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Friday, 29 June 2012

Glencore and Qatar enter $26 billion poker game | Reuters

Commodities trading giant Glencore (GLEN.L) and Xstrata (XTA.L) are digging in for days or even weeks of brinkmanship to try and save Glencore's $26 billion takeover deal after Qatar's state investment fund interrupted proceedings this week with a last-minute call for better terms.

Bankers involved in the transaction have already flown out to the oil-rich Gulf state as the companies roll up their sleeves for what one person familiar with the matter described as a "poker game".

The talks will pit Glencore's strong-willed chief executive Ivan Glasenberg against Qatar Holding's "iron man" Ahmad al-Sayed, who has built up a stake of nearly 11 percent in Xstrata since the Glencore deal was announced in February.

Etihad, Qatar said to eye SpiceJet stake - Transport -

Etihad Airways and Qatar Airways are reportedly in talks to acquire a minority stake in low-cost Indian carrier SpiceJet.
According to a report by India's Business Standard, which cited sources familiar with the development, the Gulf airlines are mulling the move as the Indian government considers allowing overseas airlines to invest in domestic carriers.
When asked about the potential deal, a SpiceJet spokesperson told the paper: "Some foreign carriers have expressed interest in picking up a stake in SpiceJet if there would be a change at the policy level by the government.

U.S. sanctions may stop UAE from importing Iranian condensates | Reuters

Dubai's national oil company may have to stop importing condensate from Iran unless Washington grants it an exemption or temporary exception from this week's tightening of U.S. sanctions, diplomatic and industry sources said.

U.S. State Department officials said that financial transactions that facilitate the import of Iranian condensate are liable to a new round of measures effective June 28 that aim to cut Iran's oil revenues and force Tehran to drop its disputed nuclear program.

The fresh sanctions target condensate, produced in association with gas, which is Tehran's second-biggest source of export revenue after crude and refined products, which were targeted in earlier sanctions.

Abu Dhabi's TDIC eyes breakeven after 2011 losses | Reuters

Abu Dhabi's Tourism Development Investment Company (TDIC), builder of branches of the Louvre and Guggenheim, made a net loss of 1.27 billion UAE dirhams ($346 million) in 2011 due to asset writedowns amid a regional property slump.

The state-owned company added that higher deliveries of residential properties this year may help the state-owned developer break even in 2012.

The loss, "driven predominantly by increased depreciation of newly completed assets, was lower than projected due to strong cost control across the company", TDIC said in a statement on state news agency WAM.

Doha Festival City signs QAR3.7 billion syndicated facility -

Bawabat Al Shamal Real Estate Company WLL (BASREC) has signed a QAR 3.7 billion (US$1.02 billion) 10 year syndicated facility to finance the development of the Doha Festival City project.

QInvest acted as Financial Advisor to BASREC and Sole Bookrunner for the facility. Commercial Bank of Qatar (CBQ) and Barwa Bank took the Mandate Lead Arranger (MLA) roles with CBQ who was the original lender also acting as the Lead and Documentation Bank on the conventional tranche as well as the conventional Facility Agent. Barwa Bank was the Lead and Agent Bank on the Islamic tranche, also taking the role of Islamic Documentation Bank.

The MLAs were joined in the facility at Lead Arranger level, across the two tranches, by Ahli Bank, Doha Bank, International Bank of Qatar, Al Khalij Commercial Bank (al khaliji) , Qatar International Islamic Bank and Qatar National Bank.

Glencore expected to sweeten terms to win Xstrata | Reuters

Commodities trader Glencore , scrambling to save its $30 billion offer for miner Xstrata, is expected to sweeten its bid in order to seal the deal, after key shareholder Qatar said it could oppose the takeover on current terms.

Qatar, which remained silent on its intentions for months as it built the second-largest stake in Xstrata, said in a surprise statement on Tuesday that it supported the principle of the deal but demanded an improvement in terms from 2.8 new Glencore shares for every Xstrata share to 3.25.

Glencore, which made its long-awaited move for Xstrata in February, had been expected to improve the terms of its all-share deal in the early days after the offer was announced.

Hastie managers, workers left high and dry in UAE - ABC News (Australian Broadcasting Corporation)

Five weeks after the collapse of the Hastie Group, 1,000 staff based in the United Arab Emirates (UAE) have been left in the lurch, with their former managers forced to support them out of their own pockets.

In Australia, about 80 per cent of the 2,700 workers made redundant are now back working for other contractors, having received their full termination entitlements.

But the 1,000 mainly Indian and Bangladeshi labourers are yet to see a cent of their entitlements, known locally as gratuities, after Hastie's bank account was drained of $3 million just days before administrators were appointed.

‘Qtel’s planned buyout of Wataniya credit-negative’

Moody’s Investors Service says that the proposed minority buyout by Qatar Telecom Q.S.C. (“Qtel”; rated A2/stable) of shares in Wataniya (not rated) is credit-negative as it will reduce Qtel’s liquidity headroom given that this is the second significant minority buyout that it has announced within a month. Moody’s explains that Qtel’s A2 rating and stable outlook remain unchanged, and believes the company can absorb the initial negative cash impact pro-forma the combined effects of material upcoming and closed transactions.

Emirates A380s Said to Be First Used as U.S. Bond Collate - Bloomberg

Four Airbus SAS A380 passenger jets being leased to Emirates Airline are the first of their kind to be used as collateral in a U.S. corporate bond offering, according to a person familiar with the transaction.
Doric Nimrod Air Finance Alpha Ltd., a leasing company, sold $587.5 million of debt secured by four A380s to be operated by Dubai-based Emirates, according to data compiled by Bloomberg. The two-part offering was the first sale of dollar- denominated bonds backed by a non-U.S. airline’s planes, said the person, who wasn’t authorized to discuss the deal publicly.
Emirates is the biggest customer for the A380, the world’s largest passenger aircraft. With just 75 in service, investors needed reassurance that the plane will be valuable collateral in case of a default, said Mark Lapidus, managing director of Doric Asset Finance Ltd., the issuer’s London-based parent.

Bonanza of bond sales in region - The National

The strongest six months for sukuk issuance on record has put the Arabian Gulf's bond markets on track for their best year yet.

The news comes as the region takes advantage of low interest rates to load up on cheap debt.

Companies and governments have sold a total of US$20.4 billion (Dh74.93bn) of bonds so far this year, including $12.4bn of sukuk, according to Bloomberg data. Both totals are the highest on record.