GCC bonds, sukuk issuances fall in H1

KUWAIT — The aggregate primary issuance of bonds and sukuk in the GCC totaled $37.6 billion in H1 2012, an 18.7 percent decrease from the total amount raised in during H1 2011, Kuwait Financial Centre (Markaz) said in its recent research report “GCC Bonds & Sukuk Market Survey”.

June dominated the issuance with a frequency of 32; however, May witnessed the highest value as $7.3 billion was issued, representing 19.6 percent of the total amount issued, through 28 issuances.

In terms of GCC central banks local issuances — Central Bank of Kuwait Raised $25.8 Billion — 51 percent of the total CBLI issuance.

Central bank local issuances are debt securities issued by GCC central banks in local currencies and maturities of less than 1 year, to regulate the levels of domestic liquidity. A total of $13.8 billion was raised by the central banks of Kuwait, Bahrain, Qatar, and Oman during H1 2012, with the Central Bank of Kuwait raising the highest amount: $6.5 billion, representing 47.2 percent of the total CBLI amount through 14 issuances.

The GCC bonds market, composed of sovereign and corporate bonds and sukuk issuances denominated in local and foreign currencies, a total of $23.7 billion was raised by Sovereign and Corporate bond and sukuk issuances, compared to $15.4 billion in H1 2011.

During H1 2012, corporate issuances dominated the amount raised, with $18.0 billion or 75.8 percent of the total amount raised. — SG