Abu Dhabi, Qatar and Kuwait have collectively raised $7bn through private bond placements since the onset of the US-Israeli conflict with Iran, opting to place debt with selected investors as public markets remained largely inaccessible for new issuances.
The conflict, which began on February 28, escalated into a wider regional war before a fragile ceasefire took effect on April 8. Heightened uncertainty initially drove down prices of regional sovereign and corporate bonds; however, markets have since rebounded following the truce, albeit still trading marginally below pre-conflict levels.
Abu Dhabi secured $2bn via private placement, while Qatar and Kuwait issued $3bn and $2bn respectively through similar routes. According to Mashreq Capital data, all of these bonds carry a maturity of seven years.
In addition, Abu Dhabi raised $2.5bn through a tap issuance, extending the size of existing three- and eight-year bonds rather than introducing entirely new instruments.
Mohieddine Kronfol, Chief Investment Officer for Global Sukuk and MENA Fixed Income at Franklin Templeton in Dubai, noted that a sustained ceasefire could trigger a strong revival in public market activity. He added that market performance has remained relatively stable, with limited downside priced in so far.
Amol Shitole, Head of Fixed Income at Mashreq Capital, highlighted that the slowdown in public bond issuance throughout March and early April reflected a broader global trend, rather than being confined to the region.
