Gulf Borrowers Pivot From Loans with $100 Billion Bond Record
- Issuers flocked to bonds as investors chased yields in 2019
- State spending cuts have delayed projects and cut loan demand
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Gulf borrowers raised more than $100 billion in bond placements this year, a record amount that marked a shift from the more private funding route offered by loans.
Saudi Aramco and Qatar were the biggest issuers, while Egypt, Oman and Saudi Arabia also tapped international bond markets. Syndicated loans dropped 39% this year as sovereigns and companies sold notes in dollars and euros -- a significant development for borrowers that have traditionally avoided airing their finances in public.