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Gulf States Set for Debt Binge to Build Routes Avoiding Hormuz
['Abhinav Ramnarayan', 'Min Read']
Yahoo Finance - Business Finance, Stock Market, Quotes, News
(Bloomberg) -- Traders are preparing for a spike in borrowing from Persian Gulf nations as the region's oil exporters seek financing to build costly bypasses around the Strait of Hormuz.
Bond sales from the region are at a record $112 billion this year, data compiled by Bloomberg shows.
"We have clearly seen interest to diversify from using the Strait of Hormuz," said Sergei Strigo, head of emerging-markets fixed income at Amundi SA, Europe's largest bond investor.
"There are very significant foreign-exchange reserves that underpin the financial stability of these Gulf countries," he said.
Even Bahrain, with a lower credit rating than its neighbors, raised $1 billion just after the war started, underscoring investors' appetite for Middle East debt.