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Thursday, 21 June 2012

gulfnews : Emirates to announce $1b financing for A380s

Emirates, the world’s biggest airline by international passenger traffic, will “soon” announce $1 billion (Dh3.67 billion) in financing to pay for four Airbus A380s it ordered, Shaikh Ahmad Bin Saeed Al Maktoum, President of Dubai Civil Aviation and Chairman and chief executive of Emirates airline and Group, said in Dubai on Thursday.
Reuters reported on Wednesday that Emirates airline will lease aircraft from a financing firm which will issue certificates worth $587.5 million across two tranches, a prospectus showed on Thursday.

Qatar's QNB in $1.5 bln loan refinancing - sources | Reuters

Qatar National Bank , the Gulf Arab state's largest lender, has picked five banks to lead the syndication of a $1.5 billion loan refinancing, in a deal launched on Thursday, sources familiar with the matter said.

The three-year loan, which replaces a $1.85 billion facility set to mature on July 22, will be marketed by Bank of Tokyo-Mitsubishi UFJ, Deutsche Bank, HSBC , JP Morgan and Standard Chartered, four sources said.

The margin on the loan is 100 basis points over Libor, one of the sources said. The all-in pricing is said to be around the 115 bps mark, two of the sources said. All-in means the price includes both the interest rate attached to the loan and the fees which the banks will receive for taking part.

Saudi Arabia: Time for the old men to give way | The Economist

FOR all the attention Egypt’s stricken Hosni Mubarak received this week, the death of another antediluvian hardliner in the Arab world’s other great power is more significant. Prince Nayef, heir apparent to King Abdullah of Saudi Arabia, epitomised the ruling family’s resistance to change. The interior ministry, which he ran for the past 37 years, has been the bane of reformers. So far there has been no sign that his death will free the forces of change. But time is no longer on the side of the House of Saud. If it wants to survive, the ageing royal family needs to get moving.

By far the biggest and richest country in the Arabian peninsula, Saudi Arabia is the font of Islam and the producer that does most to set the global oil price. For Prince Nayef and his fellow princes, the kingdom has been an oasis of stability and common sense in a sea of chaos and revolutionary excess. The Arab spring is anathema to them. They hate and fear both the secular revolutionaries and the Muslim Brotherhood. Although they discreetly backed the overthrow of Muammar Qaddafi in Libya because his regime seemed even more dangerous than the alternative, they viewed the fall of Mr Mubarak as a disaster.

MENA stock markets close - June 21, 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)

gulfnews : Habshan-Fujairah pipeline starts pumping crude oil

Abu Dhabi Thursday started exporting crude oil, Murban blend, through Habshan-Fujairah pipeline to bypass the Strait of Hormuz.
The Habshan-Fujairah pipeline, owned by the International Petroleum Investment Company (IPIC), an investment arm of the government of Abu Dhabi, to secure flow of crude oil from the Emirate of Abu Dhabi to the world, Dr. Numan Ashour, A UAE-based economist, told Gulf News.
Ashour added: “Construction works had started in the project in 2008 and it aimed to avoid any threats to shut the Strait of Hormuz where most the GCC crude oil is passing through.”

Dubai bond yields compress as investors return | Reuters

Dubai's sovereign bonds have rallied this week, benefitting from good liquidity in the market as well as a rise of investor confidence in the high-flying emirate's ability to repay debts and sustain growth.

Traders cited a general improvement in investor sentiment towards Dubai over the last several months, thanks to its progress in restructuring corporate debt and its image as a safe haven amid regional instability.

Dubai's most recent sovereign issue, a two-tranche, $1.25 billion Islamic bond, or sukuk, has tightened substantially since its launch at the start of May.

Persian Gulf Stocks: Dubai Financial Market and Taqa Moves - Bloomberg

Dubai’s benchmark DFM General Index (DFMGI) fell 0.4 percent to 1,470.45, the lowest since June 14, at the close in the emirate. The index rose 0.5 percent this week. Qatar’s QE Index (DSM) decreased 0.6 percent today, while Saudi Arabia’s market was closed for the weekend.

Geojit to lure Arab investors to Indian bourses - NY Daily News

Financial services company Geojit BNP Paribas Thursday launched its Qualified Foreign Investors (QFI) Investment service to attract cash-rich Arab investors to Indian stock markets.

As a qualified depository participant (QDP) approved by the market regulator, SEBI, across the two depositories CDSL and NSDL, the company will cater to the investment needs of foreign investors through its network of joint ventures in UAE, Saudi Arabia, Oman, Kuwait and Bahrain.

Managing director C.J. George said the Indian economy, seen in the context of the global financial turmoil, offered tremendous long-term investment opportunities to foreign investors who are looking for diversifying their investment portfolios.

MIDEAST DEBT-Investors to buy Bahrain despite deficit, unrest | Reuters

Running a state budget deficit and facing a prolonged period of civil unrest, Bahrain is not in the same league for investors as the Gulf's wealthier oil exporters. But good timing and strong demand for regional assets in general mean a planned bond issue by the tiny kingdom is likely to go well.

Bahrain is sounding out investor appetite at roadshows this week for a possible issue of an international, conventional bond. Bankers said Bahrain's first conventional debt offering since 2010 would be open to qualified investors in the United States and elsewhere, and might be as large as $1.25 billion.

Bahrain last tapped the international market in November with a $750 million, seven-year sukuk (Islamic bond), which was largely sold to investors in the Middle East. The upcoming issue will not be able to count on interest from a deep pool of Islamic investment money in the Gulf, so it will be a tougher test of market confidence in Bahrain.

Russia: oil gloom over St Petersburg | beyondbrics

Oil prices slipped another notch on Thursday, putting pressure on producers, not least Russia, where the US$-denominated RTS index was down by 1.4 per cent around noon, Moscow time.

It was hardly an auspicious backdrop for the St Petersburg Economic Forum, Russia’s premier business conference, which is hosted personally by president Vladimir Putin.

But what to do? Russia is even more dependent on oil than it was 12 years ago when Putin first took power. So it’s not surprising that with Brent crude down 0.7 per cent at $92 a barrel, investors are jittery.

Analysis: Texas refinery crisis rattles Saudi oil export drive | Reuters

Saudi Arabia's unexpected surge in oil exports to the United States this year has fallen into question following a deepening crisis this month at the kingdom's jointly owned and newly expanded Texas refinery.

With the huge 325,000 barrel per day (bpd) crude oil unit at Motiva's Port Arthur, Texas, refinery now expected to be out of commission for as long as a year, crippling the biggest plant in the United States just weeks after the completion of a $10 billion expansion project, the Saudis are likely to throttle back U.S. exports that hit four-year peaks in recent months.

But a deeper look at detailed import data suggests that any curbs on production may not be as deep as many expect. In fact, a Reuters analysis of government data shows that the 27 percent jump in Saudi shipments in the first quarter was driven by higher sales to a variety of customers, not only Motiva, which the kingdom jointly owns with Royal Dutch Shell (RDSa.L).

South Korea, Taiwan, UAE, Qatar Fail to Secure MSCI Upgrades - Bloomberg

South Korea, Taiwan, the United Arab Emirates and Qatar failed to secure an upgrade at MSCI Inc. (MSCI), whose stock indexes are tracked by investors with about $7 trillion in assets.
The New York-based index provider will keep South Korea and Taiwan’s emerging-market status, and Qatar and the U.A.E.’s frontier classification, it said in a statement yesterday. The two Asian countries will be kept under review for potential elevation to developed markets, while the Persian Gulf nations will remain under review for possible reclassification to emerging markets, it said.
MSCI tracks economic development, trading volumes and market accessibility to assess market classifications. Upgrades could lead to the nations’ equities luring more of the investor assets that follow MSCI’s gauges. Winning developed status could draw a net $8.3 billion to South Korea and $5.2 billion to Taiwan, HSBC Holdings Plc analysts led by Tom Zhou wrote in a June 18 report.