With tightening bank liquidity in the oil-dependent Gulf Cooperation Council (GCC) states, businesses and banks are increasingly tapping the domestic and international markets for fresh funds to make up for the drawing down of government deposits to finance their fiscal deficits. Having plunged 60% since mid-2014, oil prices remain stubbornly low with Brent fluctuating either side of $45/B.
The latest instance is part state-owned Qatar National Bank’s (QNB) announcement on 31 August that it has completed a five-year $1bn bond issue under its Euro Medium Term Program in the international markets. This first tranche under the program, priced at a fixed 2.125%/year, was 2.5 times oversubscribed amid strong market appetite by global investors, QNB says. (CONTINUED - 907 WORDS)