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Monday, 18 June 2012

King Coal's return bad news for Big Oil and greener energy - The National

It takes 1.5km to brake a coal train to a standstill and nearly 9km to stop an oil supertanker.

BP's Statistical Review of World Energy, released last week, shows the world's energy economy has a similar inertia.

Despite demands for rapid transformation for the sake of the environment, the global complex of mines, wells, pipelines, wind farms, nuclear plants, power lines and petrol stations changes very slowly.

Just Falafel in Dubai to test appetite for IPO - The National

The Dubai franchise is weighing the option for an altogether different reason.

"Our objective is not to raise funds. It is to give our brand the highest possible visibility," said Fadi Malas, the chief executive of Just Falafel.

"It is very important for us, that rather than having a handful of partners, to have a few million shareholders. The only way to achieve that is by taking the company public. For us it's a huge marketing play to go public," he added.

Egypt stock tumbles on uncertainty of poll result - The National

Egypt's stock market tumbled to the lowest level in almost four months yesterday amid growing concern among investors over whether a new government will be able to take on the daunting task of reviving the economy.

The benchmark EGX 30 slumped 3.4 per cent in the first day of trade as the Muslim Brotherhood candidate Mohammed Morsi and the former premier Ahmed Shafik both claimed victory in the presidential election.

New rules ushered in by the military also hung over the markets.

gulfnews : Emirates repays $550m sukuk in full

Emirates airline said on Monday it has repaid a $550 million (Dh2.01 billion) sukuk bond in full on its maturity date June 18, 2012 and eyes more Islamic financing in the future amid the Eurozone debt crisis.
Gulf News had reported last week in an interview with the airlines’ President, Tim Clark, in Beijing, that the airline will repay its bond in full instead of refinancing it.
The $550m sukuk bond, listed on the Luxembourg Stock Exchange, was originally issued in 2005 with a seven year term, and was the first of its kind to be issued by Emirates, the carrier said in a statement, adding that it represented its “commitment to utilising a diverse range of funding tools, including Islamic financing”.

gulfnews : Infinite possibilities for Dubai-Sharjah-Ajman conurbation

In 1915, Scottish sociologist Patrick Geddes coined the term “conurbation” to denote a continuous urban area. Today, such conurbations can be found throughout the world — from the Washington D.C.-Maryland-Virginia region in the US, affectionately known as the DMV, to the National Capital Territory of Delhi, Haryana, Uttarakhand, Uttar Pradesh and Rajasthan in India.
In the UAE today, Dubai, Sharjah and Ajman, that I will refer to as DSA, despite being three separate emirates, form a continuous urban area so condensed that it is quite challenging to identify exactly where one city ends and the other begins. Egyptian urban researcher and consultant with Ajman Municipality, Dr Ghada Mahmoud Hafez, calls the DSA urban continuum “the fastest growing metropolitan area in the region”.

MENA stock markets close - June 18, 2012

 ExchangeStatus IndexChange  
 TASI (Saudi Stock Market)
 DFM (Dubai Financial Market)
 ADX (Abudhabi Securities Exchange)
 KSE (Kuwait Stock Exchange)
 BSE (Bahrain Stock Exchange)
 MSM (Muscat Securities Market)
 QE (Qatar Exchange)
 LSE (Beirut Stock Exchange)
 EGX 30 (Egypt Exchange)
 ASE (Amman Stock Exchange)
 TUNINDEX (Tunisia Stock Exchange)
 CB (Casablanca Stock Exchange)
 PSE (Palestine Securities Exchange)

Is Emiratisation on a Collission Course with the success of Emirati Entrepreneurship? | tks @UntitledChapter + @Talibs10Lessons

I still remember “Moby Dick”, the famous novel written in 1851 which tells the adventure of the narrator ‘Ishmael’ who sails on a whaling ship under the command of Captain ‘Ahab’. Thinking he has signed onto a routine commission on a normal whaling vessel, he soon realises that Captain Ahab’s real intention is the pursuit of his life-long obsession; a specific whale known as Moby – Dick, a giant whale known to destroy whalers that seek him. Captain Ahab’s obsession had cost him his leg and a ship, and eventually also costs Captain Ahab his life and his crew in a final standoff against the whale in the rough high seas.

UPDATE 1-Fitch cuts HSBC Bank Middle East VR rating | Reuters

Fitch has cut HSBC Bank Middle East's viability rating (VR) one notch because of asset quality concerns, while keeping its long-term default rating at 'AA-', one notch below the main HSBC group.

Fitch said on Monday that HBME, the Middle Eastern arm of HSBC, had reported "a substantial rise in renegotiated loans as well as faster than previously anticipated new non-performing loan (NPL) formation". It cut the VR rating to bbb from bbb+.

While the bank's NPL ratio remained near flat at 9.6 percent at the end of 2011, Fitch said this was despite improved loan recoveries and the reclassification of large NPLs in the United Arab Emirates as performing. It also said NPLs would continue to rise in 2012, albeit at a slower pace.

Egypt Stocks, Bonds Fall as Military Curtails President’s Powers - Bloomberg

Egyptian stocks fell, entering a bear market, and dollar bonds dropped after the military curtailed the powers of the nation’s newly elected president. Three-month bill yields jumped to a record.
The benchmark EGX30 Index (EGX30) slumped 3.4 percent to 4,267.87 at the 2:30 p.m. close in Cairo, the lowest level in almost five months. The gauge retreated more than 20 percent from the peak of 5,452.03 on March 7, signaling a bear market to some investors. Orascom Construction Industries (OCIC) lost the most in more than eight months. The yield on the 5.75 percent dollar bonds due April 2020 climbed 12 basis points, or 0.12 percentage point, to 7.02 percent, the highest in four weeks, according to data compiled by Bloomberg.
The country’s ruling military council issued a declaration yesterday after polls closed in the first post-Hosni Mubarak election, giving itself sole authority over its affairs, including the budget and personnel. It also acquired the power to name the 100-member committee that will draft a new constitution, and objection rights to any articles drafted that are deemed “counter to national security interests.”

Saudi keeps traders guessing on oil downside: Campbell | Reuters

Saudi Arabia has cleared up any doubts about its unhappiness with oil prices above $100 a barrel but last week's OPEC meeting has done nothing to dispel speculation that the kingdom may be willing to see crude go much lower for a while.

Crude's collapse from near $130 a barrel earlier this year has been brought about by a slowing world economy and determination on the part of Saudi Arabia to force the world to sit up and take notice when it flexes its supply muscles.

Saudi policy also appears to have subtly shifted. In 2008 Riyadh insisted it was supplying the market with all the oil that consumers wanted, this time it has taken steps to ensure that is really happening.

Bahrain to kick off roadshows for benchmark dollar bond - Bonds -

Bahrain plans to kick off investor meetings on Wednesday for a planned dollar-denominated benchmark bond issue, arranging banks said on Monday, in what would be the kingdom's first offering of non-Islamic debt since Arab Spring-inspired protests began.
Sources have indicated that Bahrain could be looking to raise as much as $1.25 billion from the sale.
The Gulf Arab state, rated BBB by Fitch Ratings and Standard & Poor's, has been hit by anti-government demonstrations in the last year, but managed to raise $750 million from an Islamic bond issue in November.

Saudi airline catering unit IPO seeks $350 million | Reuters

The catering unit of Saudi Arabian Airlines SAUD.UL is seeking to raise 1.3 billion riyals ($350 million) by floating 30 percent of its shares, the prospectus showed as the initial public offer opened to retail investors on Monday.

The sale of shares in Saudi Airlines Catering Co has been keenly awaited by investors as the company will be the first part of the Saudi flag carrier, one of the kingdom's largest state-owned entities, to be listed on the stock market.

The company is offering a total of 24.6 million shares. Institutional investors subscribed to 50 percent of them, leaving retail investors to subscribe to the other half between June 18 and 24 at a price of 54 riyals per share, which was determined by a book-building process.

Chart of the week: a picture of world oil | beyondbrics

Falling demand amid the eurozone crisis and increased production by Saudi Arabia have pushed down oil prices in recent weeks. But oil still averages over $100 a barrel for the past 18 months.  Oil is crucial to the world’s energy supply, representing a third of global energy consumption – the largest component.

So who produces it, who uses it, who has it? And how do emerging markets compare to developed economies? Chart of the week takes a look.

Last week saw the publication of BP’s World Statistical Review 2012, a highly-regarded industry overview. We have selected the top five oil consumers, producers and holders of proven reserves, a list that overlaps a fair bit, to give 11 countries.

In that 11, there are three developed economies (US, Canada, Japan), six emerging markets (Brazil, Russia, India, China, Venezuela and Saudi Arabia), and two frontier markets (Iran and Iraq).

Kuwait's emir suspends parliament | Reuters

Kuwait's emir has suspended parliament for one month, lawmakers said on Monday, ahead of the planned questioning of the interior minister by opposition members of the assembly.

The decision comes amid growing tension between the parliament and the cabinet that has forced two ministers to resign.

BP to drill for oil in eastern Jordan | Al Akhbar English

BP last week began drilling the first well in its concession in the Risha natural gas field in eastern Jordan, near the border with Iraq, the British oil major said on Monday.

The drilling follows two years of preparation and a "very successful 5,000 square km seismic acquisition program in 2011", BP said.

The well is expected to take three to four months to complete, and a number of international oil and gas service contractors as well as local firms are involved, it said.

UPDATE 1-Saudi's Jabal Omar signs $1.3 bln loan | Reuters

Saudi Arabia's Jabal Omar Development Co has signed a 5 billion riyals ($1.3 billion) loan agreement with a group of local banks to refinance an upcoming bridge loan maturity and fund the development of hotels and shops in Mecca.

The loan runs for 12 years, with a four-year grace period on repayments, the developer said in a filing to the Saudi stock exchange on Monday.

The cash will refinance a 1.35 billion riyals bridge loan, the statement added, and be used to fund the company's commercial development project in Mecca.

Air Works India Buys Stake in Dubai’s Empire Aviation Group - Deal Journal India - WSJ

Air Works India Engineering Pvt. Ltd. said Monday it has purchased a strategic stake in Dubai-based Empire Aviation Group for 1.2 billion rupees ($22 million) as part of steps to expand its footprint in the Middle East and provide aircraft management services to customers in India.

Empire Aviation is an aircraft asset management company and provides private aviation services such as aircraft sales, aircraft management, charter, and aircraft finance and insurance.

Vivek Gour, managing director of Air Works, told a news conference that the transaction will be financed by taking senior secured debt from a consortium of four private-equity firms led by KKR & Co. LP.

Dubai's Tamweel picks banks for roadshows; sukuk may follow | Reuters

Dubai-based Islamic mortgage lender Tamweel has picked banks to arrange investor meetings in Asia, Europe and the Middle East ahead of a possible dollar-denominated Islamic bond, or sukuk, arrangers said on Monday.

Tamweel, a unit of Dubai Islamic Bank, has mandated Abu Dhabi Commercial Bank, UBS and Emirates NBD to arrange roadshows, which begin on June 19 in Abu Dhabi and end in London on June 25.

Any eventual sukuk issue will be backed by properties and receivables located in Dubai, arranging banks said. It will be listed on the Irish Stock Exchange.

Emirates repays US$ 550 million sukuk in full:

Emirates airline announced today that it has repaid a US$ 550 million sukuk bond in full on its maturity date 18 June, 2012.  The sukuk bond, listed on the Luxembourg Stock Exchange, was originally issued in 2005 with a seven year term.
The US$ 550 million sukuk bond was the first of its kind to be issued by Emirates representing its commitment to utilising a diverse range of funding tools, including Islamic financing.
“The repayment of our first ever sukuk bond is part of Emirates’ varied financing strategy and reflects our robust financial position,” commented His Highness (H.H.) Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group.  “Our consistent profitability and sound business model continue to ensure that we receive sufficient offers of financing to support our long term growth.”

110 William St in FiDi Refinanced with $161.5M Loan - Citybizlist New York

Swig Equities and Silverpeak Real Estate Partners, as asset manager for Longwing Real Estate Ventures, LLC, a member of the Dubai Investment Group, have closed on the refinancing of 110 William Street, a 32-story, 900,000 square foot multi-tenant office building located in Downtown Manhattan's FiDi (Financial District) neighborhood.

The total size of the loan was $161.5 million and was led by a $141.5 million first mortgage provided by UBS Real Estate Securities, Inc. and Barclays Capital, which is expected to be securitized in an upcoming CMBS transaction.

In addition to the first mortgage loan, Pearlmark Real Estate Partners, L.L.C. provided a $20 million mezzanine loan as part of the transaction.