Bahrain begins marketing at low 6% yield for 30-year US dollar bond | Reuters:
"The Kingdom of Bahrain has opened books on a benchmark-sized 30-year bond at a yield of low 6%.
The deal is expected to price on Wednesday with Bahrain finishing its roadshow later today.
Citigroup, Gulf International Bank, Mitsubishi UFJ and Standard Chartered are the lead managers."
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Tuesday 9 September 2014
Oil Giant Rosneft Struggles as Western Sanctions Take Toll | News | The Moscow Times
Oil Giant Rosneft Struggles as Western Sanctions Take Toll | News | The Moscow Times:
"The Kremlin's prized oil firm Rosneft is cutting staff and production and selling stakes in Siberian fields in the strongest evidence to date that Western sanctions are hurting what was the world's fastest growing oil firm in recent years.
The sanctions imposed on Russia by the United States and Europe in response to its military action in Ukraine have cut Rosneft's access to Western financing and technology, complicating the servicing of its $55 billion debt and closing the way to cutting-edge industrial science it needs to keep developing its energy resources.
Few doubt that Rosneft will be able to withstand the pressure medium-term —its earnings amount to $30 billion a year and billions more are still available via Chinese credit lines and Russian state coffers in case of emergency."
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"The Kremlin's prized oil firm Rosneft is cutting staff and production and selling stakes in Siberian fields in the strongest evidence to date that Western sanctions are hurting what was the world's fastest growing oil firm in recent years.
The sanctions imposed on Russia by the United States and Europe in response to its military action in Ukraine have cut Rosneft's access to Western financing and technology, complicating the servicing of its $55 billion debt and closing the way to cutting-edge industrial science it needs to keep developing its energy resources.
Few doubt that Rosneft will be able to withstand the pressure medium-term —its earnings amount to $30 billion a year and billions more are still available via Chinese credit lines and Russian state coffers in case of emergency."
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GCC countries still dependent on oil takings despite diversification | Economy | Saudi Gazette
GCC countries still dependent on oil takings despite diversification | Economy | Saudi Gazette:
"
The annual budget spending in GCC countries still continues to be driven almost entirely by income from the export of hydrocarbons although the contribution of non-hydrocarbon GDP to the overall GDP has significantly increased over the past two decades across the region, Alkhabeer Capital, a leading asset management and investment firm based in Saudi Arabia, said in a report on GCC budget analysis and government spending behaviors.
Since the global financial crisis, the GCC economies have consistently outperformed their global peers, growing by about 24 percent during the last 5 year period until 2013, supported by robust oil revenues - which the GCC countries are highly dependent on.
Hydrocarbon revenues in Qatar and UAE account for close to 60 percent of the total revenues of the countries, however in Saudi Arabia and Kuwait, the figure is close to 90 percent and 93 percent, respectively. This is in contrast to other resource-rich economies such as Norway, where revenues from oil account for just about 30 percent of government revenues."
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"
Since the global financial crisis, the GCC economies have consistently outperformed their global peers, growing by about 24 percent during the last 5 year period until 2013, supported by robust oil revenues - which the GCC countries are highly dependent on.
Hydrocarbon revenues in Qatar and UAE account for close to 60 percent of the total revenues of the countries, however in Saudi Arabia and Kuwait, the figure is close to 90 percent and 93 percent, respectively. This is in contrast to other resource-rich economies such as Norway, where revenues from oil account for just about 30 percent of government revenues."
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UAE brokerages tie up with finance companies to capture market share | The National
UAE brokerages tie up with finance companies to capture market share | The National:
"UAE brokerages are turning to finance companies to reduce risk and capture market share in a market dominated by banks.
The top two brokers by traded value have entered into agreements with financial institutions to offer clients leverage at a time when more than half of the companies in operation are licensed by the regulator to offer margin facilities.
Mena Corp has tied up with Aafaq Islamic finance company and Al Ramz has tied up with Ajman Bank."
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"UAE brokerages are turning to finance companies to reduce risk and capture market share in a market dominated by banks.
The top two brokers by traded value have entered into agreements with financial institutions to offer clients leverage at a time when more than half of the companies in operation are licensed by the regulator to offer margin facilities.
Mena Corp has tied up with Aafaq Islamic finance company and Al Ramz has tied up with Ajman Bank."
'via Blog this'
Russia won’t get far using the China card | GulfNews.com
Russia won’t get far using the China card | GulfNews.com:
"Many critics argue that the sanctions imposed on Russia for its actions in Ukraine are ineffective, because they are too limited in scale and scope. Moreover, sanctions are seen as allowing President Vladimir Putin to blame the West for Russia’s internal problems. Indeed, some of Putin’s supporters within Russia welcome the sanctions as a means to compel Russian autarky — and thus strategic independence from the West.
These arguments are wrong. Though the sanctions are not backed by China, they are already having a powerful effect, and the expectation that they will be tightened further is a huge concern for investors and the Russian government.
Full autarky, meanwhile, would imply a dramatic decline in Russian living standards — the foundation of Putin’s domestic support."
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"Many critics argue that the sanctions imposed on Russia for its actions in Ukraine are ineffective, because they are too limited in scale and scope. Moreover, sanctions are seen as allowing President Vladimir Putin to blame the West for Russia’s internal problems. Indeed, some of Putin’s supporters within Russia welcome the sanctions as a means to compel Russian autarky — and thus strategic independence from the West.
These arguments are wrong. Though the sanctions are not backed by China, they are already having a powerful effect, and the expectation that they will be tightened further is a huge concern for investors and the Russian government.
Full autarky, meanwhile, would imply a dramatic decline in Russian living standards — the foundation of Putin’s domestic support."
'via Blog this'
Ethical Sukuk Boosted by Vaccine-Funding Debut: Islamic Finance - Bloomberg
Ethical Sukuk Boosted by Vaccine-Funding Debut: Islamic Finance - Bloomberg:
"A group that’s raised $4.5 billion for child vaccinations since its inception in 2006 plans to tap the Islamic debt market for the first time, kickstarting sales of ethical-based sukuk.
The International Financial Facility for Immunization seeks to sell as much as $500 million of dollar-denominated Shariah-compliant notes, Michael Bennett, head of derivatives and structured finance at the World Bank’s treasury department, the intermediary for the sale, said in a Sept. 3 interview in Kuala Lumpur. IFFIM, a non-profit organization based in London, will sell the three-year vaccine bonds backed by commodities as early as this month, he said.
The World Bank pioneered issuing green and socially responsible bonds in 2008 and has sold $6.4 billion of the debt on its own behalf in the conventional market, according to its website. The IFFIM’s initiative coincides with the introduction of Malaysian regulations last month to promote offerings of such securities along Shariah guidelines to boost product options in the $2 trillion global Islamic finance industry."
'via Blog this'
"A group that’s raised $4.5 billion for child vaccinations since its inception in 2006 plans to tap the Islamic debt market for the first time, kickstarting sales of ethical-based sukuk.
The International Financial Facility for Immunization seeks to sell as much as $500 million of dollar-denominated Shariah-compliant notes, Michael Bennett, head of derivatives and structured finance at the World Bank’s treasury department, the intermediary for the sale, said in a Sept. 3 interview in Kuala Lumpur. IFFIM, a non-profit organization based in London, will sell the three-year vaccine bonds backed by commodities as early as this month, he said.
The World Bank pioneered issuing green and socially responsible bonds in 2008 and has sold $6.4 billion of the debt on its own behalf in the conventional market, according to its website. The IFFIM’s initiative coincides with the introduction of Malaysian regulations last month to promote offerings of such securities along Shariah guidelines to boost product options in the $2 trillion global Islamic finance industry."
'via Blog this'
Dubai’s Second Chances Reward Ex-Prisoner Turned Builder - Bloomberg
Dubai’s Second Chances Reward Ex-Prisoner Turned Builder - Bloomberg:
"Dubai’s boom-and-bust real estate market can land you at the wheel of a Rolls-Royce or behind bars. Kabir Mulchandani should know: he’s experienced both.
Five years after spending 140 days in jail facing charges of fraud and embezzlement for which he ultimately was cleared, the chairman of developer SKAI Holdings stands at a building site watching cranes start work on one of the company’s three projects. They will have a combined value of about 6 billion dirhams ($1.6 billion) when completed.
“I guess the beauty of life is its uncertainty,” said Mulchandani, 42. “I went from making corporate deals, hanging out on a yacht and living in Emirates Hills to sharing a jail cell with eight others.”
"
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"Dubai’s boom-and-bust real estate market can land you at the wheel of a Rolls-Royce or behind bars. Kabir Mulchandani should know: he’s experienced both.
Five years after spending 140 days in jail facing charges of fraud and embezzlement for which he ultimately was cleared, the chairman of developer SKAI Holdings stands at a building site watching cranes start work on one of the company’s three projects. They will have a combined value of about 6 billion dirhams ($1.6 billion) when completed.
“I guess the beauty of life is its uncertainty,” said Mulchandani, 42. “I went from making corporate deals, hanging out on a yacht and living in Emirates Hills to sharing a jail cell with eight others.”
"
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