According to Bloomberg 9**, Saudi Arabia issued $12 billion in bonds this year, which is the country's largest overseas loan since 2017.
The bonds issued by Saudi Arabia have maturities of 6 years, 10 years and 30 years, and the yields are respectively. 13% and 591%, mainly through Citibank, JPMorgan Chase, HSBC in Hong Kong, etc.
Bloomberg reported that Saudi Arabia, the world's leading oil exporter, projected a few months ago that it would run a fiscal surplus by 2025. However, the recent international oil prices have continued to be sluggish, and it is difficult to meet the budget requirements, so Saudi Arabia has to revise its budget expectations and issue additional bonds.
Haq, chief economist at the UAE's National Bank of Dubai, told Bloomberg that Saudi Arabia's deficit this year will be 4 percent of GDPAround 3%, the financing demand will exceed $46 billion. According to a Bloomberg analysis, Saudi Arabia's overall debt scale is still "very low", and there is still a lot of room for financing.
Heading into 2024, bond issuance is on a large scale in many emerging markets. According to statistics compiled by Bloomberg, in just four days after the beginning of the new year, Mexico, Hungary, Slovenia, Indonesia, Poland and other emerging markets issued a total of 20 bonds, raising a total of 24.4 billion US dollars, setting a record for bond issuance in developing economies.
This momentum is likely to continue as investors incorporate emerging market debt into their portfolios. Global emerging market debt** has attracted 4$9.4 billion in net inflows.
According to Bloomberg analysis, as the central banks of the United States and other countries have cut interest rates one after another this year, the cost of borrowing will be at a low level in the future, and many emerging economies have seen this opportunity and rushed to issue bonds at the beginning of the year. However, some analysts believe that these countries may face challenges in raising funds later this year as the market finds that they are overly optimistic about the Fed's rate cuts.
We can't say what's going to happen in the coming months or the rest of the year. Hungarian Finance Minister Mihai Volgao said after the country issued more bonds than expected, "We decided to increase the amount because we have the opportunity to do so in a favorable yield environment." ”