Explainer: What now for Abraaj Group? - The National:
One week after the Abraaj Group founder Arif Naqvi reached an out-of-court settlement with a creditor in a criminal bounced cheque case – reducing the risk of complicating the company’s ongoing restructure – we provide an update on the latest developments.
At what stage is the provisional liquidation?
A judge in the Cayman Islands approved a court-supervised restructure of the private equity firm on June 19, so the process has been under way for more than two months.
Ever since four investors in Abraaj’s $1 billion Growth Markets Health Fund – including the Bill & Melinda Gates Foundation, the World Bank’s International Finance Corporation, the UK’s CDC Group and Proparco Group of France – alleged mismanagement of funds in February and hired Ankura Consulting to find out where their money had gone, Abraaj’s reputation has unravelled.
Monday, 3 September 2018
India allows state refiners to use Iran tankers
India allows state refiners to use Iran tankers:
India is allowing state refiners to import Iranian oil with Tehran arranging tankers and insurance after firms including the country’s top shipper Shipping Corp of India (SCI) halted voyages to Iran due to US sanctions, sources said.
New Delhi’s attempt to keep Iranian oil flowing mirrors a step by China, where buyers are shifting nearly all their Iranian oil imports to vessels owned by National Iranian Tanker Co (NITC).
The moves by the two top buyers of Iranian crude indicate that the Islamic Republic may not be fully cut off from global oil markets from November, when US sanctions against Tehran’s petroleum sector are due to start.
India is allowing state refiners to import Iranian oil with Tehran arranging tankers and insurance after firms including the country’s top shipper Shipping Corp of India (SCI) halted voyages to Iran due to US sanctions, sources said.
New Delhi’s attempt to keep Iranian oil flowing mirrors a step by China, where buyers are shifting nearly all their Iranian oil imports to vessels owned by National Iranian Tanker Co (NITC).
The moves by the two top buyers of Iranian crude indicate that the Islamic Republic may not be fully cut off from global oil markets from November, when US sanctions against Tehran’s petroleum sector are due to start.
Abu Dhabi's Merger Drive May Create Another Mega Bank: Timeline - Bloomberg
Abu Dhabi's Merger Drive May Create Another Mega Bank: Timeline - Bloomberg:
Three of Abu Dhabi’s banks are in talks to combine -- a move that would create the fifth-largest lender in the Gulf Cooperation Council with assets of about $110 billion.
Discussions to merge Abu Dhabi Commercial Bank PJSC, Union National Bank PJSC and privately-held Al Hilal Bank are underway but no decision has been made, according to people with knowledge of the matter.
The talks fit into Abu Dhabi’s strategy to consolidate its institutions as the oil-rich emirate seeks to cope with lower crude prices. Following are the key mergers recently undertaken in the largest sheikhdom in the United Arab Emirates.
Three of Abu Dhabi’s banks are in talks to combine -- a move that would create the fifth-largest lender in the Gulf Cooperation Council with assets of about $110 billion.
Discussions to merge Abu Dhabi Commercial Bank PJSC, Union National Bank PJSC and privately-held Al Hilal Bank are underway but no decision has been made, according to people with knowledge of the matter.
The talks fit into Abu Dhabi’s strategy to consolidate its institutions as the oil-rich emirate seeks to cope with lower crude prices. Following are the key mergers recently undertaken in the largest sheikhdom in the United Arab Emirates.
Abu Dhabi Confronts Glut of Banks With Three-Way Merger Plan - Bloomberg
Abu Dhabi Confronts Glut of Banks With Three-Way Merger Plan - Bloomberg:
Abu Dhabi is engineering a second bank merger in its latest attempt to stay competitive in the era of lower oil prices.
Three of its state-linked banks are in talks to combine into an institution with $110 billion of assets, according to Abu Dhabi Commercial Bank PJSC, one of the lenders. The negotiations follow a tie-up between Abu Dhabi’s two biggest banks last year and the merger of sovereign wealth funds in March.
"This is entirely consistent with the moves over the last few years towards tighter financial control and elimination of duplicated costs in Abu Dhabi Inc.," said Hasnain Malik, the global head of equity research and strategy at Exotix Capital in Dubai.
Abu Dhabi is engineering a second bank merger in its latest attempt to stay competitive in the era of lower oil prices.
Three of its state-linked banks are in talks to combine into an institution with $110 billion of assets, according to Abu Dhabi Commercial Bank PJSC, one of the lenders. The negotiations follow a tie-up between Abu Dhabi’s two biggest banks last year and the merger of sovereign wealth funds in March.
"This is entirely consistent with the moves over the last few years towards tighter financial control and elimination of duplicated costs in Abu Dhabi Inc.," said Hasnain Malik, the global head of equity research and strategy at Exotix Capital in Dubai.
Brent Crude Nears Two-Month High as Iran Ships Least Since 2016 - Bloomberg
Brent Crude Nears Two-Month High as Iran Ships Least Since 2016 - Bloomberg:
Oil rose to the highest in almost two months in London as Iranian crude exports tumble, with Asian buyers taking fewer cargoes from the Middle Eastern nation weeks before U.S. sanctions take full effect.
Brent futures gained 0.7 percent. Iran shipped just under 2.1 million barrels a day of crude and condensates in August, the least since March 2016, ship-tracking data compiled by Bloomberg show. Meanwhile, traders are scrutinizing Saudi Arabia and Russia’s output for signs they will fill potential gaps in supply. Russia kept pumping oil near post-Soviet records last month, while OPEC output rose to its highest this year.
“Underpinning the prevailing bullish sentiment is the increasingly supportive supply outlook,” PVM Oil Associates analyst Stephen Brennock wrote in a report. “Much of this owed to the downswing in Iranian oil shipments.”
Oil rose to the highest in almost two months in London as Iranian crude exports tumble, with Asian buyers taking fewer cargoes from the Middle Eastern nation weeks before U.S. sanctions take full effect.
Brent futures gained 0.7 percent. Iran shipped just under 2.1 million barrels a day of crude and condensates in August, the least since March 2016, ship-tracking data compiled by Bloomberg show. Meanwhile, traders are scrutinizing Saudi Arabia and Russia’s output for signs they will fill potential gaps in supply. Russia kept pumping oil near post-Soviet records last month, while OPEC output rose to its highest this year.
“Underpinning the prevailing bullish sentiment is the increasingly supportive supply outlook,” PVM Oil Associates analyst Stephen Brennock wrote in a report. “Much of this owed to the downswing in Iranian oil shipments.”
Turkey to sign deal with Qatar to reduce energy supply costs
Turkey to sign deal with Qatar to reduce energy supply costs:
Turkey will sign an economic and trade partnership agreement with Qatar, in order to secure cheaper supply of refined oil products and natural gas, Turkish trade ministry said in a statement on Monday.
The deal, which the ministry said will target a comprehensive liberalization of goods and services trading between the two countries, will also include telecommunications sector and financial services.
Turkey will sign an economic and trade partnership agreement with Qatar, in order to secure cheaper supply of refined oil products and natural gas, Turkish trade ministry said in a statement on Monday.
The deal, which the ministry said will target a comprehensive liberalization of goods and services trading between the two countries, will also include telecommunications sector and financial services.
Abu Dhabi Commercial Bank says in merger talks with two rivals | Reuters
Abu Dhabi Commercial Bank says in merger talks with two rivals | Reuters:
Abu Dhabi Commercial Bank (ADCB) ADCB.AD said it is in early merger talks with Union National Bank UNB.AD and Al Hilal Bank, which could potentially form a lender with $113 billion in assets.
Abu Dhabi, the oil-rich capital of the United Arab Emirates, has been revamping its economy and pressing ahead with consolidating state-owned entities after two years of low oil prices weighed heavily on its revenues. Two of Abu Dhabi’s top banks were merged last year to create First Abu Dhabi Bank FAB.AD with total assets of $175 billion, while two of its big sovereign wealth funds were also combined.
ADCB, majority owned by the Abu Dhabi government, said in a disclosure to the Abu Dhabi Securities Market that it is in talks with UNB and separately with unlisted Al Hilal Bank. If it goes ahead, a merger of the three could create an entity with $113 billion in assets, according to Thomson Reuters data.
Abu Dhabi Commercial Bank (ADCB) ADCB.AD said it is in early merger talks with Union National Bank UNB.AD and Al Hilal Bank, which could potentially form a lender with $113 billion in assets.
Abu Dhabi, the oil-rich capital of the United Arab Emirates, has been revamping its economy and pressing ahead with consolidating state-owned entities after two years of low oil prices weighed heavily on its revenues. Two of Abu Dhabi’s top banks were merged last year to create First Abu Dhabi Bank FAB.AD with total assets of $175 billion, while two of its big sovereign wealth funds were also combined.
ADCB, majority owned by the Abu Dhabi government, said in a disclosure to the Abu Dhabi Securities Market that it is in talks with UNB and separately with unlisted Al Hilal Bank. If it goes ahead, a merger of the three could create an entity with $113 billion in assets, according to Thomson Reuters data.
MIDEAST STOCKS-Region mostly weak but Saudi ends three-day losing streak | Reuters
MIDEAST STOCKS-Region mostly weak but Saudi ends three-day losing streak | Reuters:
Middle East stock markets mostly fell on Monday on concerns that trade disputes involving the United States could hurt the global economy, although Saudi Arabia rebounded slightly from a three-day losing streak.
The trade jitters prompted a 0.9 percent slide in MSCI’s emerging market index, which deterred buying of stocks in the Middle East.
“The global economic situation is worrying for the markets - wealth managers have been reducing exposure to equities over the past month. That’s why negative sentiment is spreading across the region,” said Mazen al-Sudairi, head of research at Al Rajhi Capital in Riyadh.
Middle East stock markets mostly fell on Monday on concerns that trade disputes involving the United States could hurt the global economy, although Saudi Arabia rebounded slightly from a three-day losing streak.
The trade jitters prompted a 0.9 percent slide in MSCI’s emerging market index, which deterred buying of stocks in the Middle East.
“The global economic situation is worrying for the markets - wealth managers have been reducing exposure to equities over the past month. That’s why negative sentiment is spreading across the region,” said Mazen al-Sudairi, head of research at Al Rajhi Capital in Riyadh.
Aramco Could Deploy 'Barbarians at the Gate' Playbook for Sabic - Bloomberg
Aramco Could Deploy 'Barbarians at the Gate' Playbook for Sabic - Bloomberg:
Saudi Arabia isn’t the first place you’d look for exotically structured M&A, but as oil giant Aramco pursues the kingdom’s biggest-ever deal it could use an option first pioneered by buccaneering Wall Streeters three decades ago: a giant leveraged buyout.
Saudi Aramco is planning to buy a strategic stake worth as much as $70 billion in petrochemical firm Sabic. The oil producer could finance the acquisition the traditional way: tapping bond investors and taking bank loans, according to people familiar with the matter. Trouble is, a big global bond issue would require Aramco to reveal detailed financial results for the first time.
Within the kingdom, there’s a big debate about whether to open Aramco to outside scrutiny. Crown Prince Mohammed bin Salman has spoken in the past about the benefits of openness and pushed for an initial public offering for the company -- a plan that’s been put on hold while the Sabic deal is done. Others in government and Aramco favor keeping things secret.
Saudi Arabia isn’t the first place you’d look for exotically structured M&A, but as oil giant Aramco pursues the kingdom’s biggest-ever deal it could use an option first pioneered by buccaneering Wall Streeters three decades ago: a giant leveraged buyout.
Saudi Aramco is planning to buy a strategic stake worth as much as $70 billion in petrochemical firm Sabic. The oil producer could finance the acquisition the traditional way: tapping bond investors and taking bank loans, according to people familiar with the matter. Trouble is, a big global bond issue would require Aramco to reveal detailed financial results for the first time.
Within the kingdom, there’s a big debate about whether to open Aramco to outside scrutiny. Crown Prince Mohammed bin Salman has spoken in the past about the benefits of openness and pushed for an initial public offering for the company -- a plan that’s been put on hold while the Sabic deal is done. Others in government and Aramco favor keeping things secret.
How Iran Could Counter U.S. Sanctions - Bloomberg
How Iran Could Counter U.S. Sanctions - Bloomberg:
Donald Trump is targeting Iran’s oil, but U.S. sanctions alone might not be enough to shut down the Islamic Republic’s economic lifeline.
Discounts, bartering and smuggling — even disabling the tracking systems on its fleet of tankers — are among the tactics Iran may lean on to keep almost 800,000 barrels a day of its exports flowing after U.S. restrictions resume in November, Ellen Milligan writes.
The sanctions will still hit hard, but sales abroad at those levels would cushion the impact for a ruling establishment rocked by a sharp depreciation in its currency and bubbling discontent over rising prices.
Donald Trump is targeting Iran’s oil, but U.S. sanctions alone might not be enough to shut down the Islamic Republic’s economic lifeline.
Discounts, bartering and smuggling — even disabling the tracking systems on its fleet of tankers — are among the tactics Iran may lean on to keep almost 800,000 barrels a day of its exports flowing after U.S. restrictions resume in November, Ellen Milligan writes.
The sanctions will still hit hard, but sales abroad at those levels would cushion the impact for a ruling establishment rocked by a sharp depreciation in its currency and bubbling discontent over rising prices.
Brent Gains Above $78 as Lower Iranian Crude Flows Curb Supply - Bloomberg
Brent Gains Above $78 as Lower Iranian Crude Flows Curb Supply - Bloomberg:
Oil in London traded near a two-month high as Iranian crude and condensate exports fell to their lowest level in more than two years, showcasing concerns over a potential supply shortfall once U.S. sanctions on the Middle East nation’s shipments start in November.
Brent futures gained as much as 0.7 percent. Iran shipped just under 2.1 million barrels a day of crude and condensates in August, the lowest since March 2016, ship-tracking data compiled by Bloomberg show. Still, Russia kept pumping oil near post-Soviet records last month, and Saudi Arabia boosted output to more than 10.42 million barrels a day.
Oil in London traded near a two-month high as Iranian crude and condensate exports fell to their lowest level in more than two years, showcasing concerns over a potential supply shortfall once U.S. sanctions on the Middle East nation’s shipments start in November.
Brent futures gained as much as 0.7 percent. Iran shipped just under 2.1 million barrels a day of crude and condensates in August, the lowest since March 2016, ship-tracking data compiled by Bloomberg show. Still, Russia kept pumping oil near post-Soviet records last month, and Saudi Arabia boosted output to more than 10.42 million barrels a day.
Fifteen companies in Kuwait eye merger to avoid bankruptcy | ZAWYA MENA Edition
Fifteen companies in Kuwait eye merger to avoid bankruptcy | ZAWYA MENA Edition:
Fifteen companies are reported to be considering a merger to avoid bankruptcy before the end of 2018 amid pressures mounted on companies by the banks facing difficulties, reports Al-Shahed daily.
The daily quoting a source said the companies in question are working with external entities and they have projects inside and outside the country, indicating the companies are enmeshed in accumulation of short-term loans granted by the banks to execute longterm projects and causing a series of problems.
Chief among the problems is inability of the companies to pay the loan even though some of them are involved in real estate, investment, and automobiles.
Fifteen companies are reported to be considering a merger to avoid bankruptcy before the end of 2018 amid pressures mounted on companies by the banks facing difficulties, reports Al-Shahed daily.
The daily quoting a source said the companies in question are working with external entities and they have projects inside and outside the country, indicating the companies are enmeshed in accumulation of short-term loans granted by the banks to execute longterm projects and causing a series of problems.
Chief among the problems is inability of the companies to pay the loan even though some of them are involved in real estate, investment, and automobiles.
Kuwait's Burgan Bank plans 150 mln dinar bonds | Reuters
Kuwait's Burgan Bank plans 150 mln dinar bonds | Reuters:
Kuwait’s Burgan Bank has won approval from the country’s central bank to issue up to 150 million dinars ($496 million) senior unsecured bonds, the bank said on Monday.
The bank, which reported in July a 43 percent rise in second-quarter profit from a year earlier, had a common equity tier 1 of 11 percent and a capital adequacy ratio of 16.6 percent.
Outside Kuwait, the bank has operations in Turkey, Algeria, Iraq and Tunisia.
Kuwait’s Burgan Bank has won approval from the country’s central bank to issue up to 150 million dinars ($496 million) senior unsecured bonds, the bank said on Monday.
The bank, which reported in July a 43 percent rise in second-quarter profit from a year earlier, had a common equity tier 1 of 11 percent and a capital adequacy ratio of 16.6 percent.
Outside Kuwait, the bank has operations in Turkey, Algeria, Iraq and Tunisia.
APICORP mandates banks before possible 5-year dollar bond sale | Reuters
APICORP mandates banks before possible 5-year dollar bond sale | Reuters:
Arab Petroleum Investments Corp (APICORP) has mandated banks to arrange a series of investor meetings in Britain and the United States ahead of a potential international bond issue, according to a document issued by one of the banks.
The meetings will start on Wednesday, and a fixed-rate, five-year benchmark U.S. dollar senior unsecured Rule 144A/Regulation S bond deal will follow, subject to market conditions. APICORP, a multilateral development bank rated Aa3 with a stable outlook by Moody’s, mandated Credit Agricole, HSBC, JP Morgan and Standard Chartered Bank as joint lead managers and bookrunners. Union National Bank is co-lead manager.
Arab Petroleum Investments Corp (APICORP) has mandated banks to arrange a series of investor meetings in Britain and the United States ahead of a potential international bond issue, according to a document issued by one of the banks.
The meetings will start on Wednesday, and a fixed-rate, five-year benchmark U.S. dollar senior unsecured Rule 144A/Regulation S bond deal will follow, subject to market conditions. APICORP, a multilateral development bank rated Aa3 with a stable outlook by Moody’s, mandated Credit Agricole, HSBC, JP Morgan and Standard Chartered Bank as joint lead managers and bookrunners. Union National Bank is co-lead manager.
Oman expects oil prices to stay between $70-$80 per barrel this year: WAF
Oman expects oil prices to stay between $70-$80 per barrel this year: WAF:
Oman’s Oil Minister Mohammed bin Hamad al-Rumhi said on Monday he expects oil prices to remain between $70 to $80 a barrel this year, Omani news website WAF reported on Twitter.
Saudi Arabia, Kuwait and the United Arab Emirates are the only three countries that have the capacity to increase oil production, he said at an oil conference in Oman.
OPEC and its allies pledged on June 22-23 to return to 100 percent compliance with their agreement to reduce their combined output by 1.8 million bpd. The pact was first implemented in January 2017.
Oman’s Oil Minister Mohammed bin Hamad al-Rumhi said on Monday he expects oil prices to remain between $70 to $80 a barrel this year, Omani news website WAF reported on Twitter.
Saudi Arabia, Kuwait and the United Arab Emirates are the only three countries that have the capacity to increase oil production, he said at an oil conference in Oman.
OPEC and its allies pledged on June 22-23 to return to 100 percent compliance with their agreement to reduce their combined output by 1.8 million bpd. The pact was first implemented in January 2017.
MIDEAST STOCKS-Saudi bourse up after three straight declines; other markets down | Reuters
MIDEAST STOCKS-Saudi bourse up after three straight declines; other markets down | Reuters:
Saudi Arabia’s stock market rose on Monday, recovering from three consecutive declines, while other markets were weak amid concerns over the impact that trade disputes involving the United States could affect the global economy and equities.
The Saudi index added 0.4 percent, recovering from three straight days of declines that sent the largest Arab bourse down 1.5 percent; however trading volumes remained low, due to global concerns and as many investors are still away from the market.
“The global economic situation is worrying for the markets, wealth managers have been reducing exposure to equities over the past month, that’s why negative sentiment is spreading across the region;” said Mazen al-Sudairi, head of research at Al Rajhi Capital.
Saudi Arabia’s stock market rose on Monday, recovering from three consecutive declines, while other markets were weak amid concerns over the impact that trade disputes involving the United States could affect the global economy and equities.
The Saudi index added 0.4 percent, recovering from three straight days of declines that sent the largest Arab bourse down 1.5 percent; however trading volumes remained low, due to global concerns and as many investors are still away from the market.
“The global economic situation is worrying for the markets, wealth managers have been reducing exposure to equities over the past month, that’s why negative sentiment is spreading across the region;” said Mazen al-Sudairi, head of research at Al Rajhi Capital.
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