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Monday, 13 March 2017

Kuwait’s debut sovereign bond sale draws more than $20bn in investor bids

Kuwait’s debut sovereign bond sale draws more than $20bn in investor bids:

"Kuwait has extended the recent run of mega-debt issues in the Gulf with a debut sovereign bond sale that attracted more than $20bn of investor bids.

The $3.5bn 5-year and $4.5bn 10-year bonds have been sold at a yield of around 2.8 per cent and 3.6 per cent respectively.

Kuwait timed its bond debut ahead of a US Federal Reserve meeting on Wednesday at which policymakers are expected to raise US interest rates – a move that could spark a rise in global bond yields, making it more expensive for governments to borrow."



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NBAD and FGB merger on track to complete by April 1 | The National

NBAD and FGB merger on track to complete by April 1 | The National:

"The merger of Abu Dhabi’s two biggest banks is on track to complete by April 1.

The boards of National Bank of Abu Dhabi and FGB, its closest competitor in the emirate, have met to hammer out the final details of the combination.

"We are confident that the merger process will be successful and that we have selected very capable and experienced individuals for our board who are instrumental in driving our plans forward and desired outcomes," said Sheikh Tahnoon bin Zayed, the chairman-designate of the new bank."



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Kuwait Tightens Price Guidance for Debut International Bond - Bloomberg

Kuwait Tightens Price Guidance for Debut International Bond - Bloomberg:

"Kuwait tightened price guidance on its debut international dollar bond sale as OPEC’s fifth-biggest producer joins regional governments in raising debt to bridge budget deficits.

The Gulf nation may price the five-year debt in the area of 85 basis points above similar maturity for U.S. Treasuries and the 10-year bonds in the plus 110 basis points area, according to a person familiar with the offering. Initial guidance was in the 100 and 120 basis points area, the person said, asking not to be identified as the information is private. The offer has generated about $20 billion in bids and final pricing will be set on Monday, the person said."



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Saudi Aramco selects FTI as global media advisor for IPO: sources | Reuters

Saudi Aramco selects FTI as global media advisor for IPO: sources | Reuters:

"Saudi Aramco [IPO-ARMO.SE] has chosen U.S.-based FTI Consulting (FCN.N) as global media adviser for what is expected to be the world's largest initial public share offer, industry sources said. In recent months the Saudi national oil giant has been appointing advisers to help arrange the offer. Investment banks Moelis & Co(MC.N), Evercore(EVR.N), JPMorgan Chase & Co (JPM.N) and Morgan Stanley (MS.N) will play roles, and more banks will be chosen, the sources said. FTI "will support Aramco's communications team ahead of the sale to handle the storm of the IPO", said one of the sources."



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Kuwait Becomes First OPEC Nation to Call for Longer Oil Cuts - Bloomberg

Kuwait Becomes First OPEC Nation to Call for Longer Oil Cuts - Bloomberg:

"Kuwait wants OPEC to extend output cuts beyond June, becoming the producer group’s first member to call for more time to balance the global oil market as the rally that boosted prices initially on the curbs has faded. U.S. inventories have climbed more than expected, causing prices to decline even as global producers cut their output, Kuwait’s Oil Minister Issam Almarzooq said, according to official news agency Kuna. Kuwait supports rolling over the oil cuts, though it’s too early for the Organization of Petroleum Exporting Countries to agree on an extension, he said. “Kuwait supports the extension of the agreement after June,” Almarzooq said. An extension will ‘‘accelerate the rebalancing of the global oil market and will contribute to the return of prices to levels acceptable for producing countries and for the petroleum industry in general.”"



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MIDEAST STOCKS-Dubai's Shuaa, GFH jump on merger hopes; insurance, banks hit Saudi | Reuters

MIDEAST STOCKS-Dubai's Shuaa, GFH jump on merger hopes; insurance, banks hit Saudi | Reuters:

"Speculation over a possible merger between Dubai-based Shuaa Capital and Bahrain's GFH Financial spurred heavy turnover in their shares on Monday, while the banking and insurance sectors dragged the Saudi Arabian stock index lower. Shuaa climbed 3.2 percent to a seven-year closing high of 1.93 dirhams, bringing its gains to 18.4 percent since Sunday. The Dubai-listed shares of GFH, the market's most heavily traded stock, surged 7 percent while its less liquid Bahrain-listed shares jumped 9.7 percent. On Sunday Shuaa announced it had agreed to acquire Integrated Capital and Abu-Dhabi based brokerage Integrated Securities, both controlled by Abu Dhabi Financial Group (ADFG), which last November bought 48.36 percent of Shuaa."



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JPMorgan, HSBC, Citigroup Said to Be Hired on Saudi Dollar Sukuk - Bloomberg

JPMorgan, HSBC, Citigroup Said to Be Hired on Saudi Dollar Sukuk - Bloomberg:

"Saudi Arabia hired Citigroup Inc., JPMorgan Chase & Co. and HSBC Holdings Plc as global coordinators on its international Islamic bond sale, according to people with knowledge of the matter. The kingdom also picked Deutsche Bank AG and BNP Paribas SA among others as lead managers for the sale, the people said, asking not to be identified as the talks are private. The sukuk could come as soon as this month, two of the people said."



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UAE's DAMAC mandates banks for dollar bond issue -source | Reuters

UAE's DAMAC mandates banks for dollar bond issue -source | Reuters:

"DAMAC Properties, a United Arab Emirates real estate developer, has mandated banks for a U.S dollar-denominated debt sale, a source close to the matter said on Monday. The developer has a $100 million sukuk issue maturing on March 21 and a $650 million sukuk issue maturing in 2019."



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Japan PM Abe seeks Saudi support for Aramco listing in Tokyo | Reuters

Japan PM Abe seeks Saudi support for Aramco listing in Tokyo | Reuters:

"Japan's Prime Minister Shinzo Abe asked Saudi Arabia's King Salman on Monday to support a listing of oil giant Aramco's shares in Tokyo, as financial centers in Asia and elsewhere step up efforts to win the coveted $100 billion listing. Abe made the request for support on the Aramco listing to the Saudi monarch, who responded by saying the kingdom would look into the request because he wants Japanese investors to buy Aramco shares, Japan's Deputy Chief Cabinet Secretary Kotaro Nogami told reporters. The two leaders met on Monday, the second day of the king's visit to Japan, part of a month-long Asian tour."



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Saudi Arabia's Billionaire Olayan Family Plans Local Asset Sales - Bloomberg

Saudi Arabia's Billionaire Olayan Family Plans Local Asset Sales - Bloomberg:

"Saudi Arabia’s billionaire Olayan family, Credit Suisse Group AG’s largest shareholder, is considering selling shares in some of its local assets, according to a company spokesman.

Olayan Financing Co., which controls the family’s investments in the Middle East, may offer shares in one or more of its operating companies to the public through an initial public offering, the spokesman said by email. Olayan Financing manages more than 40 companies in the Middle East, including the regional Burger King franchise, according to its website.

The company is also considering setting up a holding company for some of its assets and may IPO that, according to people familiar with the plans. Olayan Financing is already in talks with potential financial advisers for the offering, which could happen as early as 2018, the people said, asking not to be identified as talks are private. Final decisions on which entities may be listed haven’t been made and the plans could change, they said."



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I’ll be back: oil’s price slump is tough to kill | The National

I’ll be back: oil’s price slump is tough to kill | The National:

"Like the Terminator returning after being blown apart, this oil market slump is proving hard to kill. At the end of last week, prices, which had been very stable all year suddenly plunged by 8 per cent. This shocked Opec representatives at the industry’s big CeraWeek pow-wow in Houston, but it may not be all bad news for the big oil countries.

Brent crude fell to US$51.37 per barrel from $55.90, its lowest closing price since November 29, while the US’s West Texas Intermediate was even harder hit. The slump came on the back of news showing US crude stockpiles rising to a record high of 528 million barrels, capping nine consecutive weeks of gains. The market was also nervous about signals from Opec ministers that the current deal on production cuts might not be extended after the organisation’s May 25 scheduled meeting and continuing increases in US shale oil drilling and production.


The build in inventories was, in itself, not so surprising. US refineries are going through spring maintenance after running flat out for months, so their crude use is down. It does not necessarily signal that American oil output is stronger than shown in official figures. The International Energy Agency believes that Opec cuts have helped developed-country stocks drop below 3 billion barrels for the first time since December 2015, although China and other emerging nations continue to add inventories."



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Rate hikes: GCC braces for higher cost of funds and currency appreciation | GulfNews.com

Rate hikes: GCC braces for higher cost of funds and currency appreciation | GulfNews.com:

"As global markets anticipate a 25-basis point Fed rate hike this week, on the back of the strong ADP report,
GCC economies with pegged currencies are expected to face further rise in cost of funds and impact of currency appreciation starting the week ahead.
Analysts said apart from the immediate impact of a rate hike on Wednesday, future guidance on rates, growth and inflation outlook will be key for GCC economies."



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Qatar to list two ETFs within two months - official | Reuters

Qatar to list two ETFs within two months - official | Reuters:

"Qatar's stock market will list two exchange-traded funds in the next two months, the chief executive of the Qatar Financial Centre (QFC) Authority said on Monday. "Within the next month or two, there will be the listing of two exchange-traded funds, one Islamic and one conventional," Yousuf al-Jaida told reporters. Last October, bourse officials told Reuters that Qatari banks Masraf Al Rayan and Doha Bank planned to launch the Gulf state's first ETFs by the end of 2016. Jaida did not comment on Monday on the change of schedule."



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Oil Bulls Exit Before Market Dive on Swollen U.S. Stockpiles - Bloomberg

Oil Bulls Exit Before Market Dive on Swollen U.S. Stockpiles - Bloomberg:

"Oil’s fall from grace last week started with hedge funds, and it may only get worse from here. Investors cut bullish wagers on West Texas Intermediate crude to a one month-low, according to U.S. Commodity Futures Trading Commission data, a move that came just prior to a market dive that sent prices below $50 a barrel for the first time since December. "This report is just the beginning," said John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy. "The volume and breadth of the decline this week show that there was massive liquidation. Next week’s report will be the blockbuster.""



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Kuwait Sets Initial Price Guidance for Debut International Bond - Bloomberg

Kuwait Sets Initial Price Guidance for Debut International Bond - Bloomberg:

"Kuwait set the initial price guidance on its debut international dollar bond sale as OPEC’s fifth-biggest producer joins regional governments in raising debt to bridge budget deficits. The Gulf nation may price the five-year debt in the area of 100 basis points above the benchmark midswap rate and the 10-year in the plus 120 basis points area, according to a person familiar with the offering. Final pricing will be set on Monday, the person said, asking not to be identified because the information is private. Kuwait follows Oman in selling debt before the U.S. Federal Reserve meets this week. Policy makers are expected to raise the benchmark interest rate by 25 basis points. The Kuwaiti government said in July it may raise as much as $10 billion from global debt markets. The country is rated AA at S&P Global Ratings, the third-highest investment grade."



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MIDEAST STOCKS-Gulf mostly weak on oil though Dubai's Shuaa, GFH leap | Reuters

MIDEAST STOCKS-Gulf mostly weak on oil though Dubai's Shuaa, GFH leap | Reuters:

"Stock markets in the Gulf were mostly soft in early trade on Monday as crude oil prices languished near three-month lows, but strength in Dubai's Shuaa Capital and GFH Financial supported that bourse.

Saudi Arabia's index was down 0.2 percent after 40 minutes of trade as most petrochemical shares fell; heavyweight Saudi Basic Industries dropped 0.5 percent.

Bank Aljazira, which had surged its 10 percent daily limit on Sunday after announcing plans to increase its share capital through bonus shares, fell 1.0 percent."



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