Oil slides 2% as glut forecast, China virus overshadow Libya disruption - Reuters:
Oil prices fell more than 2% on Wednesday as a market surplus forecast by the International Energy Agency (IEA) and demand worries amid the outbreak of a virus in China outweighed concern over disruptions to Libya’s crude output.
Brent crude LCOc1 ended the session down $1.38, or 2.1%, at $63.21 while West Texas Intermediate CLc1 fell $1.64, or 2.8%, to settle at $56.74.
The head of the IEA, Fatih Birol, said he expects the market to be in surplus by 1 million barrels per day (bpd) in the first half of this year.
“Oil prices remain heavy on oversupply concerns and after the Saudi Energy Minister Price Abdulaziz did not offer any hints of optimism that the OPEC+ production cuts would be extended beyond March,” said Edward Moya, senior market analyst at OANDA in New York.
Wednesday 22 January 2020
QIA CEO Says Sovereign Wealth Fund Won’t Invest More in Coal - Bloomberg
QIA CEO Says Sovereign Wealth Fund Won’t Invest More in Coal - Bloomberg:
Qatar’s sovereign wealth fund plans to shift into greener assets, according to Chief Executive Officer Mansoor bin Ebrahim Al Mahmoud.
“We’re not going to invest more in the coal business,” he said Wednesday in a Bloomberg TV interview in Davos, Switzerland. The $328 billion Qatar Investment Authority also doesn’t plan to significantly expand its holdings in oil and gas.
“We have some investment in oil and gas companies; this is a fact, and this is a sector that you cannot ignore,” Mansoor Al Mahmoud said. Still, given that Qatar relies heavily on income from natural gas, the fund needs to diversify beyond the energy sector, he said.
“So I don’t see that this part of the portfolio will expand that much,” he said.
Qatar’s sovereign wealth fund plans to shift into greener assets, according to Chief Executive Officer Mansoor bin Ebrahim Al Mahmoud.
“We’re not going to invest more in the coal business,” he said Wednesday in a Bloomberg TV interview in Davos, Switzerland. The $328 billion Qatar Investment Authority also doesn’t plan to significantly expand its holdings in oil and gas.
“We have some investment in oil and gas companies; this is a fact, and this is a sector that you cannot ignore,” Mansoor Al Mahmoud said. Still, given that Qatar relies heavily on income from natural gas, the fund needs to diversify beyond the energy sector, he said.
“So I don’t see that this part of the portfolio will expand that much,” he said.
#SaudiArabia Unlikely to Exceed Borrowing Plan After Bumper Sale - Bloomberg
Saudi Arabia Unlikely to Exceed Borrowing Plan After Bumper Sale - Bloomberg:
Saudi Arabia may raise an additional $4 billion in international bonds this year, in line with its original plan, after the kingdom managed to reduce how much it pays to borrow in its latest debt sale, Finance Minister Mohammed Al-Jadaan said.
The country, which raised $5 billion from bond investors on Tuesday, is “unlikely to go for more than the equivalent of $9 billion” in new borrowing this year, Al Jadaan said in an interview with Bloomberg TV. Speaking at the World Economic Forum in Davos, Switzerland, he said the kingdom is considering issuing euros, riyals, and Islamic bonds later this year.
“We reduced pricing significantly compared to the last issuances,” Al-Jadaan said. “Yesterday showed very clearly that demand for Saudi credit is very high and very healthy. We are very pleased not only with level of demand but also the pricing.”
Saudi Arabia sold a three part bond, split between a $1.25 billion seven-year tranche at 85 basis points over U.S. Treasuries and a yield of 2.54%; a 12-year offering of $1 billion priced at a spread of 110 basis points and yield of 2.88%, and a $2.75 billion 35-year tranche, the kingdom’s longest yet, yielding 3.84%.
Saudi Arabia may raise an additional $4 billion in international bonds this year, in line with its original plan, after the kingdom managed to reduce how much it pays to borrow in its latest debt sale, Finance Minister Mohammed Al-Jadaan said.
The country, which raised $5 billion from bond investors on Tuesday, is “unlikely to go for more than the equivalent of $9 billion” in new borrowing this year, Al Jadaan said in an interview with Bloomberg TV. Speaking at the World Economic Forum in Davos, Switzerland, he said the kingdom is considering issuing euros, riyals, and Islamic bonds later this year.
“We reduced pricing significantly compared to the last issuances,” Al-Jadaan said. “Yesterday showed very clearly that demand for Saudi credit is very high and very healthy. We are very pleased not only with level of demand but also the pricing.”
Saudi Arabia sold a three part bond, split between a $1.25 billion seven-year tranche at 85 basis points over U.S. Treasuries and a yield of 2.54%; a 12-year offering of $1 billion priced at a spread of 110 basis points and yield of 2.88%, and a $2.75 billion 35-year tranche, the kingdom’s longest yet, yielding 3.84%.
#UAE’s Al Nowais Plans $500 Million Renewable Energy Fund - Bloomberg
U.A.E.’s Al Nowais Plans $500 Million Renewable Energy Fund - Bloomberg:
United Arab Emirates businessman Hussain Al Nowais is planning a $500 million fund to spur renewable energy investments across the Middle East and Africa.
Clean power is growing increasingly attractive for Middle Eastern oil producers as falling costs for solar and wind plants allow those states to free valuable crude and natural gas for export. Other countries in the region or in Africa that are poor in fuels burned for electricity are looking to renewable energy to cut hefty import bills and bring power to areas that are not already supplied.
Al Nowais is raising the fund “given the need for expansion and given the need for additional capital” for renewable energy projects, he said in an interview at the World Economic Forum in Davos, Switzerland. Al Nowais said he is in talks with “several institutional and local investors” about contributing to the fund.
United Arab Emirates businessman Hussain Al Nowais is planning a $500 million fund to spur renewable energy investments across the Middle East and Africa.
Clean power is growing increasingly attractive for Middle Eastern oil producers as falling costs for solar and wind plants allow those states to free valuable crude and natural gas for export. Other countries in the region or in Africa that are poor in fuels burned for electricity are looking to renewable energy to cut hefty import bills and bring power to areas that are not already supplied.
Al Nowais is raising the fund “given the need for expansion and given the need for additional capital” for renewable energy projects, he said in an interview at the World Economic Forum in Davos, Switzerland. Al Nowais said he is in talks with “several institutional and local investors” about contributing to the fund.
#Kuwait to Resume Oil Output by March in Area Shared With Saudis - Bloomberg
Kuwait to Resume Oil Output by March in Area Shared With Saudis - Bloomberg:
Kuwait plans to restart oil production by March at the Wafra field that it shares with Saudi Arabia, more than four years after the neighbors halted output.
Wafra has been shut since May 2015, due to a dispute over Saudi Arabia’s renewal of Chevron Corp.’s concession there. The field will resume pumping by March, Kuwaiti Oil Minister Khaled Al-Fadhel said Wednesday by phone.
Kuwait’s parliament voted earlier in the day to ratify the agreement the country reached with Saudi Arabia in December to resume production at their shared oil deposits. Fields in the so-called neutral zone can produce as much as 500,000 barrels a day -- more than each of OPEC’s three smallest members pumped last month.
Kuwaitis and Saudis alike have said a resumption would be unlikely to add significant amounts of oil to the market within the current duration of the Organization of Petroleum Exporting Countries’ production cuts deal, which runs until the end of March.
Kuwait plans to restart oil production by March at the Wafra field that it shares with Saudi Arabia, more than four years after the neighbors halted output.
Wafra has been shut since May 2015, due to a dispute over Saudi Arabia’s renewal of Chevron Corp.’s concession there. The field will resume pumping by March, Kuwaiti Oil Minister Khaled Al-Fadhel said Wednesday by phone.
Kuwait’s parliament voted earlier in the day to ratify the agreement the country reached with Saudi Arabia in December to resume production at their shared oil deposits. Fields in the so-called neutral zone can produce as much as 500,000 barrels a day -- more than each of OPEC’s three smallest members pumped last month.
Kuwaitis and Saudis alike have said a resumption would be unlikely to add significant amounts of oil to the market within the current duration of the Organization of Petroleum Exporting Countries’ production cuts deal, which runs until the end of March.
Mystery Rally Makes This Turkish Bank Bigger Than All Rivals - Bloomberg
Mystery Rally Makes This Turkish Bank Bigger Than All Rivals - Bloomberg:
A breathtaking rally in QNB Finansbank AS’s shares has made the lender more valuable than all the other listed Turkish banks combined, and traders are struggling to figure out what’s driving the surge.
QNB Finansbank, which is owned by Qatar National Bank, has doubled in value this year, pushing its market capitalization to 254 billion liras ($42 billion). That’s almost five times larger than Turkiye Garanti Bankasi AS, its largest rival, and more than the combined value of all Turkey’s other listed lenders of 237 billion liras. The gains have made QNB Finansbank about the size of Barclays Plc.
The stock is no stranger to wild fluctuations, especially since the QNB takeover in 2016, due to a lack of liquidity. But this year’s moves have been extreme: at some point on Wednesday it was up as much as 174% in 2020. That follows a 316% jump in 2019 after a gain of 63% the year before. Little more than 4 million of the more than 3.3 billion QNB Finansbank shares outstanding are publicly traded, with 99.9% of the stock closely held, according to data compiled by Bloomberg. That exacerbates oscillat
A breathtaking rally in QNB Finansbank AS’s shares has made the lender more valuable than all the other listed Turkish banks combined, and traders are struggling to figure out what’s driving the surge.
QNB Finansbank, which is owned by Qatar National Bank, has doubled in value this year, pushing its market capitalization to 254 billion liras ($42 billion). That’s almost five times larger than Turkiye Garanti Bankasi AS, its largest rival, and more than the combined value of all Turkey’s other listed lenders of 237 billion liras. The gains have made QNB Finansbank about the size of Barclays Plc.
The stock is no stranger to wild fluctuations, especially since the QNB takeover in 2016, due to a lack of liquidity. But this year’s moves have been extreme: at some point on Wednesday it was up as much as 174% in 2020. That follows a 316% jump in 2019 after a gain of 63% the year before. Little more than 4 million of the more than 3.3 billion QNB Finansbank shares outstanding are publicly traded, with 99.9% of the stock closely held, according to data compiled by Bloomberg. That exacerbates oscillat
Explainer: Can #Lebanon's new government revive the economy? - Reuters
Explainer: Can Lebanon's new government revive the economy? - Reuters:
After three months of political paralysis, Lebanon has finally formed a government under Prime Minister Hassan Diab. Now comes the task of saving the country from a biting financial crisis and winning over investors and foreign donors.
HOW LIKELY IS A DEBT DEFAULT OR RESTRUCTURING?
Lebanon’s public debt burden, equivalent to around 150% of GDP, and its twin current account and fiscal deficits looked unsustainable even before anti-government protesters took to the streets three months ago.
With many of the international sovereign bonds trading at less than half their face value, market observers see an increasing likelihood of Lebanon struggling to repay some of its obligations and seek a restructuring with creditors at some point.
After three months of political paralysis, Lebanon has finally formed a government under Prime Minister Hassan Diab. Now comes the task of saving the country from a biting financial crisis and winning over investors and foreign donors.
HOW LIKELY IS A DEBT DEFAULT OR RESTRUCTURING?
Lebanon’s public debt burden, equivalent to around 150% of GDP, and its twin current account and fiscal deficits looked unsustainable even before anti-government protesters took to the streets three months ago.
With many of the international sovereign bonds trading at less than half their face value, market observers see an increasing likelihood of Lebanon struggling to repay some of its obligations and seek a restructuring with creditors at some point.
Oil slides 2% as surplus forecast overshadows Libya disruption - Reuters
Oil slides 2% as surplus forecast overshadows Libya disruption - Reuters:
Oil prices fell more than 2% on Wednesday as a market surplus forecast by the International Energy Agency (IEA) and demand worries outweighed concern over disruptions to Libya’s crude output.
Brent crude LCOc1 was down $1.39, or 2.2%, at $63.20 a barrel by 11:09 a.m. ET (1609 GMT). West Texas Intermediate CLc1 fell $1.46, or 2.5%, to $56.92.
The head of the IEA, Fatih Birol, said he expects the market to be in surplus by 1 million barrels per day (bpd) in the first half of this year.
“Oil prices remain heavy on oversupply concerns and after the Saudi Energy Minister Price Abdulaziz did not offer any hints of optimism that the OPEC+ production cuts would be extended beyond March,” said Edward Moya, senior market analyst at OANDA in New York.
Oil prices fell more than 2% on Wednesday as a market surplus forecast by the International Energy Agency (IEA) and demand worries outweighed concern over disruptions to Libya’s crude output.
Brent crude LCOc1 was down $1.39, or 2.2%, at $63.20 a barrel by 11:09 a.m. ET (1609 GMT). West Texas Intermediate CLc1 fell $1.46, or 2.5%, to $56.92.
The head of the IEA, Fatih Birol, said he expects the market to be in surplus by 1 million barrels per day (bpd) in the first half of this year.
“Oil prices remain heavy on oversupply concerns and after the Saudi Energy Minister Price Abdulaziz did not offer any hints of optimism that the OPEC+ production cuts would be extended beyond March,” said Edward Moya, senior market analyst at OANDA in New York.
#Dubai News: Damac Chairman Says Now Is Time to Buy Real Estate - Bloomberg
Dubai News: Damac Chairman Says Now Is Time to Buy Real Estate - Bloomberg:
Now is the time to buy property in Dubai, the chairman of one of the city’s biggest developers said, months after warning the Middle East business hub faces a “disaster” on oversupply.
“Prices are rock bottom,” Damac Properties’ Hussain Sajwani said in an interview in Davos on Wednesday. “Today in Dubai what you’re buying is almost at the cost of the developer or below cost.”
“The supply has been curbed in the last couple of months. Most of the big developers are not bringing new projects,” he said. Still, “our biggest challenge going forward is the supply, we need to curb the supply further.”
The property market’s long decline since a peak in October 2014 has defied all predictions of a rebound. Dubai in September set up a committee to manage the supply and demand.
Now is the time to buy property in Dubai, the chairman of one of the city’s biggest developers said, months after warning the Middle East business hub faces a “disaster” on oversupply.
“Prices are rock bottom,” Damac Properties’ Hussain Sajwani said in an interview in Davos on Wednesday. “Today in Dubai what you’re buying is almost at the cost of the developer or below cost.”
“The supply has been curbed in the last couple of months. Most of the big developers are not bringing new projects,” he said. Still, “our biggest challenge going forward is the supply, we need to curb the supply further.”
The property market’s long decline since a peak in October 2014 has defied all predictions of a rebound. Dubai in September set up a committee to manage the supply and demand.
First #AbuDhabi Bank in talks to buy Egyptian unit of Lebanon's Bank Audi: sources - Reuters
First Abu Dhabi Bank in talks to buy Egyptian unit of Lebanon's Bank Audi: sources - Reuters:
United Arab Emirates’(UAE) largest lender First Abu Dhabi Bank (FAB) FAB.AD is in talks to potentially acquire the Egyptian subsidiary of Lebanon’s Bank Audi,(AUDI.BY) two sources familiar with the matter told Reuters.
Discussions are at an early stage, the sources said, speaking on conditions of anonymity because the matter is not public.
FAB and Bank Audi did not immediately respond to requests for comment.
Bank Audi Egypt has grown from a three-branch operation acquired by Bank Audi in 2005 to 50 branches with total assets of $4.4 billion at the end of September, Bank Audi’s Chief Financial Officer Tamer Ghazaleh said last week, when he told Reuters the bank was considering selling the unit.
United Arab Emirates’(UAE) largest lender First Abu Dhabi Bank (FAB) FAB.AD is in talks to potentially acquire the Egyptian subsidiary of Lebanon’s Bank Audi,(AUDI.BY) two sources familiar with the matter told Reuters.
Discussions are at an early stage, the sources said, speaking on conditions of anonymity because the matter is not public.
FAB and Bank Audi did not immediately respond to requests for comment.
Bank Audi Egypt has grown from a three-branch operation acquired by Bank Audi in 2005 to 50 branches with total assets of $4.4 billion at the end of September, Bank Audi’s Chief Financial Officer Tamer Ghazaleh said last week, when he told Reuters the bank was considering selling the unit.
Oil falls as surplus forecast overshadows Libya disruption - Reuters
Oil falls as surplus forecast overshadows Libya disruption - Reuters:
Oil prices fell on Wednesday as a market surplus forecast by the International Energy Agency (IEA) outweighed concern over disruptions to Libya’s crude output.
Brent crude LCOc1 was down 48 cents, or 0.7%, at $64.11 a barrel by 1311 GMT. West Texas Intermediate CLc1 fell 57 cents, or 1%, to $57.81.
The head of the IEA, Fatih Birol, said he expects the market to be in surplus by 1 million barrels per day (bpd) in the first half of this year.
“I see an abundance of energy supply in terms of oil and gas,” Birol told the Reuters Global Markets Forum on Tuesday while attending the World Economic Forum meeting in Davos.
Oil prices fell on Wednesday as a market surplus forecast by the International Energy Agency (IEA) outweighed concern over disruptions to Libya’s crude output.
Brent crude LCOc1 was down 48 cents, or 0.7%, at $64.11 a barrel by 1311 GMT. West Texas Intermediate CLc1 fell 57 cents, or 1%, to $57.81.
The head of the IEA, Fatih Birol, said he expects the market to be in surplus by 1 million barrels per day (bpd) in the first half of this year.
“I see an abundance of energy supply in terms of oil and gas,” Birol told the Reuters Global Markets Forum on Tuesday while attending the World Economic Forum meeting in Davos.
MIDEAST STOCKS-Banks hold back most of Gulf; lender FAB boosts #AbuDhabi - Reuters
MIDEAST STOCKS-Banks hold back most of Gulf; lender FAB boosts Abu Dhabi - Reuters:
Most major Gulf stock markets weakened on
Wednesday, largely pulled down by losses in banks, but Abu Dhabi
bucked the trend on the back of top lender First Abu Dhabi Bank
(FAB).
Saudi Arabia's benchmark index retreated 0.2%,
offsetting earlier gains in the day. Samba Financial Group
declined 1.6%, while Saudi British Bank was
down 1.7%.
State-owned oil giant Saudi Aramco slipped 0.3% to
34.5 riyals. EFG Hermes on Wednesday initiated Aramco's coverage
with a "neutral" rating, in line with most other brokerages, and
set a target price of 34 riyals ($9.06) per share.
The Abu Dhabi index gained 1% with First Abu Dhabi
Bank rising 1.4% and International Holding
soaring 14.9%.
Most major Gulf stock markets weakened on
Wednesday, largely pulled down by losses in banks, but Abu Dhabi
bucked the trend on the back of top lender First Abu Dhabi Bank
(FAB).
Saudi Arabia's benchmark index retreated 0.2%,
offsetting earlier gains in the day. Samba Financial Group
declined 1.6%, while Saudi British Bank was
down 1.7%.
State-owned oil giant Saudi Aramco slipped 0.3% to
34.5 riyals. EFG Hermes on Wednesday initiated Aramco's coverage
with a "neutral" rating, in line with most other brokerages, and
set a target price of 34 riyals ($9.06) per share.
The Abu Dhabi index gained 1% with First Abu Dhabi
Bank rising 1.4% and International Holding
soaring 14.9%.
Aramco International Listing ‘Still on the Cards,’ Minister Says - Bloomberg
Aramco International Listing ‘Still on the Cards,’ Minister Says - Bloomberg:
Saudi Aramco is still considering listing shares abroad, the kingdom’s Finance Minister Mohammed Al-Jadaan said.
“It’s still on the cards, we made that very clear,” Al-Jadaan told Bloomberg TV in an interview in Davos. “We will consider it, but I don’t think it’s going to be anytime soon.”
Aramco raised $29.4 billion in the world’s biggest-ever initial public offering, selling shares at 32 riyals each and overtaking Microsoft Corp. and Apple Inc. as the most valuable listed company.
The oil giant’s IPO ended up being very different from what Crown Prince Mohammed Bin Salman had envisaged when he first floated the idea in 2016 with an ambition to raise as much as $100 billion.
Saudi Aramco is still considering listing shares abroad, the kingdom’s Finance Minister Mohammed Al-Jadaan said.
“It’s still on the cards, we made that very clear,” Al-Jadaan told Bloomberg TV in an interview in Davos. “We will consider it, but I don’t think it’s going to be anytime soon.”
Aramco raised $29.4 billion in the world’s biggest-ever initial public offering, selling shares at 32 riyals each and overtaking Microsoft Corp. and Apple Inc. as the most valuable listed company.
The oil giant’s IPO ended up being very different from what Crown Prince Mohammed Bin Salman had envisaged when he first floated the idea in 2016 with an ambition to raise as much as $100 billion.
Gulf economies to pick up this year following spending spree: Reuters poll - Reuters
Gulf economies to pick up this year following spending spree: Reuters poll - Reuters:
Economic growth in the Gulf will pick up this year and next, helped by Saudi Arabia’s investment program and Expo 2020 in Dubai, although the region will continue to feel the impact of oil output cuts, a Reuters poll showed on Wednesday.
OPEC and non-OPEC allies agreed in December to deepen output cuts, coming in addition to previously agreed curbs of 1.2 million bpd, and will represent about 1.7% of global oil output.
Saudi Arabia’s economy grew 0.3% in 2019, and is expected to grow 2.0% in 2020 and 2.2% in 2021, the poll of 26 economists, conducted Jan. 7-21, projected. A similar poll three months ago, gave the same forecasts for 2020 and 2021 but estimated 0.7% growth in 2019.
“Saudi Arabia’s third quarter GDP data, showing a fall of 0.5% year-on-year, was broadly as expected, with OPEC+ cuts constraining the contribution of the oil sector to economic growth,” Oxford Economics wrote in a research note. But diversification efforts “show signs of feedthrough”, it said.
Economic growth in the Gulf will pick up this year and next, helped by Saudi Arabia’s investment program and Expo 2020 in Dubai, although the region will continue to feel the impact of oil output cuts, a Reuters poll showed on Wednesday.
OPEC and non-OPEC allies agreed in December to deepen output cuts, coming in addition to previously agreed curbs of 1.2 million bpd, and will represent about 1.7% of global oil output.
Saudi Arabia’s economy grew 0.3% in 2019, and is expected to grow 2.0% in 2020 and 2.2% in 2021, the poll of 26 economists, conducted Jan. 7-21, projected. A similar poll three months ago, gave the same forecasts for 2020 and 2021 but estimated 0.7% growth in 2019.
“Saudi Arabia’s third quarter GDP data, showing a fall of 0.5% year-on-year, was broadly as expected, with OPEC+ cuts constraining the contribution of the oil sector to economic growth,” Oxford Economics wrote in a research note. But diversification efforts “show signs of feedthrough”, it said.
#Saudi lender Samba to raise $500 mln in bonds - Reuters
Saudi lender Samba to raise $500 mln in bonds - Reuters:
Saudi lender Samba Financial Group plans to raise $500 million in seven-year bonds, a document seen by Reuters showed on Wednesday.
The bank, which ranks behind National Commercial Bank and Al Rajhi Bank, among the biggest Saudi lenders by total assets, has hired Citigroup and Standard Chartered to arrange the debt sale, which is expected to close later on Wednesday.
The notes were marketed with an initial price guidance of 160 basis points over mid-swap, according to the document issued by one of the banks leading the deal.
The issue follows Saudi Arabia’s $5 billion bond issuance on Tuesday, which saw hefty demand despite a recent rise in political tensions in the Gulf.
Saudi lender Samba Financial Group plans to raise $500 million in seven-year bonds, a document seen by Reuters showed on Wednesday.
The bank, which ranks behind National Commercial Bank and Al Rajhi Bank, among the biggest Saudi lenders by total assets, has hired Citigroup and Standard Chartered to arrange the debt sale, which is expected to close later on Wednesday.
The notes were marketed with an initial price guidance of 160 basis points over mid-swap, according to the document issued by one of the banks leading the deal.
The issue follows Saudi Arabia’s $5 billion bond issuance on Tuesday, which saw hefty demand despite a recent rise in political tensions in the Gulf.
UPDATE 3- #SaudiArabia raises $5 bln as bond investors brush off Gulf jitters - Reuters
UPDATE 3-Saudi Arabia raises $5 bln as bond investors brush off Gulf jitters - Reuters:
Saudi Arabia has raised $5 billion in bonds after receiving around $20 billion in orders, a sign that an escalation in geopolitical tensions in the Gulf has not deterred investors looking for high returns amid low global rates.
The kingdom has issued bonds with maturities of seven, 12 and 35 years, a document by one of the banks leading the deal showed, as part of plans to raise $32 billion worth of debt this year as it seeks new financing channels in an era of lower oil prices.
The bond sale is the first by a Gulf government this year and follows a rise in geopolitical tensions in the region after Iran and the United States, Saudi Arabia’s ally, traded military strikes earlier this month.
Riyadh raised $1.25 billion in seven-year bonds offering 85 basis points over U.S. Treasuries, $1 billion in 12-year notes with a spread of 110 basis points over the benchmark, and $2.75 billion in 35-year bonds, the kingdom’s longest international bonds ever, with a 3.84% yield.
Saudi Arabia has raised $5 billion in bonds after receiving around $20 billion in orders, a sign that an escalation in geopolitical tensions in the Gulf has not deterred investors looking for high returns amid low global rates.
The kingdom has issued bonds with maturities of seven, 12 and 35 years, a document by one of the banks leading the deal showed, as part of plans to raise $32 billion worth of debt this year as it seeks new financing channels in an era of lower oil prices.
The bond sale is the first by a Gulf government this year and follows a rise in geopolitical tensions in the region after Iran and the United States, Saudi Arabia’s ally, traded military strikes earlier this month.
Riyadh raised $1.25 billion in seven-year bonds offering 85 basis points over U.S. Treasuries, $1 billion in 12-year notes with a spread of 110 basis points over the benchmark, and $2.75 billion in 35-year bonds, the kingdom’s longest international bonds ever, with a 3.84% yield.
Oil slides as IEA predicts surplus, Libya disruption concerns fade - Reuters
Oil slides as IEA predicts surplus, Libya disruption concerns fade - Reuters:
Oil prices dropped on Wednesday as the International Energy Agency’s (IEA) forecast of a market surplus in the first half of this year was enough to cancel out concerns about military disruptions that have slashed Libya’s crude output.
Brent crude LCOc1 was down 30 cents, or 0.5%, at $64.29 a barrel at 0731 GMT, after falling 0.3% on Tuesday. U.S. oil CLc1 fell 33 cents, or 0.6%, to $58.05 a barrel, having declined 0.3% the day before.
The head of the IEA, Fatih Birol, said he expects the market to be in surplus by a million barrels per day (bpd) in the first half of this year.
“I see an abundance of energy supply in terms of oil and gas,” Birol told the Reuters Global Markets Forum on Tuesday, while attending the World Economic Forum meeting in Davos.
Oil prices dropped on Wednesday as the International Energy Agency’s (IEA) forecast of a market surplus in the first half of this year was enough to cancel out concerns about military disruptions that have slashed Libya’s crude output.
Brent crude LCOc1 was down 30 cents, or 0.5%, at $64.29 a barrel at 0731 GMT, after falling 0.3% on Tuesday. U.S. oil CLc1 fell 33 cents, or 0.6%, to $58.05 a barrel, having declined 0.3% the day before.
The head of the IEA, Fatih Birol, said he expects the market to be in surplus by a million barrels per day (bpd) in the first half of this year.
“I see an abundance of energy supply in terms of oil and gas,” Birol told the Reuters Global Markets Forum on Tuesday, while attending the World Economic Forum meeting in Davos.
MIDEAST STOCKS-Most major Gulf markets gain on financials; #Qatar retreats | Nasdaq
MIDEAST STOCKS-Most major Gulf markets gain on financials; Qatar retreats | Nasdaq:
Saudi Arabia's stock market rose on Wednesday buoyed by heavyweight financial stocks in line with most Gulf bourses, while Qatar bucked the trend.
Saudi's benchmark index .TASI was up 0.3% in early trade. Riyad Bank 1010.SE gained 1.6%, while Al Rajhi Bank 1120.SE inched up 0.3%.
Economic growth in the Gulf will pick up this year and next, helped by Saudi Arabia's investment programme and Expo 2020 in Dubai, although the region will continue to feel the impact of oil output cuts, a Reuters poll showed on Wednesday.
Saudi Arabia's economy grew 0.3% in 2019, and is expected to grow 2.0% in 2020 and 2.2% in 2021, the poll of 26 economists, conducted Jan. 7-21, projected.
But state-owned oil giant Saudi Aramco 2222.SE slipped 0.3% to 34.5 riyals. EFG Hermes on Wednesday initiated Aramco's coverage with "neutral" rating, in line with most other brokerages, and set a target price of 34 riyals ($9.06) per share.
Saudi Arabia's stock market rose on Wednesday buoyed by heavyweight financial stocks in line with most Gulf bourses, while Qatar bucked the trend.
Saudi's benchmark index .TASI was up 0.3% in early trade. Riyad Bank 1010.SE gained 1.6%, while Al Rajhi Bank 1120.SE inched up 0.3%.
Economic growth in the Gulf will pick up this year and next, helped by Saudi Arabia's investment programme and Expo 2020 in Dubai, although the region will continue to feel the impact of oil output cuts, a Reuters poll showed on Wednesday.
Saudi Arabia's economy grew 0.3% in 2019, and is expected to grow 2.0% in 2020 and 2.2% in 2021, the poll of 26 economists, conducted Jan. 7-21, projected.
But state-owned oil giant Saudi Aramco 2222.SE slipped 0.3% to 34.5 riyals. EFG Hermes on Wednesday initiated Aramco's coverage with "neutral" rating, in line with most other brokerages, and set a target price of 34 riyals ($9.06) per share.