Emerging market debt issuance starts year with record bang

By Marc Jones

LONDON, Jan 6 (Reuters) - Emerging market governments and companies had a record first week of the year in terms of debt issuance, selling $28 billion worth of bonds between them as they look to play catch up after last year's market turbulence.

Indonesia, Hungary, Slovenia, Romania and Hong Kong were among those fast out the blocks, helping sovereigns sell $21.3 billion of debt compared to $13.4 billion in the first week of 2022, analysts at Morgan Stanley estimated.

Another $6.5 billion came from EM corporates and takes the combined $28 billion amount well clear of last year's $19 billion week one total and surpasses 2021's previous record of $24 billion.

Surging global interest rates meant sovereign debt issuance halved to a more than decade-long low of $87 billion last year. That compared to $176 billion in 2021 and a roughly $230 billion in 2020 when governments borrowed record amounts during the COVID-19 pandemic.

Combined with sharply lower corporate debt issuance, last year's overall total was just over $300 billion. That was also less than half of 2021's $713 billion according to Morgan Stanley's calculations and also the lowest amount since 2021.

(Reporting by Marc Jones; Editing by Susan Fenton)

((marc.jones@thomsonreuters.com; +44 (0)20 7513 4042; Reuters Messaging: marc.jones.thomsonreuters.com@reuters. Twitter @marcjonesrtrs))