Saudi Arabia and four other Gulf nations will join JPMorgan Chase & Co.’s emerging-market bond indexes this month, Bloomberg reports, “potentially paving the way for billions of dollars in inflows into the securities.”
The debt offerings from Saudi Arabia, Qatar, the United Arab Emirates, Bahrain and Kuwait will represent about 11.8 percent of the EMBI Global Diversified Index and 12 percent of the EMBI Global beginning Jan. 31, according to Bloomberg.
The Gulf nations’ bonds will be added in phases over nine months, and their inclusion may spur about $30 billion in inflows, resulting in tighter spreads and easier primary-market access.
