Eastward bound: Why Gulf banks are tapping Asia’s capital markets 

For decades, the US and Europe were the default international destinations for Gulf banks raising debt. These markets offered deep liquidity, investor familiarity and established issuance frameworks. But the geopolitical and financial dynamics that long underpinned this east-to-west capital flow are shifting.

Illustration: iStock

Today, Gulf banks are increasingly looking east – to markets such as Singapore, Hong Kong and Taipei – as strategic alternatives for capital raising. Private placements, Formosa bonds and rising interest in Panda bonds are providing new avenues to tap Asia’s capital markets.  

The appeal lies in a combination of factors: competitive pricing; growing demand from Asian institutional investors; access to longer tenors; and the opportunity to diversify away from traditional investor pools. For large and increasingly sophisticated Gulf issuers, this eastward shift enhances financial resilience, widens

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