S&P: Opportune Time for GCC Banks to Raise Funding Via Sukuk Issuances

Research carried out by S&P Global Ratings (S&P) indicate that banks across the Gulf Cooperation Council (GCC) may find the current situation suitable to raise funding.

According to Anita Yadav, Partner and Advisory Board Member at Aspire Capital in Dubai, United Arab Emirates commented that credit quality of banks are expected to come under pressure over the next 12 to 18 months and credit spreads could widen, hence banks would prefer to take advantage of prevailing low benchmark yields. Yadav added that banks opt to issue debt when it is cheapest for them; hence the current situation makes for a good period to borrow funds.

Significant consolidation activity amongst Gulf I...