GCC Debt Capital Markets Raised Record US$69 Billion in 2016


Issuances in 2017 forecast to increase amidst continued interest rate volatility

According to Securities & Investment Company (SICO) Fixed Income – Asset management market outlook , issuances from GCC debt capital markets set a new record in 2016, dominated by megadeals out of Saudi Arabia, Qatar and Abu Dhabi. Regional sovereigns raised total debt of US$ 69.1 billion during the year, outpacing the previous record set in 2014 by US$ 35.6 billion, as governments sought to plug their annual budget deficits amid a low oil price environment . In a year of continued volatility, yields fell steeply in the first half of 2016 but started to rebound during the summer months. They then spiked even higher in the fourth quarter, following the US election results and the raising of interest rates from 0.25 to 0.50 per cent by the US Federal Reserve (Fed). 

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