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Gulf Banks Raise Money Through Private Placements — Market Talk
Gulf Banks Raise Money Through Private Placements — Market Talk
About this update from Al Rajhi Bank
Some Gulf banks use the private placement market to raise funds as the Middle East conflict continues, CreditSights' Pramod Shenoi says in a note. Private placements are non-public forms of raising capital by selling debt securities to accredited investment institutions. This method of raising capital has the advantage of not subjecting the issuer to intra-day volatility, though the issuer is paying higher costs to get the deal than issuing in a public market, Shenoi says. Qatar's QNB bank and Saudi Arabia's Al Rajhi Bank have raised $2.75 billion and $750 million, respectively, through private placements in recent weeks, Shenoi says. ([email protected])