raised $6.18 billion from 62 issues; however the primary issuances dropped by 67.8 per cent compared to $19.22 billion raised in 2016. Bahraini entities represented 4.7 per cent of the total issuances, raising $4.90 billion through 6 issues.

Sovereign issues continued to dominate the GCC bonds and Sukuk market in 2017 contributing 62.6 per cent to the overall market with a total value of $65.28 billion as compared to $65.82 billion in 2016. Total value raised by corporate entities in 2017 increased by 6.46 per cent, to $38.98 billion in 2017 from $36.61 billion in 2016. Saudi Arabia Government raised a total of $37.28 billion out of which SAR58.45 billion ($15.78 billion) through domestic bonds and $21.5 billion through US dollar denominated Bonds and Sukuk. The year was also instrumental for the Kuwaiti debt market as the Kuwait Government issued its debut Euro-dollar bonds in March raising $3.5 billion through five-year bonds at a coupon of 2.75 per cent and $4.5 billion through ten-year bonds at a coupon of 3.75 per cent. Abu Dhabi, Oman and Bahrain governments raised $10 billion, $7 billion and $ 3 billion respectively. Qatar was the only GCC sovereign entity not tapping the international bond markets in 2017.

Conventional issuances raised $81.42 billion, or 78.08 per cent of the total amount raised in GCC bonds and Sukuk market during 2017. Sukuk raised $22.85 billion, 81 per cent higher as compared to $12.63 raised in 2016 and represented a share of 21.91 per cent of the market in 2017.

Government sector accounted for the largest amount raised during the year, with $65.28 billion representing 62.6 per cent of the total amount raised as compared to $65.82 billion issued in 2016. The Financial sector followed with $22.29 billion (21.4 per cent of total market) raised through 227 issues.

Issuances with tenures of six to ten years raised the highest amount, $42.9 billion, through 35 issuances, representing 41.2 per cent of the total amount raised. However, maturities of five years or less increased to $39.79 billion representing 38.2 per cent of the market as compared to $11.93 billion in 2016 representing 11.4 per cent.

GCC bonds and Sukuk issuances during 2017 had issue sizes ranging from $0.65 million to $5 billion. Issuances with principle amounts greater than or equal to $1.0 billion raised the largest amount of $62.17 billion, representing 59.63 per cent of the total value.
US dollar denominated issuances lead the GCC Bonds and Sukuk market, raising $82.52 billion (79.14 per cent of the total amount raised) by 203 issuances. Followed by Saudi Riyal raising $18.78 billion (18.01 per cent of the total amount raised) through 13 issuances.

During 2017, a total value of 73.3 per cent of Sovereign and Corporate issuances, were rated by either one or more of the following rating agencies: Moody’s, Standard & Poor’s, Fitch, and Capital Intelligence out of which 87.9 per cent issuances had investable grade ratings.
During 2017, 73.3 per cent of the total issuances or 126 GCC Bonds and Sukuk issuances, with an aggregate value of $76.46 billion were listed on exchanges. Listing on international exchanges accounted for 99 per cent of the listed issues with an aggregate value of $75.56 billion.

As of 31 December 2017, the total amount outstanding of corporate and sovereign bonds and Sukuk issued by GCC entities was $425.68 billion. Government issuances made up the majority of the total amount outstanding with $203.39 billion, or 47.8 per cent of the total amount. Financial sector led the corporate sector with a total amount outstanding of $101.64 billion, or 23.9 per cent of the total amount.
Of the amount outstanding as of 31 December 2017, $164.21 billion, or 38.58 per cent were issued by Saudi Arabian entities. Bonds and Sukuk by Kuwaiti entities represented $19.67 billion, or 4.62 per cent of the total amount outstanding.

Comparing Pakistan it would once again tap international capital market to issue sukuk/bond within next couple of months to generate at least $1 billion or more to build the country’s foreign exchange reserves.
The process of issuance sukuk bond has started already. The government is eyeing to generate at least $1 billion or more from the issuance of sukuk bond . However, the exact amount would be decided after a response from the international market subsequent to road shows. Up till Dec 2017, Government has already issued 3 years Ijarah Sukuk in the domestic market to the amount of Rs 385 billion. From external sector it has raised $ 7.3 billion through Sukuk.

The Ministry of Finance had already sought permissions of the federal cabinet for borrowing from international capital market. The federal cabinet headed by Prime Minister Shahid Khaqan Abbasi deferred it till next meeting with a directive to present a comparative analysis of interest rate. The government’s plans to raise loans from the international market by issuing bonds would support the foreign exchange reserves, which are under pressure due to widening trade deficit.

Pakistan’s external sector is under pressure due to widening of current account deficit, which is eroding the foreign exchange reserves of the country. The reserves are sharply tumbled by over $4 billion in one year to $18.9 billion. The current account deficit had widened to $ 14.3 billion in the first six months of the current fiscal year, as higher imports growth offset the improvement in exports.
Topline Research, in its recent report, said that projected Current Account Deficit during FY18 to be in the range of $16.0-16.5 billion (5.0-5.5pc of GDP), up from $12.1 billion in FY17. “This will likely result in further depletion of forex reserves, which we expect to further fall by $3 billion in FY18 to $13 billion,” it stated.

The government, in the budget for the ongoing financial year 2017-18, had projected to generate $1 billion at least from issuing sukuk bond in the international market. Issuing bond could boost the declining foreign reserves of the country. Pakistan had successfully tapped international capital market four times since 2014.

Meanwhile, the country would repay $7.4 billion on external debt including $1.6 billion on interest payment during the current fiscal year. Similarly, the country would repay $4.263 billion in 2018-19, $7.07 billion in 2019-20 and $4.571 billion in 2020-21. The World Bank, in its recent report, noted that Pakistan’s external balance is particularly vulnerable given the persistent current account deficit, affecting the country’s reserve position. Improving the external balance hinges upon a revival in exports, a slowdown in imports, and stable remittance flows. In absence of any of these factors, the persistent current account deficit will put further pressure on already dwindling reserves.

CAIF

xosotin chelseathông tin chuyển nhượngcâu lạc bộ bóng đá arsenalbóng đá atalantabundesligacầu thủ haalandUEFAevertonfutebol ao vivofutemaxmulticanaisonbetbóng đá world cupbóng đá inter milantin juventusbenzemala ligaclb leicester cityMUman citymessi lionelsalahnapolineymarpsgronaldoserie atottenhamvalenciaAS ROMALeverkusenac milanmbappenapolinewcastleaston villaliverpoolfa cupreal madridpremier leagueAjaxbao bong da247EPLbarcelonabournemouthaff cupasean footballbên lề sân cỏbáo bóng đá mớibóng đá cúp thế giớitin bóng đá ViệtUEFAbáo bóng đá việt namHuyền thoại bóng đágiải ngoại hạng anhSeagametap chi bong da the gioitin bong da lutrận đấu hôm nayviệt nam bóng đátin nong bong daBóng đá nữthể thao 7m24h bóng đábóng đá hôm naythe thao ngoai hang anhtin nhanh bóng đáphòng thay đồ bóng đábóng đá phủikèo nhà cái onbetbóng đá lu 2thông tin phòng thay đồthe thao vuaapp đánh lô đềdudoanxosoxổ số giải đặc biệthôm nay xổ sốkèo đẹp hôm nayketquaxosokq xskqxsmnsoi cầu ba miềnsoi cau thong kesxkt hôm naythế giới xổ sốxổ số 24hxo.soxoso3mienxo so ba mienxoso dac bietxosodientoanxổ số dự đoánvé số chiều xổxoso ket quaxosokienthietxoso kq hôm nayxoso ktxổ số megaxổ số mới nhất hôm nayxoso truc tiepxoso ViệtSX3MIENxs dự đoánxs mien bac hom nayxs miên namxsmientrungxsmn thu 7con số may mắn hôm nayKQXS 3 miền Bắc Trung Nam Nhanhdự đoán xổ số 3 miềndò vé sốdu doan xo so hom nayket qua xo xoket qua xo so.vntrúng thưởng xo sokq xoso trực tiếpket qua xskqxs 247số miền nams0x0 mienbacxosobamien hôm naysố đẹp hôm naysố đẹp trực tuyếnnuôi số đẹpxo so hom quaxoso ketquaxstruc tiep hom nayxổ số kiến thiết trực tiếpxổ số kq hôm nayso xo kq trực tuyenkết quả xổ số miền bắc trực tiếpxo so miền namxổ số miền nam trực tiếptrực tiếp xổ số hôm nayket wa xsKQ XOSOxoso onlinexo so truc tiep hom nayxsttso mien bac trong ngàyKQXS3Msố so mien bacdu doan xo so onlinedu doan cau loxổ số kenokqxs vnKQXOSOKQXS hôm naytrực tiếp kết quả xổ số ba miềncap lo dep nhat hom naysoi cầu chuẩn hôm nayso ket qua xo soXem kết quả xổ số nhanh nhấtSX3MIENXSMB chủ nhậtKQXSMNkết quả mở giải trực tuyếnGiờ vàng chốt số OnlineĐánh Đề Con Gìdò số miền namdò vé số hôm nayso mo so debach thủ lô đẹp nhất hôm naycầu đề hôm naykết quả xổ số kiến thiết toàn quốccau dep 88xsmb rong bach kimket qua xs 2023dự đoán xổ số hàng ngàyBạch thủ đề miền BắcSoi Cầu MB thần tàisoi cau vip 247soi cầu tốtsoi cầu miễn phísoi cau mb vipxsmb hom nayxs vietlottxsmn hôm naycầu lô đẹpthống kê lô kép xổ số miền Bắcquay thử xsmnxổ số thần tàiQuay thử XSMTxổ số chiều nayxo so mien nam hom nayweb đánh lô đề trực tuyến uy tínKQXS hôm nayxsmb ngày hôm nayXSMT chủ nhậtxổ số Power 6/55KQXS A trúng roycao thủ chốt sốbảng xổ số đặc biệtsoi cầu 247 vipsoi cầu wap 666Soi cầu miễn phí 888 VIPSoi Cau Chuan MBđộc thủ desố miền bắcthần tài cho sốKết quả xổ số thần tàiXem trực tiếp xổ sốXIN SỐ THẦN TÀI THỔ ĐỊACầu lô số đẹplô đẹp vip 24hsoi cầu miễn phí 888xổ số kiến thiết chiều nayXSMN thứ 7 hàng tuầnKết quả Xổ số Hồ Chí Minhnhà cái xổ số Việt NamXổ Số Đại PhátXổ số mới nhất Hôm Nayso xo mb hom nayxxmb88quay thu mbXo so Minh ChinhXS Minh Ngọc trực tiếp hôm nayXSMN 88XSTDxs than taixổ số UY TIN NHẤTxs vietlott 88SOI CẦU SIÊU CHUẨNSoiCauVietlô đẹp hôm nay vipket qua so xo hom naykqxsmb 30 ngàydự đoán xổ số 3 miềnSoi cầu 3 càng chuẩn xácbạch thủ lônuoi lo chuanbắt lô chuẩn theo ngàykq xo-solô 3 càngnuôi lô đề siêu vipcầu Lô Xiên XSMBđề về bao nhiêuSoi cầu x3xổ số kiến thiết ngày hôm nayquay thử xsmttruc tiep kết quả sxmntrực tiếp miền bắckết quả xổ số chấm vnbảng xs đặc biệt năm 2023soi cau xsmbxổ số hà nội hôm naysxmtxsmt hôm nayxs truc tiep mbketqua xo so onlinekqxs onlinexo số hôm nayXS3MTin xs hôm nayxsmn thu2XSMN hom nayxổ số miền bắc trực tiếp hôm naySO XOxsmbsxmn hôm nay188betlink188 xo sosoi cầu vip 88lô tô việtsoi lô việtXS247xs ba miềnchốt lô đẹp nhất hôm naychốt số xsmbCHƠI LÔ TÔsoi cau mn hom naychốt lô chuẩndu doan sxmtdự đoán xổ số onlinerồng bạch kim chốt 3 càng miễn phí hôm naythống kê lô gan miền bắcdàn đề lôCầu Kèo Đặc Biệtchốt cầu may mắnkết quả xổ số miền bắc hômSoi cầu vàng 777thẻ bài onlinedu doan mn 888soi cầu miền nam vipsoi cầu mt vipdàn de hôm nay7 cao thủ chốt sốsoi cau mien phi 7777 cao thủ chốt số nức tiếng3 càng miền bắcrồng bạch kim 777dàn de bất bạion newsddxsmn188betw88w88789bettf88sin88suvipsunwintf88five8812betsv88vn88Top 10 nhà cái uy tínsky88iwinlucky88nhacaisin88oxbetm88vn88w88789betiwinf8betrio66rio66lucky88oxbetvn88188bet789betMay-88five88one88sin88bk88xbetoxbetMU88188BETSV88RIO66ONBET88188betM88M88SV88Jun-68Jun-88one88iwinv9betw388OXBETw388w388onbetonbetonbetonbet88onbet88onbet88onbet88onbetonbetonbetonbetqh88mu88Nhà cái uy tínpog79vp777vp777vipbetvipbetuk88uk88typhu88typhu88tk88tk88sm66sm66me88me888live8live8livesm66me88win798livesm66me88win79pog79pog79vp777vp777uk88uk88tk88tk88luck8luck8kingbet86kingbet86k188k188hr99hr99123b8xbetvnvipbetsv66zbettaisunwin-vntyphu88vn138vwinvwinvi68ee881xbetrio66zbetvn138i9betvipfi88clubcf68onbet88ee88typhu88onbetonbetkhuyenmai12bet-moblie12betmoblietaimienphi247vi68clupcf68clupvipbeti9betqh88onb123onbefsoi cầunổ hũbắn cáđá gàđá gàgame bàicasinosoi cầuxóc đĩagame bàigiải mã giấc mơbầu cuaslot gamecasinonổ hủdàn đềBắn cácasinodàn đềnổ hũtài xỉuslot gamecasinobắn cáđá gàgame bàithể thaogame bàisoi cầukqsssoi cầucờ tướngbắn cágame bàixóc đĩaAG百家乐AG百家乐AG真人AG真人爱游戏华体会华体会im体育kok体育开云体育开云体育开云体育乐鱼体育乐鱼体育欧宝体育ob体育亚博体育亚博体育亚博体育亚博体育亚博体育亚博体育开云体育开云体育棋牌棋牌沙巴体育买球平台新葡京娱乐开云体育mu88qh88

Leave a Reply