Sunday 30, September 2018 by Kudakwashe

Saudi expects $11 billion inflows from JP Morgan bond index entry


Saudi Arabia, together with the UAE, Bahrain and Kuwait, will enter JP Morgan’s emerging market government bond indexes next year.

Saudi Arabia is expecting inflows of around $11 billion into the Kingdom’s debt as a result of the inclusion of its international bond issues in JP Morgan’s emerging markets bond indexes, according to local newswire, Saudi Press Agency.

In an announcement, JPMorgan stated that the Kingdom's issues will account for 3.1 per cent of the weight of the indices, which in turn will support the investor base for the Government of the Kingdom's issues, the issuances of government-owned companies and the improvement of liquidity levels.

Saudi’s finance ministry said that JPMorgan’s announcement is a positive development, that reflects the Kingdom's role, among leading sovereign issuers in emerging markets.

The inclusion will be phased in between 31 January and 30 September 2019.

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