Suddenly, it's a year of mega bond deals in emergingmarkets.

Argentina drew US$65 billion in bids for its $16.5 billionoffering in April, and now borrowers in the Middle East arestepping up. Abu Dhabi returned to the international capitalmarkets with a $5 billion placement, followed by a record $9billion sale by Qatar. Saudi Arabia is looking to sell as much as$15 billion of bonds in a debut offering, people with knowledge ofthe matter said.

Governments in the six-nation Gulf Cooperation Council, whichincludes Saudi Arabia and the United Arab Emirates, are turning toforeign markets after the plunge in oil prices punched holes intheir budgets. Issuers are also rushing to capture lowerborrowing costs before a potential Federal Reserve interest-rateincrease. After the slowest first quarter since 2010, themega-deals have propelled dollar- and euro-denominated bond salesfrom developing nations to almost $120 billion in April andMay.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.