Bond issuance in the Gulf is unlikely to extend the boom of the latest quarter, as Dubai World's request for a standstill from its creditors has sapped market confidence, bankers say.
New issues of bonds reached US$38 billion (Dh139.57bn) last year, including record issuance in the fourth quarter, compared with $14bn in 2008 and $28bn in 2007. "If you extrapolate from the last quarter, we could see $60bn in issuance [this year], but that is probably optimistic," said Andrew Dell, the HSBC regional managing director for global financing.
"The investor appetite and the volumes are there, and there is an increasing trend of volume and variety." Mr Dell made his comments yesterday at the launch of the Gulf Bond and Sukuk Association in Dubai.
Such growth potential has not been reflected in the prices of bonds traded in the secondary market, which indicate the wariness of investors.
The yield of the HSBC/DIFX Sukuk US$ Bond Index has climbed to 7.01 per cent after falling as low as 5.57 per cent on November 25, before Dubai World said it was seeking a standstill agreement with lenders. Investors usually demand a higher rate of interest if they see a higher risk of default.
The news that one of Dubai's key conglomerates was seeking a debt standstill rattled global investors and sapped confidence in regional debt markets.
Abdul Kadir Hussain, the chief executive at Mashreq Capital, said "markets here are not opening up as fast as in other regions". Dubai Electricity and Water Authority last week delayed its $1.5bn bond issuance originally planned for the first quarter. It blamed market conditions. This contrasts sharply with the final three months of last year, when Gulf issuers raised a record $15bn in new debt, reported Dealogic, a data provider.
Dar Al Arkan, Saudi Arabia's largest property developer, is preparing to issue a sukuk to refinance a $600 million three-year floating-rate note due in March of this year. On Sunday, the government of Bahrain said it planned to issue $1bn in 10-year bonds. Observers expect this to happen as early as March of this year.
@Email:uharnischfeger@thenational.ae
More on animal trafficking
Director: Romany Saad
Starring: Mirfat Amin, Boumi Fouad and Tariq Al Ibyari
Types of bank fraud
1) Phishing
Fraudsters send an unsolicited email that appears to be from a financial institution or online retailer. The hoax email requests that you provide sensitive information, often by clicking on to a link leading to a fake website.
2) Smishing
The SMS equivalent of phishing. Fraudsters falsify the telephone number through “text spoofing,” so that it appears to be a genuine text from the bank.
3) Vishing
The telephone equivalent of phishing and smishing. Fraudsters may pose as bank staff, police or government officials. They may persuade the consumer to transfer money or divulge personal information.
4) SIM swap
Fraudsters duplicate the SIM of your mobile number without your knowledge or authorisation, allowing them to conduct financial transactions with your bank.
5) Identity theft
Someone illegally obtains your confidential information, through various ways, such as theft of your wallet, bank and utility bill statements, computer intrusion and social networks.
6) Prize scams
Fraudsters claiming to be authorised representatives from well-known organisations (such as Etisalat, du, Dubai Shopping Festival, Expo2020, Lulu Hypermarket etc) contact victims to tell them they have won a cash prize and request them to share confidential banking details to transfer the prize money.
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
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ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.