Middle East refinancing needs to exceed $38b in 2014

Commercial debt issuance by 12 sovereigns in the Middle East and North Africa Mena is expected to exceed $56 billion Dh205.67 billion in 2014 and out of this 67 per cent or $38 billion will be to refinance maturing long-term commercial debt, according to global rating agency Standard & Poor?s.

While the total commercial borrowing from the region is estimated to be up 27 per cent, the net borrowings total debt issuance minus refinancing the existing debt is estimated at $18 billion.

?We project that rated Mena sovereigns? commercial debt stock will reach an equivalent of $462 billion by the end of 2014, up by $17 billion, or 4 per cent from 2013. Adding in bilateral and multilateral debt, the total stock will reach $504 billion, a year-on-year increase of $15 billion, or 3 per cent. We expect that outstanding short-term commercial debt will reach $145 billion at year-end 2014,? said Trevor Cullinan, an analyst with S & P.

Sovereign debt capital markets are relatively underdeveloped in the GCC and it is not anticipated that Abu Dhabi, Kuwait, Qatar, or Saudi Arabia to issue long-term debt in 2014.

via Middle East refinancing needs to exceed $38b in 2014 | GulfNews.com.