Saudi Bond Coup Seen Strengthening Banks Seeking Aramco IPO Role - Bloomberg:
"Banks that helped Saudi Arabia raise a record $17.5 billion last week will next turn to an even bigger prize: landing a role on the potential $100 billion initial public offering of Saudi Arabian Oil Co.
HSBC Holdings Plc, Citigroup Inc. and JPMorgan Chase & Co. were joint global coordinators on last week’s bond sale, which attracted $67 billion worth of orders from mainly U.S. and European investors. Analysts say the bond’s success puts those banks and other lenders that worked on the deal in a prime position to land significant roles on the IPO as soon as next year.
The bond sale is “definitely a big plus for the banks that were involved," said Murad Ansari, a Riyadh-based analyst at investment bank EFG-Hermes. “Given the size of Aramco’s IPO, I would expect quite a number of international banks to be involved in the consortium.""
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Tuesday, 25 October 2016
OPEC is back in business, and the market is skeptical: Kemp | Reuters
OPEC is back in business, and the market is skeptical: Kemp | Reuters:
"OPEC's output accord in Algiers last month was initially greeted with enthusiasm by oil market bulls but much of that euphoria is now dissipating as traders question whether it will make an actual difference.
The agreement, coming after many observers had written off the possibility of a deal, initially pushed crude prices sharply higher ("Saudi Arabia squeezes hedge funds with bearish bets on oil", Reuters, Oct. 10).
Flat prices and timespreads firmed as traders concluded the accord would accelerate the rebalancing of supply and demand ("Healthier oil market conditions at hand", Energy Intelligence, Oct. 19)."
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"OPEC's output accord in Algiers last month was initially greeted with enthusiasm by oil market bulls but much of that euphoria is now dissipating as traders question whether it will make an actual difference.
The agreement, coming after many observers had written off the possibility of a deal, initially pushed crude prices sharply higher ("Saudi Arabia squeezes hedge funds with bearish bets on oil", Reuters, Oct. 10).
Flat prices and timespreads firmed as traders concluded the accord would accelerate the rebalancing of supply and demand ("Healthier oil market conditions at hand", Energy Intelligence, Oct. 19)."
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UAE's Pacific Controls in talks to sell data centre to Etisalat -sources | Reuters
UAE's Pacific Controls in talks to sell data centre to Etisalat -sources | Reuters:
"Dubai technology company Pacific Controls, which is seeking one of the biggest debt restructuring deals in the Gulf since the economic slowdown, is in talks to sell its data centre in the emirate to telecoms company Etisalat , four sources said.
Pacific Controls, which needs to raise cash in its effort to restructure 1.4 billion dirhams ($381 million) in debt, is also facing legal action from Emirates NBD, one of its creditors, concerning non-payment of some of its debt, said two of the sources familiar with the situation.
The legal action is complicating efforts to seal a conciliatory agreement with creditors in the absence of a modern bankruptcy law, the sources said."
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"Dubai technology company Pacific Controls, which is seeking one of the biggest debt restructuring deals in the Gulf since the economic slowdown, is in talks to sell its data centre in the emirate to telecoms company Etisalat , four sources said.
Pacific Controls, which needs to raise cash in its effort to restructure 1.4 billion dirhams ($381 million) in debt, is also facing legal action from Emirates NBD, one of its creditors, concerning non-payment of some of its debt, said two of the sources familiar with the situation.
The legal action is complicating efforts to seal a conciliatory agreement with creditors in the absence of a modern bankruptcy law, the sources said."
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UPDATE 1-Saudi central bank asks banks to reschedule property loans as austerity bites | Reuters
UPDATE 1-Saudi central bank asks banks to reschedule property loans as austerity bites | Reuters:
"Saudi Arabia's central bank said on Tuesday it had asked local banks to reschedule the property loans of citizens whose incomes had been reduced by government austerity measures.
Last month, the government said it would cut allowances for employees in the public sector, where about two-thirds of Saudis work, to save money as low oil prices strain state finances.
Economists estimated the cuts might reduce the income of many people by about 20 percent, making it harder for them to service their property and consumer loans."
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"Saudi Arabia's central bank said on Tuesday it had asked local banks to reschedule the property loans of citizens whose incomes had been reduced by government austerity measures.
Last month, the government said it would cut allowances for employees in the public sector, where about two-thirds of Saudis work, to save money as low oil prices strain state finances.
Economists estimated the cuts might reduce the income of many people by about 20 percent, making it harder for them to service their property and consumer loans."
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MIDEAST STOCKS-Banking shares buoy Saudi, EFG Hermes gains on U.S. expansion | Reuters
MIDEAST STOCKS-Banking shares buoy Saudi, EFG Hermes gains on U.S. expansion | Reuters:
"Banking shares boosted Saudi Arabia's stock market on Tuesday while the majority of other Gulf markets sagged on uninspiring quarterly results.
Egypt recovered sightly, but investors remain anxious over dollar shortage woes.
The Saudi stock market index gained 1.5 percent, its fifth consecutive session of gains as all 12 of the listed lenders advanced. Bank Aljazira was the top performer amongst its peers, jumping 6.5 percent. National Commercial Bank, the second largest by market value, gained 4.6 percent."
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"Banking shares boosted Saudi Arabia's stock market on Tuesday while the majority of other Gulf markets sagged on uninspiring quarterly results.
Egypt recovered sightly, but investors remain anxious over dollar shortage woes.
The Saudi stock market index gained 1.5 percent, its fifth consecutive session of gains as all 12 of the listed lenders advanced. Bank Aljazira was the top performer amongst its peers, jumping 6.5 percent. National Commercial Bank, the second largest by market value, gained 4.6 percent."
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Sheikh Khalifa decrees bankruptcy law | The National
Sheikh Khalifa decrees bankruptcy law | The National:
"Sheikh Khalifa, the President, on Monday issued the long-awaited new federal bankruptcy law by decree, according to the state news agency Wam.
The law, which contains elements of bankruptcy protection laws from jurisdictions including France, Germany and the Netherlands, provides, for the first time, a comprehensive legal framework to help distressed companies avoid bankruptcy and liquidation.
Under the terms of the federal constitution, the new law will come into effect three months from its publication in the country’s official legal gazette."
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"Sheikh Khalifa, the President, on Monday issued the long-awaited new federal bankruptcy law by decree, according to the state news agency Wam.
The law, which contains elements of bankruptcy protection laws from jurisdictions including France, Germany and the Netherlands, provides, for the first time, a comprehensive legal framework to help distressed companies avoid bankruptcy and liquidation.
Under the terms of the federal constitution, the new law will come into effect three months from its publication in the country’s official legal gazette."
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Saudi Bond Sale Spurs Gulf Borrowing to Record With More to Come - Bloomberg
Saudi Bond Sale Spurs Gulf Borrowing to Record With More to Come - Bloomberg:
"Gulf borrowers have raised a record amount in the public debt markets in 2016, and they’re not finished yet.
Saudi Arabia’s $17.5 billion international bond sale, the largest ever from an emerging market, boosted the amount raised through loans and bonds in the six-nation Gulf Cooperation Council to $151 billion, according to data compiled by Bloomberg, eclipsing the full-year record of $142 billion set in 2007. That’s before Equate Petrochemical Co.’s planned sale of five- and 10-year bonds this week, an offering that may raise as much as $3 billion, according to two people familiar with the deal."
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"Gulf borrowers have raised a record amount in the public debt markets in 2016, and they’re not finished yet.
Saudi Arabia’s $17.5 billion international bond sale, the largest ever from an emerging market, boosted the amount raised through loans and bonds in the six-nation Gulf Cooperation Council to $151 billion, according to data compiled by Bloomberg, eclipsing the full-year record of $142 billion set in 2007. That’s before Equate Petrochemical Co.’s planned sale of five- and 10-year bonds this week, an offering that may raise as much as $3 billion, according to two people familiar with the deal."
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Gulf Banks Feel the Pain as Investors Wonder What Will Come Next - Bloomberg
Gulf Banks Feel the Pain as Investors Wonder What Will Come Next - Bloomberg:
"Banks from Saudi Arabia to Dubai are feeling the pain of the Middle East’s slowdown.
Many of the region’s largest banks missed analysts’ earnings estimates in the third quarter as lenders provisioned for higher bad loans and funding costs increased. National Commercial Bank, Saudi Arabia’s largest lender, said profit fell 1.5 percent to 1.96 billion riyals after impairment charges increased. Emirates NBD PJSC, the United Arab Emirates’ biggest bank, posted a profit of 1.66 billion dirhams, missing analyst estimates for earnings of 1.83 billion, after provisions increased at its Islamic unit.
The slump in crude prices has sparked a wave of budget cuts across the oil-rich Gulf region, prompting economic growth to slow and liquidity problems for banks accustomed to relying on countries’ excess energy receipts for funding. Government delays in paying contractors in Saudi Arabia and defaults among small and medium-sized enterprises in the U.A.E. are contributing to rising provisions, while funding costs in Saudi Arabia are at a 7-year high."
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"Banks from Saudi Arabia to Dubai are feeling the pain of the Middle East’s slowdown.
Many of the region’s largest banks missed analysts’ earnings estimates in the third quarter as lenders provisioned for higher bad loans and funding costs increased. National Commercial Bank, Saudi Arabia’s largest lender, said profit fell 1.5 percent to 1.96 billion riyals after impairment charges increased. Emirates NBD PJSC, the United Arab Emirates’ biggest bank, posted a profit of 1.66 billion dirhams, missing analyst estimates for earnings of 1.83 billion, after provisions increased at its Islamic unit.
The slump in crude prices has sparked a wave of budget cuts across the oil-rich Gulf region, prompting economic growth to slow and liquidity problems for banks accustomed to relying on countries’ excess energy receipts for funding. Government delays in paying contractors in Saudi Arabia and defaults among small and medium-sized enterprises in the U.A.E. are contributing to rising provisions, while funding costs in Saudi Arabia are at a 7-year high."
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MIDEAST STOCKS-Saudi notches higher, rest of Gulf weighed down by bank shares | Reuters
MIDEAST STOCKS-Saudi notches higher, rest of Gulf weighed down by bank shares | Reuters:
"Advances in several shares focused on domestic demand supported Saudi Arabia's stock market index in early trade on Tuesday, while other Gulf markets dipped, weighed down by the banking sector.
The Saudi stock market index notched up 0.4 percent after half an hour of trade, heading for its fifth consecutive session of gains.
Electronics and bookstore chain Jarir Marketing added 2.2 percent, building on Monday's 3.2-percent gain after Chairman Muhammad Alagil told Reuters that the retail sector's slump might be close to ending.
"
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"Advances in several shares focused on domestic demand supported Saudi Arabia's stock market index in early trade on Tuesday, while other Gulf markets dipped, weighed down by the banking sector.
The Saudi stock market index notched up 0.4 percent after half an hour of trade, heading for its fifth consecutive session of gains.
Electronics and bookstore chain Jarir Marketing added 2.2 percent, building on Monday's 3.2-percent gain after Chairman Muhammad Alagil told Reuters that the retail sector's slump might be close to ending.
"
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