Home
Gulf countries are drawing up plans for the development of local currency bond markets
This is a few days old but talking about currency bond markets
Citizen - Follow-up
In a region dominated by international bank loans and bonds, put the Arab Gulf States plans to develop local currency bond markets by way of reforms will allow new opportunities for financial firms. In the past it was seen on a large scale to the local bond markets, as unnecessary in the six Gulf Cooperation Council (GCC). The banks were able to re-abundant oil money in the form of direct loans, and provided rapid economic growth for companies to finance its expansion of the excess profits, while large state-owned companies were able to easily access the international capital markets. This situation has not changed, but other factors began to influence the thinking of policy makers, as they want to reduce the risks to their sectors of banking, after the global financial crisis, which means reducing the exposure of banks to companies and encourage them to measure some of the money through bonds.
Governments are also working to diversify their economies rather than relying on oil and securing employment in the private sector, which means helping small businesses that have already rejected the banks deal with each other, the liquidity measure.
All this resulted in efforts to develop the primary markets for corporate bonds both conventional and Islamic, while ensuring the availability of a request from investors on the bonds in the secondary market will be strong enough to absorb the excess supply.
In Saudi Arabia, for example, the central bank urges banks during this year, to reduce their exposure to individual customers, including no more than 25 percent of the bank's reserves and paid-up capital or investor. He announced CEO of «Saudi - French Capital» (unit investment banking activities of the Saudi - French bank) Yasser Aremeian, that means the need for the «big money corporate market mean whether to sell instruments or bonds», saying it «News excellent financial advisors like us workers in the capital market. »
According «HSBC» amounted to conventional bonds and instruments denominated in Saudi Riyals versions 20.2 billion riyals ($ 5.4 billion) since the beginning of the year. This decrease of 40 billion riyals last year, but the 2013 numbers were high due to the issuance worth 15.2 billion riyals from the General Authority of Civil Aviation, and another extraordinary project to support the company «forefront Chemicals» worth 7.5 billion riyals. The CMA announced that due to the introduction of rules for credit rating agencies such as «Standard & Poor's» in September 2015, will help to increase the interest of foreign investors and local bonds. And reduced the body to the end of the period required the borrower of the regulatory procedures, and became give a preliminary response within days of submission of the application, after it was take months two years ago.
And complement these initiatives with the pros already existing in Saudi Arabia, the primary market, especially high levels of liquidity reduces borrowing costs much less than the equivalent dollar bond rates. The director of finance and corporate finance markets in the «HSBC Saudi Arabia Fahd sword, that« the reduced interest rate between the local currency bonds and loans gap encourage the issuance of bonds Riyals ».
Saudi Arabia and made the other Gulf states to encourage the use of bonds to finance large infrastructure and industrial infrastructure projects, such as «forefront», a joint venture between the company «Saudi Aramco» and «Dow Chemical».
[rtl]وق[/rtl]
The Dubai-based President's «Gulf Association of bonds and instruments» Michael Greverta, Qatar, Kuwait «Tekvan lesson (Saudi success) in the light of the size Anvagahma on infrastructure and restrictions on pumping money through the banking system.»
Gulf behind Saudi Arabia and is considered to encourage corporate bonds but the gap may be shrinking. In the UAE, where versions in local currency is limited, and put the organizing body for the stock market new rules this year, reduced the minimum corporate bonds to ten million dirhams ($ 2.7 million) from 50 million, and eliminate the requirement borrower obtain a credit rating and shrinking regulatory approval for release period .
In theory, the UAE can become a platform for the issuance of bonds of small and medium-sized companies across the Gulf, but the lack of knowledge of borrowers and investors, the system will make slow progress, even in the early stages at least. What hampers the growth of the bond market in UAE Dirhams unavailability of the sovereign yield curve can be used as a basis for pricing decisions. And operates the federal government for years to prepare legislation that would allow it to issue bonds, but not enacted yet and it is unclear when it can happen.
Government of Qatar and the process of building a local yield curve, where expanding in maturities of bonds they sell. Also increased its efforts to encourage the borrowers and investors to enter the bond market in the local currency by changing the weights of the holdings of securities allowed banks to finance investment for the benefit of local bonds, as authorities examine the development of the technical aspects of the market ». He pointed CEO of Qatar Exchange Rashid Al Mansouri, that the stock market «is working with the regulator and borrowers to change the settlement cycle for bonds to become a T + 1 Bdlamn T + 3». According to the settlement cycle to the deadline for the payment of the value and delivery of securities, would be reduced to one day after the transaction that gives money to reinvest and to reduce credit exposure.
[You must be registered and logged in to see this link.]
This is a few days old but talking about currency bond markets
Citizen - Follow-up
In a region dominated by international bank loans and bonds, put the Arab Gulf States plans to develop local currency bond markets by way of reforms will allow new opportunities for financial firms. In the past it was seen on a large scale to the local bond markets, as unnecessary in the six Gulf Cooperation Council (GCC). The banks were able to re-abundant oil money in the form of direct loans, and provided rapid economic growth for companies to finance its expansion of the excess profits, while large state-owned companies were able to easily access the international capital markets. This situation has not changed, but other factors began to influence the thinking of policy makers, as they want to reduce the risks to their sectors of banking, after the global financial crisis, which means reducing the exposure of banks to companies and encourage them to measure some of the money through bonds.
Governments are also working to diversify their economies rather than relying on oil and securing employment in the private sector, which means helping small businesses that have already rejected the banks deal with each other, the liquidity measure.
All this resulted in efforts to develop the primary markets for corporate bonds both conventional and Islamic, while ensuring the availability of a request from investors on the bonds in the secondary market will be strong enough to absorb the excess supply.
In Saudi Arabia, for example, the central bank urges banks during this year, to reduce their exposure to individual customers, including no more than 25 percent of the bank's reserves and paid-up capital or investor. He announced CEO of «Saudi - French Capital» (unit investment banking activities of the Saudi - French bank) Yasser Aremeian, that means the need for the «big money corporate market mean whether to sell instruments or bonds», saying it «News excellent financial advisors like us workers in the capital market. »
According «HSBC» amounted to conventional bonds and instruments denominated in Saudi Riyals versions 20.2 billion riyals ($ 5.4 billion) since the beginning of the year. This decrease of 40 billion riyals last year, but the 2013 numbers were high due to the issuance worth 15.2 billion riyals from the General Authority of Civil Aviation, and another extraordinary project to support the company «forefront Chemicals» worth 7.5 billion riyals. The CMA announced that due to the introduction of rules for credit rating agencies such as «Standard & Poor's» in September 2015, will help to increase the interest of foreign investors and local bonds. And reduced the body to the end of the period required the borrower of the regulatory procedures, and became give a preliminary response within days of submission of the application, after it was take months two years ago.
And complement these initiatives with the pros already existing in Saudi Arabia, the primary market, especially high levels of liquidity reduces borrowing costs much less than the equivalent dollar bond rates. The director of finance and corporate finance markets in the «HSBC Saudi Arabia Fahd sword, that« the reduced interest rate between the local currency bonds and loans gap encourage the issuance of bonds Riyals ».
Saudi Arabia and made the other Gulf states to encourage the use of bonds to finance large infrastructure and industrial infrastructure projects, such as «forefront», a joint venture between the company «Saudi Aramco» and «Dow Chemical».
[rtl]وق[/rtl]
The Dubai-based President's «Gulf Association of bonds and instruments» Michael Greverta, Qatar, Kuwait «Tekvan lesson (Saudi success) in the light of the size Anvagahma on infrastructure and restrictions on pumping money through the banking system.»
Gulf behind Saudi Arabia and is considered to encourage corporate bonds but the gap may be shrinking. In the UAE, where versions in local currency is limited, and put the organizing body for the stock market new rules this year, reduced the minimum corporate bonds to ten million dirhams ($ 2.7 million) from 50 million, and eliminate the requirement borrower obtain a credit rating and shrinking regulatory approval for release period .
In theory, the UAE can become a platform for the issuance of bonds of small and medium-sized companies across the Gulf, but the lack of knowledge of borrowers and investors, the system will make slow progress, even in the early stages at least. What hampers the growth of the bond market in UAE Dirhams unavailability of the sovereign yield curve can be used as a basis for pricing decisions. And operates the federal government for years to prepare legislation that would allow it to issue bonds, but not enacted yet and it is unclear when it can happen.
Government of Qatar and the process of building a local yield curve, where expanding in maturities of bonds they sell. Also increased its efforts to encourage the borrowers and investors to enter the bond market in the local currency by changing the weights of the holdings of securities allowed banks to finance investment for the benefit of local bonds, as authorities examine the development of the technical aspects of the market ». He pointed CEO of Qatar Exchange Rashid Al Mansouri, that the stock market «is working with the regulator and borrowers to change the settlement cycle for bonds to become a T + 1 Bdlamn T + 3». According to the settlement cycle to the deadline for the payment of the value and delivery of securities, would be reduced to one day after the transaction that gives money to reinvest and to reduce credit exposure.
[You must be registered and logged in to see this link.]
