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Thursday, 8 April 2010

Qatar Islamic Bk $500M Sukuk On Hold Over Price Worry-Source -

Qatar Islamic Bk $500M Sukuk On Hold Over Price Worry-Source -

Qatar Islamic Bank (QIBK.DO), or QIB, the country's second-largest lender by market value, will delay selling sukuk worth at least $500 million due to a blip in market confidence in the wake of Dubai World's restructuring, people familiar with the matter said.

"The bond is on hold because they were worried about pricing," one person familiar with the lender's plans told Zawya Dow Jones.

In February, Zawya Dow Jones reported that QIB, was mulling the launch of a sukuk, or Islamic bond, worth at least $500 million to improve its debt-to-equity ratio to help it meet growth plans. Credit Suisse Group (CS), HSBC Holding PLC (HBC) and QInvest, the Doha-based investment bank, were appointed as advisors on the deal.

Creditor claims could delay Dubai debt deal: experts | Reuters

Creditor claims could delay Dubai debt deal: experts | Reuters

Dubai's special tribunal, set up to hear cases against indebted state firm Dubai World, could throw efforts to restructure $26 billion in debt into disarray if just one creditor files a claim, legal experts say.

Dubai World DBWLD.UL is lobbying banks to sign up for the proposal, but even if the required supermajority of 66.66 percent of creditors endorses the plan, a claim at the tribunal could halt the restructuring plans and keep lenders locked in.

"If a creditor was to go to the tribunal, a standstill would be put in place," said Philip Abbott, partner at Simmons & Simmons.

Dubai Shares Fall to Three-Week Low, Led by Emaar, on S&P Move

Dubai’s benchmark index declined to the lowest level in almost three weeks after Standard & Poor’s lowered Emaar Properties PJSC credit rating and placed Dubai Islamic Bank PJSC on negative outlook.

Emaar, the developer of the world’s tallest tower in Dubai, dropped 2.1 percent. Dubai Islamic Bank, the United Arab Emirates’ biggest Islamic lender, fell to the lowest level since March 18. Shuaa Capital PSC retreated the most in more than six weeks. The Dubai Financial Market General Index lost 1.9 percent to close at 1,765.23, the ninth worst performer among 93 indexes tracked by Bloomberg. The measure lost 5.1 percent in the week, after gaining 16 percent last month.

“The market is going through a classic case of loss aversion after the rally in March,” said Sameh Hassan, director of research at Rasmala Investment Bank Ltd. “With this state of mind, investors look for reasons to justify their sales, and an S&P downgrade satisfies that need.”

Emaar MGF Plans to Sell Shares in an IPO in 90 Days

Emaar MGF Land Ltd., the Indian joint venture of the United Arab Emirates’ biggest developer, plans to sell shares in an initial public offering in 90 days.

The property company will decide the amount to be raised closer to the offer date, Shravan Gupta, executive vice chairman and managing director of the New Delhi-based developer, told reporters today. Emaar MGF last month got approval from the Indian capital markets regulator for a proposed 38.5 billion rupee ($866 million) IPO.

The share sale would be the developer’s second attempt to tap investors after poor demand forced it to withdraw a $1.64 billion IPO in February 2008. Emaar MGF may compete with property companies including Lodha Developers Ltd., Sahara Prime City Ltd. and Nitesh Estates Ltd. in seeking to raise a combined 162 billion rupees from IPOs in India.

Buyout firms flock to sale of Dubai-owned ISS

About 10 buyout houses are preparing to make indicative bids on Monday for Inchcape Shipping Services (ISS), the $700 million-plus port and shipping agent owned by Dubai World's investment arm Istithmar.


The keen interest highlights the ongoing appeal of so-called secondary buyouts, where financial investors sell each other portfolio companies, despite concerns that previous owners may have already withdrawn much of the value in a company.

Dubai World, the debt-laden conglomerate, is in the throes of a $9.5 billion government rescue. It could sell more assets, although its chief restructuring officer has pledged to avoid a "fire sale" and Dubai insists it can fund the rescue.

Dubai's Bank Islam stake sale unlikely by June-report

Dubai Group's plan to sell its stake in Malaysia's Bank Islamis unlikely to be completed by June, Bank Islam's managing director was quoted as saying on Thursday.


"I don't think it can be done by June," Zukri Samat was quoted as saying by Malaysia's official Bernama news agency. "But on our end, we hope there is a good bidder.

Dubai Group, an investment vehicle owned by the ruler of Dubai, had said in October it was reviewing options for its stake in Malaysia's Bank Islam as it shifts its strategic focus closer to home,

Etisalat seeks cut in federal royalty fee

UAE-based telecoms operator Emirates Telecommunications Corporation (Etisalat) has asked the government to reduce the concession deducted from its annual profits, Emirates Business reports. Etisalat currently pays an annual federal royalty of 50% of its yearly net profit, which totalled AED8.836 million (USD2.4 billion) in 2009 after federal royalty, an increase of 16% over the previous year. The operator’s CEO, Salem Al Sharhan, said that the request comes from not only Etisalat’s shareholders, but also the corporation itself, noting: ‘We seek reduction rather than cancellation. And the government strongly understands our demand.’ According to TeleGeography’s GlobalComms Database, Etisalat is the UAE’s largest telecoms operator by subscribers; at the end of 2009 the company claimed a mobile customer base of 7.74 million, as well as 1.31 million fixed telephony users and over 600,000 broadband subscribers.END

DP World, Dubai Multi Commodities Ratings Cut by S&P

DP World, Dubai Multi Commodities Ratings Cut by S&P (Update1) -

DP World Ltd., Dubai Multi Commodities Centre and Emaar Properties PJSC had their credit ratings cut by Standard & Poor’s, which said the state-owned companies are unlikely to receive “extraordinary” support from the government.

DP World, the Middle East’s biggest port operator, and Emaar Properties PJSC, the builder of the world’s tallest tower, were lowered to BB from BB+, S&P said in an e-mailed statement today. Dubai Multi Commodities, the state-owned tax-free business park in the United Arab Emirates, had its credit rating reduced to B from B+.

“We do not incorporate into the ratings on these entities any expectation of extraordinary support from the government of Dubai,” Trevor Pritchard, a London-based analyst at S&P, wrote in the statement.

Dubai has cash to fund restructuring: Al Shaibani

  • Mohammad Al Shaibani
  • Image Credit: Gulf News 

Dubai has the money to pay its share of Dubai World's rescue plan and can help other state-linked firms that may be facing "small issues", the vice-chairman of the emirate's top fiscal body said in an interview.

Dubai unveiled a $9.5-billion (Dh34.8-billion) rescue plan for Dubai World last month, as part of its offer to repay creditors of the state-owned conglomerate. The plan relies on Dubai providing $3.8 billion from "internal government resources".

"We have money available, from companies like ICD [Investment Corporation of Dubai], quite big government dividends, so this is not an issue," said Mohammad Al Shaibani, who helps oversee the distribution of aid to state-linked firms through Dubai's Financial Support Fund, set up in the wake of the financial crisis.

Nakheel mega-projects won't see light of day

Many of Dubai’s most ambitious mega-projects will likely never see the light of day despite billions of dollars the government plans to pump into struggling state-owned developer Nakheel, analysts told Maktoob News.

The Dubai government announced last month it would inject $8 billion into Nakheel to enable it to finish projects and pay contractors, part of a proposal to restructure $23.5 billion worth of debt linked to its parent Dubai World.

Analysts said the money will not be enough for Nakheel to revive stalled work on its mega-projects, including a 1 km high tower and palm-shaped island larger than Manhattan, with a recovery in the local real estate market looking remote.

Dubai's Limitless target of first tribunal

A special tribunal set up by Dubai to handle debt claims against the subsidiaries of its Dubai World holding company has received its first case, a key filing that may set the tone for other potential claims.

A claim was filed against Limitless LLC on April 5 by a former employee of the company and a notice has been served to the company, a spokesman for the special tribunal's registrar's office said.

Additional details will be provided after Limitless confirms receipt of the notice.

A spokeswoman for Limitless said, "This is a legal dispute and it is inappropriate for us to comment."

CBK investors delay old board's exit to examine pay

Commercial Bank of Kuwait (CBK) (CBKK.KW) shareholders elected a new board on Wednesday but did not release the old board at the request of a shareholder who asked for their pay to be examined.

Separately, Standard and Poor's cut its long-term rating on the Gulf Arab state's third-largest lender to 'BBB' from 'A-' and affirmed its 'A-2' short-term rating. [ID:nWNA7782]

The CBK board resigned in January, but the bank did not give a reason for their departure.

Moody’s Dubai World concerns ease

Moody’s said on Wednesday its concerns over possible contagion from Dubai World, the troubled conglomerate, to DP World, the port operator that Dubai World owns, had been alleviated.

The ratings agency confirmed DP World’s ratings, which were downgraded to Ba1 in December with a review for a possible further downgrade after Dubai World surprised markets by announcing its intention to restructure its debts.

Dubai World, one of the government’s biggest holding companies, last month presented its restructuring proposal on more than $24bn in debt. DP World has been so far “ringfenced” from the broader restructuring, which is focusing on the holding company and development arm Nakheel.

Dubai World gives debt markets a boost

Dubai World’s debt restructuring proposals have provided an important fillip for regional debt markets, which had gummed up following the conglomerate’s shock announcement of a standstill in November.

The proposals included a promise to pay back property developer Nakheel’s Islamic bonds fully and on time – provided creditors agree to the plan. This move sparked a rally in the Gulf’s credit markets.

The extent of the improvement in sentiment will now be tested by Dewa, Dubai’s utility provider, which is in the midst of an investor roadshow to assess whether it can revisit its $3bn bond programme.

Comment: Cheap energy addiction must end

The Gulf Arab countries have never had much fresh water or democracy, but the inhabitants have always had energy to burn when it comes to cooling large homes and sparkling office towers.

During the six-year economic boom that ended in 2008, it was domestic energy that powered the sprawl of Abu Dhabi, Riyadh, Doha, and Dubai.

But the promise of cheap energy has gone wrong. Consumption has risen 7 per cent a year, reaching levels that even the vast reserves of the Gulf cannot match.