Emerging-Market Issuers Sell Record $450 Billion Bonds in H1 as Spreads Hit 20-Year Lows
Updated
Updated · Bloomberg · Jun 30
Emerging-Market Issuers Sell Record $450 Billion Bonds in H1 as Spreads Hit 20-Year Lows
3 articles · Updated · Bloomberg · Jun 30
Summary
$450 billion of dollar- and euro-denominated bonds were sold by emerging-market issuers in January-June, a record first half and 15% more than a year earlier.
Tighter borrowing costs drove the surge, with sovereigns and companies tapping international markets as spreads narrowed to their lowest levels in almost two decades.
Mexico, Saudi Arabia, South Korea, Poland, Turkey and Brazil each raised more than $10 billion, showing the rebound was broad across major emerging borrowers.
The issuance boom extends a rally seen in Gulf debt markets, where post-ceasefire spread compression had already reopened supply after the U.S.-Iran war disrupted sales.
Is the Gulf's post-ceasefire market rally a true recovery or a fragile bubble awaiting the next geopolitical shock?
Can Iraq's new premier use US oil deals to successfully challenge OPEC and rebuild his nation's war-torn economy?
As AI's trillion-dollar boom outpaces energy grids, which will break first: the tech bubble or the power supply?
Gulf Debt Issuance Surges in 2026: Navigating Relief Rallies, Geopolitical Shocks, and Fiscal Pressures
Overview
In June 2026, Gulf entities are actively issuing debt, but the market faces notable challenges. Higher funding costs have reduced investor risk appetite, making investors more selective and favoring higher-rated GCC issuers. This selectivity benefits sovereign and quasi-sovereign entities, while the broader market faces constraints. A key structural issue is the limited depth of investors, which, combined with elevated borrowing costs, creates a difficult environment for issuers. These factors highlight the complex dynamics in the Gulf debt market, where both immediate financial pressures and long-term structural challenges shape market activity and development.