First Abu Dhabi Bank plans to issue perpetual bonds as soon as September - sources | ZAWYA MENA Edition:
First Abu Dhabi Bank (FAB) plans to issue Additional Tier 1 (AT1) bonds as soon as September, two sources familiar with the matter said.
One of the sources said FAB, the largest bank in the United Arab Emirates, will likely issue $750 million in AT1 bonds.
"We always actively monitor our capital positions and we will always make sure to keep them at the best ratios within regulatory buffers," Rula Al Qadi, head of group funding at FAB, said in response to a Reuters query.
Additional Tier 1 (AT1) bonds, the riskiest debt instruments banks can issue, are designed to be perpetual in nature, but lenders can call them after a specified period.
In June, FAB redeemed $750 million in AT1 bonds on their first call date.
Monday, 31 August 2020
Oil dips as prices struggle to break through demand uncertainty - Reuters
Oil dips as prices struggle to break through demand uncertainty - Reuters:
Oil prices dropped on Monday, with Brent slipping from a five-month high as global demand remained below pre-COVID levels while U.S. production edged up.
Brent crude futures settled at $45.28 a barrel, down 53 cents, or 1.2%. U.S. West Texas Intermediate crude CLc1 settled at $42.61 a barrel, down 36 cents, or 0.8%.
Brent still closed out August up 7.5% for a fifth successive monthly price rise. WTI logged a fourth monthly gain at 5.8% after hitting a five-month high of $43.78 a barrel on Aug. 26 when Hurricane Laura struck.
Still, with key economies around the world limply recovering from coronavirus lockdowns, analysts said the market could remain oversupplied with fuel.
Oil prices dropped on Monday, with Brent slipping from a five-month high as global demand remained below pre-COVID levels while U.S. production edged up.
Brent crude futures settled at $45.28 a barrel, down 53 cents, or 1.2%. U.S. West Texas Intermediate crude CLc1 settled at $42.61 a barrel, down 36 cents, or 0.8%.
Brent still closed out August up 7.5% for a fifth successive monthly price rise. WTI logged a fourth monthly gain at 5.8% after hitting a five-month high of $43.78 a barrel on Aug. 26 when Hurricane Laura struck.
Still, with key economies around the world limply recovering from coronavirus lockdowns, analysts said the market could remain oversupplied with fuel.
European, Middle Eastern & African Stocks - Bloomberg #UAE #SaudiArabia #Qatar close
European, Middle Eastern & African Stocks - Bloomberg:
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Israel Sees $6.5 Billion in Trade as #UAE Peace Talks Start - Bloomberg
Israel Sees $6.5 Billion in Trade as UAE Peace Talks Start - Bloomberg:
Talks to normalize relations between Israel and the United Arab Emirates launch this week with a focus on economic issues, with thornier defense matters pushed off as controversy churns around the Gulf Nation’s bid to buy the U.S.’s top warplane.
Israel’s Finance Ministry sees potential for annual bilateral trade starting at $2 billion and building up to $6.5 billion once cooperation matures, according to deputy chief economist Lev Drucker. This week’s trip will center on promoting cooperation in fields like tourism, finance, trade and health, according to Israeli Prime Minister Benjamin Netanyahu.
The UAE Foreign Ministry declined to comment.
Just three weeks ago such a meeting would have been unheard of. But on Aug. 13, the countries announced their plan to normalize ties, a first between Israel and a Gulf Arab nation, and only the third such arrangement between the Jewish state and an Arab one. Making this week’s two-day gathering even more eventful is that on Monday, the delegation of Israelis and Americans are flying from Tel Aviv to Abu Dhabi, over Saudi Arabia -- a first commercial flight of its kind for an Israeli airline.
Talks to normalize relations between Israel and the United Arab Emirates launch this week with a focus on economic issues, with thornier defense matters pushed off as controversy churns around the Gulf Nation’s bid to buy the U.S.’s top warplane.
Israel’s Finance Ministry sees potential for annual bilateral trade starting at $2 billion and building up to $6.5 billion once cooperation matures, according to deputy chief economist Lev Drucker. This week’s trip will center on promoting cooperation in fields like tourism, finance, trade and health, according to Israeli Prime Minister Benjamin Netanyahu.
The UAE Foreign Ministry declined to comment.
Just three weeks ago such a meeting would have been unheard of. But on Aug. 13, the countries announced their plan to normalize ties, a first between Israel and a Gulf Arab nation, and only the third such arrangement between the Jewish state and an Arab one. Making this week’s two-day gathering even more eventful is that on Monday, the delegation of Israelis and Americans are flying from Tel Aviv to Abu Dhabi, over Saudi Arabia -- a first commercial flight of its kind for an Israeli airline.
Grocery retailer Bindawood announces intention to list on #Saudi bourse | ZAWYA MENA Edition
Grocery retailer Bindawood announces intention to list on Saudi bourse | ZAWYA MENA Edition:
Saudi Arabian grocery retailer BinDawood Holding Co on Monday announced its intention to list on the Saudi bourse, with plans to sell existing shares and have a free float of 20%.
The company has 73 stores including 51 hypermarkets and 22 supermarkets, making it the third-largest operator of hypermarkets and supermarkets in Saudi Arabia by revenue in 2019, it said.
BinDawood Holding, which controls supermarket chains BinDawood and Danube in the kingdom, this year postponed its planned IPO in the wake of the coronavirus outbreak.
Saudi Arabia is encouraging more family-owned companies to list in a bid to deepen its capital markets under a reform push aimed at cutting the kingdom’s reliance on oil.
Saudi Arabian grocery retailer BinDawood Holding Co on Monday announced its intention to list on the Saudi bourse, with plans to sell existing shares and have a free float of 20%.
The company has 73 stores including 51 hypermarkets and 22 supermarkets, making it the third-largest operator of hypermarkets and supermarkets in Saudi Arabia by revenue in 2019, it said.
BinDawood Holding, which controls supermarket chains BinDawood and Danube in the kingdom, this year postponed its planned IPO in the wake of the coronavirus outbreak.
Saudi Arabia is encouraging more family-owned companies to list in a bid to deepen its capital markets under a reform push aimed at cutting the kingdom’s reliance on oil.
UPDATE 3- #Dubai plans comeback to debt markets amid sharp economic downturn - Reuters
UPDATE 3-Dubai plans comeback to debt markets amid sharp economic downturn - Reuters:
Dubai has hired banks to advise it on its comeback to the international debt markets as the Middle East trade and tourism hub seeks to bolster finances hit by the coronavirus pandemic.
It is planning to issue U.S. dollar-denominated 10-year Islamic bonds, or sukuk, and 30-year conventional bonds, a document issued by one of the banks leading the deal showed.
Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, and Standard Chartered will arrange investor calls, which will begin on Monday, ahead of the potential debt offering.
The planned deals will be of benchmark size, which generally means upwards of $500 million, as part of a $6 billion sukuk issuance programme and of a $5 billion bond issuance programme, the document showed.
A banking source estimated the issuance could be around $2 billion.
Dubai has hired banks to advise it on its comeback to the international debt markets as the Middle East trade and tourism hub seeks to bolster finances hit by the coronavirus pandemic.
It is planning to issue U.S. dollar-denominated 10-year Islamic bonds, or sukuk, and 30-year conventional bonds, a document issued by one of the banks leading the deal showed.
Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, and Standard Chartered will arrange investor calls, which will begin on Monday, ahead of the potential debt offering.
The planned deals will be of benchmark size, which generally means upwards of $500 million, as part of a $6 billion sukuk issuance programme and of a $5 billion bond issuance programme, the document showed.
A banking source estimated the issuance could be around $2 billion.
Emirates airline got $2 billion injection from #Dubai government: document - Reuters
Emirates airline got $2 billion injection from Dubai government: document - Reuters:
Emirates airline has received 7.3 billion dirhams ($2 billion) from the government of Dubai as it faces a cash crunch caused by the COVID-19 pandemic, a bond prospectus seen by Reuters shows.
Aviation has been one of the worst-hit industries during the pandemic and Emirates has cut thousands of jobs as it tries to manage the crisis, sources have said.
The government provided 7.3 billion dirhams to the airline it owns after Dubai’s crown prince in March promised equity to Emirates to see it through the crisis, the prospectus shows.
No such injection has been publicly announced by the government or the airline.
The details were disclosed in a prospectus for a potential bond issuance by the Dubai government.
Emirates airline has received 7.3 billion dirhams ($2 billion) from the government of Dubai as it faces a cash crunch caused by the COVID-19 pandemic, a bond prospectus seen by Reuters shows.
Aviation has been one of the worst-hit industries during the pandemic and Emirates has cut thousands of jobs as it tries to manage the crisis, sources have said.
The government provided 7.3 billion dirhams to the airline it owns after Dubai’s crown prince in March promised equity to Emirates to see it through the crisis, the prospectus shows.
No such injection has been publicly announced by the government or the airline.
The details were disclosed in a prospectus for a potential bond issuance by the Dubai government.
Brent hits five-month high on #AbuDhabi supply cuts, China data - Reuters
Brent hits five-month high on Abu Dhabi supply cuts, China data - Reuters:
Oil rose on Monday, with Brent touching the highest in five months, underpinned by a 30% cut in Abu Dhabi crude supplies and encouraging Chinese data even as global demand struggles to return to pre-COVID levels in a well supplied market.
Brent crude futures for November LCOc1 advanced to $46.38 a barrel earlier, the highest since March, and was fetching $46.27 by 0656 GMT, up 46 cents, or 1%. U.S. West Texas Intermediate crude CLc1 was at $43.25 a barrel, up 28 cents, or 0.7%.
Brent is set to close out August with a fifth successive monthly price rise while WTI is on track for a fourth monthly gain, having hit a five-month high of $43.78 a barrel on Aug. 26 when Hurricane Laura struck.
Abu Dhabi National Oil Company told its customers on Monday that it will reduce October supplies by 30%, up from a 5% cut in September, as directed by the United Arab Emirates government to meet its commitment on the recent OPEC+ agreement.
Oil rose on Monday, with Brent touching the highest in five months, underpinned by a 30% cut in Abu Dhabi crude supplies and encouraging Chinese data even as global demand struggles to return to pre-COVID levels in a well supplied market.
Brent crude futures for November LCOc1 advanced to $46.38 a barrel earlier, the highest since March, and was fetching $46.27 by 0656 GMT, up 46 cents, or 1%. U.S. West Texas Intermediate crude CLc1 was at $43.25 a barrel, up 28 cents, or 0.7%.
Brent is set to close out August with a fifth successive monthly price rise while WTI is on track for a fourth monthly gain, having hit a five-month high of $43.78 a barrel on Aug. 26 when Hurricane Laura struck.
Abu Dhabi National Oil Company told its customers on Monday that it will reduce October supplies by 30%, up from a 5% cut in September, as directed by the United Arab Emirates government to meet its commitment on the recent OPEC+ agreement.
MIDEAST STOCKS- #Saudi gains in early trade; other markets mixed - Reuters
MIDEAST STOCKS-Saudi gains in early trade; other markets mixed - Reuters:
Saudi Arabia’s stock market rose in early trade on Monday, boosted by energy and financial companies, while shares in the United Arab Emirates moved sideways.
The kingdom’s benchmark index was up 0.3%, with state oil company Saudi Aramco rising 1% and Riyad Bank gaining 0.8%.
Saudi Aramco has discovered two new oil and gas fields in the northern regions, the kingdom’s energy minister said on Sunday, state news agency SPA reported.
The oil giant will carry on with its efforts to estimate the total amount of oil and gas in the two fields and is drilling more wells to determine their areas and capacities, energy minister Prince Abdulaziz bin Salman Al-Saud said.
Dubai’s main share index slipped 0.3%, hurt by a 1.8% fall in Emirates NBD Bank and a 0.8% drop in Dubai Investments.
In Abu Dhabi, the index gained 0.4%, helped by a 0.7% rise in the country’s largest lender First Abu Dhabi Bank and a 0.5% increase in Emirates Telecommunications .
The Qatari index edged up 0.1% as utility firm Qatar Electricity and Water Company gained 1.3%.
Saudi Arabia’s stock market rose in early trade on Monday, boosted by energy and financial companies, while shares in the United Arab Emirates moved sideways.
The kingdom’s benchmark index was up 0.3%, with state oil company Saudi Aramco rising 1% and Riyad Bank gaining 0.8%.
Saudi Aramco has discovered two new oil and gas fields in the northern regions, the kingdom’s energy minister said on Sunday, state news agency SPA reported.
The oil giant will carry on with its efforts to estimate the total amount of oil and gas in the two fields and is drilling more wells to determine their areas and capacities, energy minister Prince Abdulaziz bin Salman Al-Saud said.
Dubai’s main share index slipped 0.3%, hurt by a 1.8% fall in Emirates NBD Bank and a 0.8% drop in Dubai Investments.
In Abu Dhabi, the index gained 0.4%, helped by a 0.7% rise in the country’s largest lender First Abu Dhabi Bank and a 0.5% increase in Emirates Telecommunications .
The Qatari index edged up 0.1% as utility firm Qatar Electricity and Water Company gained 1.3%.
Coronavirus ends ‘golden’ era for sovereign wealth funds | Financial Times
Coronavirus ends ‘golden’ era for sovereign wealth funds | Financial Times:
The “golden age” of sovereign wealth funds has ended, according to academic research that predicts the coronavirus pandemic will result in profound changes for the state-backed investment vehicles.
Sovereign wealth funds, which oversee $6tn globally, are being tapped by governments to stabilise budgets and mitigate the effects of the economic fallout of the pandemic, according to academics at Bocconi University, New York University and London School of Economics.
SWFs linked to commodities such as oil, in particular, are “facing the most severe adverse shock in their history”, with the pandemic adding to problems such as low oil prices and declining hydrocarbon revenues.
“The Covid-19 crisis is a turning point in the history of SWFs. This dramatic, unexpected shock accelerates the pre-existing negative trend of declining oil prices and slowing of global trade, the two main drivers of SWF growth,” said Bernardo Bortolotti, an economics professor and one of the report’s authors.
The “golden age” of sovereign wealth funds has ended, according to academic research that predicts the coronavirus pandemic will result in profound changes for the state-backed investment vehicles.
Sovereign wealth funds, which oversee $6tn globally, are being tapped by governments to stabilise budgets and mitigate the effects of the economic fallout of the pandemic, according to academics at Bocconi University, New York University and London School of Economics.
SWFs linked to commodities such as oil, in particular, are “facing the most severe adverse shock in their history”, with the pandemic adding to problems such as low oil prices and declining hydrocarbon revenues.
“The Covid-19 crisis is a turning point in the history of SWFs. This dramatic, unexpected shock accelerates the pre-existing negative trend of declining oil prices and slowing of global trade, the two main drivers of SWF growth,” said Bernardo Bortolotti, an economics professor and one of the report’s authors.
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