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Thursday, 8 March 2018

Saudi concerned about risks with New York IPO for Aramco: CNN

Saudi concerned about risks with New York IPO for Aramco: CNN: "Saudi Arabia has concerns about the risks that oil giant Aramco would run by choosing New York as the venue for its $100 billion market listing, Energy Minister Khalid al-Falih said in an interview with CNN.

"I would say litigation and liability are a big concern in the U.S.," al-Falih was quoted as saying by CNN. "Quite frankly, Saudi Aramco is too big and too important for the kingdom to be subjected to that kind of risk." cnnmon.ie/2p1Jwdd

The government has said it plans to sell about 5 percent of Aramco, hoping to raise some $100 billion or more in what would likely be the world’s biggest initial public offering (IPO). "



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Aramco Leads Raft of Saudi-U.K. Deals in Prince's Visit - Bloomberg

Aramco Leads Raft of Saudi-U.K. Deals in Prince's Visit - Bloomberg:

"Saudi Arabia’s national oil company signed a batch of deals with U.K. companies including Royal Dutch Shell Plc as Crown Prince Mohammed bin Salman visits the nation in an effort to demonstrate the kingdom is open for business. Saudi Arabian Oil Co., commonly known as Aramco, is among companies from the kingdom that will undertake joint projects worth at least $2.1 billion stretching from energy to health care and real estate, according to people familiar with the matter. That includes collaboration with Shell on natural gas, a crude oil to chemical project with Amec Foster Wheeler Plc, and a partnership with think tank Chatham House to create a “broader understanding of Saudi Aramco among a global audience.” The transactions are happening against a backdrop of rapid economic changes initiated by the prince, who is next in line to the throne in the Middle Eastern monarchy. His more open approach has generated worldwide curiosity about how the largest oil producer in the Organization of Petroleum Exporting Countries will now approach its energy sector. Saudi Aramco, known for closely guarding information about its business, intends to list on public exchanges this year. "



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Crude Tumbles as Rising Supply Counters Bullish Demand Outlook - Bloomberg

Crude Tumbles as Rising Supply Counters Bullish Demand Outlook - Bloomberg:

"Crude spiraled to the lowest level in three weeks as rising U.S. supply and dollar strength eclipsed bullish demand outlooks. Futures in New York tumbled 1.7 percent Thursday. While Goldman Sachs Group Inc. forecasted strong global consumption growth, crude production and stockpiles in the U.S. climbed higher in the latest inventory report. A strengthening dollar also pushed crude lower. “If you look back at the report and look back at sentiment, it’s getting hard for these bullish, speculative positions to hang on,” Rob Haworth, who helps oversee $151 billion in assets at U.S. Bank Wealth Management in Seattle, said by telephone. Speculators “are coming around to the idea that this may not be a runaway bull market yet, even though supply and demand are a little more in balance,” he said."



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Qatar Is Shipping In 3,000 Cows From California, Arizona and Wisconsin - Bloomberg

Qatar Is Shipping In 3,000 Cows From California, Arizona and Wisconsin - Bloomberg:

"The nine-month Saudi-led embargo of Qatar has an undisputed mascot for Doha’s defiance: the cud-chewing American cow. Thousands of airlifted dairy cows landed in Qatar in the first months of the boycott that Saudi Arabia, the United Arab Emirates, Bahrain and Egypt established against the country in June. The airborne bovines created a spectacle that highlighted the gas-rich sheikdom’s ability to overcome sanctions and provide fresh milk to its 2.7 million residents. The herd settled at Baladna Farms, 50 kilometers (31 miles) north of Doha. The location, which includes an amusement park, restaurant and sheep, has almost become a pilgrimage site for Qatari and foreign visitors who bear witness at the automated milking carousel."



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Saudi Oil Minister Says Aramco IPO Could Be Delayed to 2019 - Bloomberg

Saudi Oil Minister Says Aramco IPO Could Be Delayed to 2019 - Bloomberg:

"Saudi Arabia’s energy minister hinted the initial public offering of the state oil company Aramco could be delayed until 2019, pushing back a central plank of Crown Prince Mohammed bin Salman’s plan to modernize the economy.


Khalid Al-Falih also said the IPO, potentially the largest ever, would be “anchored” by a listing on Saudi Arabia’s local exchange and any international listing would be announced in due course, if at all.

“Between December 31st and January 1st there is no value lost for the kingdom,” Al-Falih said in an interview in London. “So, I don’t see this artificial deadline that you refer to as being significant.”"



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Saudi graft crackdown proceeds to go to finance ministry- sovereign wealth fund | ZAWYA MENA Edition

Saudi graft crackdown proceeds to go to finance ministry- sovereign wealth fund | ZAWYA MENA Edition:

"The managing director of Saudi sovereign wealth fund Public Investment Fund (PIF) Yasir al-Rumayyan said on Thursday the money collected from the Gulf country's corruption probe will go to ministry of finance. Speaking at a conference in London, al-Rumayyan added, "For us, we are not involved.""



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Creditors look to sell Saudi Arabia's Al-Gosaibi debt on rising price- sources | ZAWYA MENA Edition

Creditors look to sell Saudi Arabia's Al-Gosaibi debt on rising price- sources | ZAWYA MENA Edition:

"Bahrain-based Gulf International Bank (GIB) has sold its 513.6 million riyals ($137 million) claim against Ahmad Hamad Al-Gosaibi and Brothers (AHAB), which has been locked in a near decade-long dispute with creditors, sources told Reuters. And now Standard Chartered, Dubai-based Emirates NBDand Bahrain's Arab Banking Corporation ABCB.BH are also seeking to sell AHAB debt totalling around 2.24 billion riyals, the financial sector sources said. AHAB and Saad Group both defaulted in Saudi Arabia's biggest financial meltdown in 2009, with international and regional banks and other creditors owed about $22 billion."



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Forbes keeps Saudis off billionaires list after corruption purge | ZAWYA MENA Edition

Forbes keeps Saudis off billionaires list after corruption purge | ZAWYA MENA Edition:

"Forbes magazine said on Thursday it was excluding all Saudi Arabian tycoons from its annual list of the world's richest people after dozens of top businessmen from the oil-rich kingdom were detained in a crackdown on corruption last year.

Most detainees were released after reaching settlements with the authorities, who say they arranged to seize more than $100 billion in assets through such deals. But the government has provided few details about who was netted in the sweep, what they were accused of and how much they gave up.

Forbes said earlier in the week that it was "impossible to know definitively who gave how much to whom when"."



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MIDEAST STOCKS-Banks and foreign flows boost Saudi market, Doha Bank weighs on Qatar

MIDEAST STOCKS-Banks and foreign flows boost Saudi market, Doha Bank weighs on Qatar:

"Saudi Arabia’s bourse was boosted on Thursday by financial sector gains and foreign cash inflows from other regional markets in anticipation of a possible upgrade of the Saudi market emerging market status by index compilers FTSE and MSCI.

Trading was mixed across the rest of the region. Egypt rose 0.5 percent on gains in the consumer sector while Dubai closed the week with a 0.8 percent loss.

In Qatar, the index shed 0.8 percent, dragged down by Doha Bank which plunged 10 percent on Thursday as the stock went ex-dividend."



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Saudi Aramco CEO Nasser says IPO work to be completed in H2 | ZAWYA MENA Edition

Saudi Aramco CEO Nasser says IPO work to be completed in H2 | ZAWYA MENA Edition:

"Saudi Aramco Chief Executive Officer Amin Nasser said on Thursday that all work required from the oil giant for its initial public offering (IPO), which could be the biggest in history, will be completed in the second half of 2018.

Speaking at a conference in London, Nasser added that the decision on the listing venue "and the rest is a job for the shareholder".

Saudi Crown Prince Mohammed bin Salman on Wednesday embarked on a trip to Britain and the United States, which could shape the decision on where to list the company."



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London’s last chance to win $2 trillion Aramco prize - The National

London’s last chance to win $2 trillion Aramco prize - The National:

"London is running out of time to win a share of the greatest prize in oil. Saudi Arabia must decide soon where to list its crown jewel state oil company Aramco, if it’s to meet the schedule for an initial public offering (IPO) in 2018. The London Stock Exchange (LSE) is a front-runner to play host to the world’s largest single producer of crude but faces stiff competition from New York and Hong Kong. The pressure will be on the government of Prime Minister Theresa May to woo Saudi Arabia's Crown Prince Mohammed bin Salman during his current visit to the UK. Capturing the listing, which could value Saudi Aramco at $2 trillion, would bolster London’s importance as a global financial centre at a time when the Brexit decision to leave the European Union has seen its status challenged."



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Doha Bank gets nod to raise $2bn debt under EMTN plan

Doha Bank gets nod to raise $2bn debt under EMTN plan:

"Doha Bank shareholders yesterday approved the board’s proposal to issue bonds up to $2bn under Euro Medium Term Note (EMTN) programme as part of efforts to source cost effective long-term funds. The lender also received approval for reducing the minimum amount per issuance of commercial papers to $1mn compared to $50mn in order to attract more retail investors. “Since (customers) deposits are the only funding source available in the country, which are generally short term, the international market presents itself as the best alternative,” Doha Bank chairman Sheikh Fahad bin Mohamed bin Jabor al-Thani told shareholders at the annual general assembly meeting that also approved the 2017 results and 30% cash dividend."



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How China Is About to Shake Up the Oil Futures Market - Bloomberg

How China Is About to Shake Up the Oil Futures Market - Bloomberg:

"China, the world’s biggest oil buyer, is opening a domestic market to trade futures contracts. It’s been planning one for years, only to encounter delays. The Shanghai International Energy Exchange, a unit of Shanghai Futures Exchange, will be known by the acronym INE and will allow Chinese buyers to lock in oil prices and pay in local currency. Also, foreign traders will be allowed to invest -- a first for China’s commodities markets -- because the exchange is registered in Shanghai’s free trade zone. There are implications for the U.S. dollar’s well-established role as the global currency of the oil market.

1. When will trading begin?
From March 26. Daytime trading hours will be from 9 a.m. to 11:30 a.m. and 1:30 p.m. to 3 p.m. local time and at night from 9 p.m. through 2:30 a.m. The push for oil futures gained impetus in 2017 when China surpassed the U.S. as the world’s biggest crude importer. The Asian nation’s purchases reached a record high last month. Seven grades will be deliverable, including Dubai crude, Oman crude, Basrah light oil and China’s Shengli oil. The contracts will have 36 delivery months with the first 12 months as rolling contracts.

"



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Bonds Are Helping These Gulf States Delay Reforms - Bloomberg

Bonds Are Helping These Gulf States Delay Reforms - Bloomberg:

"Access to a debt market teeming with yield-hungry investors is helping some cash-strapped nations in the Gulf Cooperation Council kick reforms down the road. Taking advantage of attractive interest rates, Oman raised $6.5 billion in January, its biggest sale on record, to help bridge deficits. And Bahrain, the smallest of the GCC’s six nations, tapped the international bond markets for $3.6 billion in 2017. It may issue this year to help meet funding needs. Junk-rated Oman and Bahrain have the weakest finances in the GCC and face making politically unpopular decisions such as freezing public sector employment and cut spending significantly. They have been slow to implement reforms compared with their richer neighbors such as Saudi Arabia and Abu Dhabi, which have slashed expenditure, rolled back some subsidies and introduced value added tax."



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Emirate of Sharjah sells $1bln sukuk -official | ZAWYA MENA Edition

Emirate of Sharjah sells $1bln sukuk -official | ZAWYA MENA Edition:

"The government of Sharjah, the third-largest constituent of the United Arab Emirates, has raised $1 billion through a 10-year sukuk, the emirate’s biggest transaction in debt capital markets, a government official said on Thursday. The Islamic bond issue, the first under Sharjah’s newly established sukuk programme, was launched with initial price guidance of 150 basis points over the 10-year mid-swap rate and subsequently tightened to 135 bps. The deal priced on Wednesday. With such pricing “we avoided paying any new issuance premium despite the continuing fluctuations we have been seeing in global financial markets”, Tom Koczwara, debt-management adviser to the government, said in an emailed statement."



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Is Aramco share sale distorting OPEC policy? Kemp | ZAWYA MENA Edition

Is Aramco share sale distorting OPEC policy? Kemp | ZAWYA MENA Edition:

"By restraining production, OPEC and its allies have succeeded in eliminating excess oil stocks and accelerating the recovery in prices, but they are paying an increasingly high price in terms of market share. U.S. producers will capture all the growth in global oil consumption this year, according to forecasts from the U.S. Energy Information Administration ("Short-Term Energy Outlook", EIA, March 2018). The agency predicts total crude and liquids production will rise by 2.0 million barrels per day (bpd) in 2018. "



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MIDEAST STOCKS-Saudi stocks lead gains among Gulf markets in mixed trading | ZAWYA MENA Edition

MIDEAST STOCKS-Saudi stocks lead gains among Gulf markets in mixed trading | ZAWYA MENA Edition:

"Gulf stock markets opened mixed on Thursday, with Saudi stocks leading the gains, as concerns about a global trade war retreated.

Saudi stocks traded up 0.1 percent, with banks and insurers the main upward drivers.

Crown Prince Mohammed bin Salman has directed the Saudi government to resolve a dispute with banks facing higher Islamic tax liabilities, Reuters reported on Wednesday, citing banking sources."



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