DOHA: Qatar raised $3.1bn through eleven issuances of Bonds and Sukuk in the first half of 2013 (H1, 2013). The period saw GCC central banks raising a total of $21.4bn through Local Issuances or CBLIs. The CLBIs were issued by the Qatar Central Bank (QCB), Central Bank of Bahrain, Central Bank of Kuwait and Central Bank of Oman.
The aggregate primary issuance of bonds and Sukuk in the GCC totaled $45.5bn in H1, 2013, a 4.6 per cent increase from the total amount raised compared to H1, 2012. But the CBLIs raised during H1, 2013 saw a reduction of 3.4 percent from its levels during the same period in 2012, Kuwait Financial Centre (Markaz) noted in a research note released yesterday.
The months of March and April witnessed the highest primary issuance of bonds and Sukuk activity with $10.7bn raised in March and $10.6bn raised in April through 42 issuances and 32 issuances respectively.
Central Bank of Kuwait raised the highest amount amongst GCC central banks during H1, 2013, at $12.3bn through 34 issuances, despite a 12.7 percent decline from the amount it raised during the same period of 2012.
“In continuation to the trend which prevailed in previous years, Central Bank of Kuwait remained the leading issuer of conventional CBLIs, raising 61.6 percent of total value raised through conventional bonds issued by GCC central banks in H1, 2013. By the same token, Central Bank of Bahrain and Qatar Central Bank remained the only issuers of Sukuk, raising $0.8m and $0.5m respectively.
“The GCC Bonds and Sukuk market includes GCC Sovereign Issuances and GCC Corporate Issuances and does not include GCC Central Banks Local Issuances. The total value of new issuances in the GCC Bonds and Sukuk market, during H1, 2013 was 24.1m, a 13 percent increase in comparison to the respective period of 2012. This was accompanied by an increase of 25.6 percent in the number of issuances to 103 new issues.
“Geographical Allocation: UAE entities remained the most active issuers raising 50.6 per cent of the total amount raised in H1, 2013, through 72 issuances. Saudi Arabian entities raised $7.3bn through eleven issuances, followed by Qatari entities through eleven issuances. The Kuwaiti bond market witnessed two new issuances raising $210m.
In continuation to the previous trend, 94.8 per cent of total value ($22.8bn) raised by new issuances in 1H 2013 was raised by corporate entities through 101 new issuances.