Latest news with #debtMarket
Arab News
3 days ago
- Business
- Arab News
Saudi Aramco could tap debt markets again after $5bn bond sale
DUBAI: Saudi Aramco has published a new prospectus for its issuance program of Islamic bonds or sukuk, signalling the state oil major may soon tap the debt markets again after it raised $5 billion from a three-part bond sale this week. The prospectus, submitted to the London Stock Exchange where the sukuk would be listed, is dated May 30. Aramco has a year to issue sukuk under its terms. Aramco earlier this week raised $5 billion from a sale of conventional bonds. The borrowing comes after economic uncertainty and rising supply hit crude markets, denting the top oil exporter's profits. 'Aramco is likely looking to take advantage of a window of relative market calm to issue debt again,' said Zeina Rizk, co-head of fixed income at Amwal Capital Partners. Aramco in March said it expected to slash its dividend this year by nearly a third as profits and free cash flow decline. Reuters reported last week that Aramco is exploring potential asset sales to free up funds as it pursues international expansion and weathers lower crude prices. Citi, HSBC and JPMorgan are the arrangers of the sukuk program and are joined as dealers by First Abu Dhabi Bank, Goldman Sachs, Morgan Stanley, SNB Capital and Standard Chartered.
Arab News
20-05-2025
- Business
- Arab News
Saudi Arabia surpasses $1bn sukuk milestone with May issuance
RIYADH: Saudi Arabia's National Debt Management Center has surpassed the $1 billion threshold in its latest sukuk issuance, raising SR4.08 billion ($1.08 billion) in May through riyal-denominated offerings. This marks a 9.09 percent increase from April and reflects a significant 54.5 percent rise compared to March, when SR2.64 billion was raised. The May issuance continues the Kingdom's strong momentum in the domestic debt market, following SR3.72 billion raised in January and SR3.07 billion in February. The consistent monthly issuances highlight growing investor interest in Shariah-compliant fixed-income instruments, as global financial markets adjust to a higher interest rate environment. Sukuk, the Islamic equivalent of bonds, are structured to comply with Shariah principles, which prohibit interest-based transactions. Instead, investors receive returns derived from partial ownership in tangible assets or investment activities, aligning with Islamic finance ethics. According to the NDMC, the May offering was divided into four tranches. The first tranche amounted to SR489 million and is set to mature in 2029. The second was valued at SR1.004 billion and will mature in 2032. The third tranche, totaling SR1.28 billion, is due in 2036, while the largest portion of the issuance, worth SR1.3 billion, will mature in 2039. Saudi Arabia's debt market has seen rapid growth in recent years, as domestic and international investors seek diversification and stable returns. A report released in April by the Kuwait Financial Center, also known as Markaz, noted that Saudi Arabia led the Gulf Cooperation Council's debt market in the first quarter of 2025. The Kingdom accounted for 60.2 percent of all primary debt issuances in the region, raising $31.01 billion across 41 offerings. In a broader outlook, S&P Global highlighted Saudi Arabia's expanding non-oil economy and robust sukuk activity as key drivers of growth for the global Islamic finance sector. The credit rating agency forecast global sukuk issuance could reach between $190 billion and $200 billion in 2025, with foreign-currency issuances potentially totaling up to $80 billion, assuming stable market conditions. Furthermore, a December 2024 report by Kamco Invest projected that Saudi Arabia will lead the GCC in bond maturities over the next five years. Between 2025 and 2029, approximately $168 billion in Saudi bonds are expected to mature, underscoring the Kingdom's dominant position in the region's debt landscape.
Bloomberg
19-05-2025
- Business
- Bloomberg
Colombia Investors Look Past Fiscal Woes and Buy Long Bonds
Investors are jumping into longer-dated Colombia bonds, wagering that the market has overshot the risks associated with President Gustavo Petro's budget woes. The nation's dollar debt due in 10 years or more rose 2.2% last week, the best performance among similarly rated debt in Latin America.
Yahoo
14-05-2025
- Business
- Yahoo
India's LIC MF finds short-term bonds attractive on RBI's liquidity push
By Shubham Batra and Khushi Malhotra NEW DELHI/MUMBAI (Reuters) -India's short-term bonds, particularly in the up-to-five-year segment, are becoming more attractive amid the central bank's continued liquidity infusions and expectations of further monetary easing, a senior LIC Mutual Fund executive said. Singh expects five-year bond yields to fall 40–50 basis points to 5.6%–5.7% this fiscal year, assuming two to three rate cuts. LIC Mutual Fund, which managed about 170 billion rupees ($1.99 billion) in debt as of end-April, also sees the 10-year benchmark yield easing to 5.85%–5.86%, levels last seen over four years ago. "A rate cut would impact long term (yields) as well, but there I feel government securities and liquid securities are the best bet for trading purpose," Rahul Singh, senior debt fund manager at LIC Mutual Fund told Reuters' Trading India forum. The Reserve Bank of India's repurchase rate stands at 6%. Since the start of the financial year, the central bank has infused nearly 2 trillion rupees into the banking system through open market bond purchases and is set to buy another 500 billion rupees in May. A large dividend transfer to the government is also expected to add to the liquidity surplus, LIC Mutual Fund's Singh said. The daily average surplus currently stands at 1.5 trillion rupees. "It (RBI dividend) should be close to 3 trillion rupees, much more than budgeted amount purely due to foreign exchange gains," he said. He added that this would be a key factor in determining the quantum of future open market purchases of government bonds. "They need to do further (OMOs) depending on what kind of dividend comes and when that money is circulated back to the system once government spending starts." Singh also noted the RBI may opt for more open market operations (OMOs) given its sizeable short position in forwards. The central bank's net short dollar position in forwards and futures stood at $64.2 billion at end-March. ($1 = 85.2780 Indian rupees) Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
