Oil scales 1-year peak as OPEC+ rolls over output for April | Reuters
Oil rallied more than 4% on Thursday, hitting its highest in over a year, after OPEC and its allies agreed to keep production unchanged into April, reasoning that the demand recovery from the coronavirus pandemic was still fragile.
Brent crude rose $2.67, or 4.2%, to settle at $66.74 a barrel, after rising to $67.75, its highest since January 2020.
U.S. crude futures ended $2.55, or 4.2%, higher at $63.83, having also scaled a January 2020 peak, at $64.86.
“OPEC surprised us... The message OPEC is sending market is they’re quite willing to see oil prices run hot and ultimately, go a long way in reducing the inventory overhang built last year because of COVID-19,” said Bart Melek, head of commodity strategies at TD Securities.
Some analysts had predicted OPEC+, an alliance of the Organization of the Petroleum Exporting Countries and other major producers, would increase output by about 500,000 bpd.
Thursday, 4 March 2021
OPEC+ Squeezes Oil Production Tight to Protect Price Recovery - Bloomberg
OPEC+ Squeezes Oil Production Tight to Protect Price Recovery - Bloomberg
Saudi Arabia and its OPEC+ allies shocked the oil market with a decision to keep supply in check, sending prices surging and adding inflationary pressure to the global economy as it emerges from the pandemic.
One year on from the outbreak of a bitter price war that sent crude below zero, the kingdom showed that its priority is preserving the hard-won oil recovery rather than worrying about tightening the market too much.
“I don’t think it will overheat,” Saudi Energy Minister Prince Abdulaziz bin Salman told reporters after Thursday’s meeting. Last year “we suffered alone, we as OPEC+” and now “it’s about being vigilant and being careful,” he said.
The Organization of Petroleum Exporting Countries and its allies had been debating whether to restore as much as 1.5 million barrels a day of output in April. From trading houses in Geneva to Wall Street banks, much of the oil world was in agreement that global markets could use some more barrels to temper a rapid run-up in prices.
But after being urged to “keep our powder dry” by Prince Abdulaziz, OPEC+ members agreed to hold steady at current levels -- with the exception of modest increases granted to Russia and Kazakhstan. Saudi minister went one step further, saying the additional 1 million barrel-a-day voluntary production cut the kingdom introduced last month was now open ended.
That means the cartel will still be withholding about 7 million barrels a day from the market -- equivalent to about 7% of global demand -- even as fuel consumption recovers in many countries.
Saudi Arabia and its OPEC+ allies shocked the oil market with a decision to keep supply in check, sending prices surging and adding inflationary pressure to the global economy as it emerges from the pandemic.
One year on from the outbreak of a bitter price war that sent crude below zero, the kingdom showed that its priority is preserving the hard-won oil recovery rather than worrying about tightening the market too much.
“I don’t think it will overheat,” Saudi Energy Minister Prince Abdulaziz bin Salman told reporters after Thursday’s meeting. Last year “we suffered alone, we as OPEC+” and now “it’s about being vigilant and being careful,” he said.
The Organization of Petroleum Exporting Countries and its allies had been debating whether to restore as much as 1.5 million barrels a day of output in April. From trading houses in Geneva to Wall Street banks, much of the oil world was in agreement that global markets could use some more barrels to temper a rapid run-up in prices.
But after being urged to “keep our powder dry” by Prince Abdulaziz, OPEC+ members agreed to hold steady at current levels -- with the exception of modest increases granted to Russia and Kazakhstan. Saudi minister went one step further, saying the additional 1 million barrel-a-day voluntary production cut the kingdom introduced last month was now open ended.
That means the cartel will still be withholding about 7 million barrels a day from the market -- equivalent to about 7% of global demand -- even as fuel consumption recovers in many countries.
#AbuDhabi satellite group Yahsat has met with banks about IPO - sources | Reuters
Abu Dhabi satellite group Yahsat has met with banks about IPO - sources | Reuters
Al Yah Satellite Communications Company (Yahsat) has held the kick-off meeting with banks for a potential initial public offering, two sources familiar with the matter told Reuters.
Yahsat, backed by Abu Dhabi state fund Mubadala Investment Co, has five satellites that serve more than 150 countries, information on its website shows. It also owns United Arab Emirates satellite phone operator Thuraya.
Mubadala said in an email it does not comment on speculation and that in line with potential market opportunities, the fund may “choose to monetise certain assets at the right time”.
Yahsat did not immediately respond to a request for comment.
Al Yah Satellite Communications Company (Yahsat) has held the kick-off meeting with banks for a potential initial public offering, two sources familiar with the matter told Reuters.
Yahsat, backed by Abu Dhabi state fund Mubadala Investment Co, has five satellites that serve more than 150 countries, information on its website shows. It also owns United Arab Emirates satellite phone operator Thuraya.
Mubadala said in an email it does not comment on speculation and that in line with potential market opportunities, the fund may “choose to monetise certain assets at the right time”.
Yahsat did not immediately respond to a request for comment.
#Saudi prince pushes on with $500 billion megacity as U.S. points the finger over Khashoggi killing | Reuters
Saudi prince pushes on with $500 billion megacity as U.S. points the finger over Khashoggi killing | Reuters
It seems an unlikely vision, a megacity in the desert with no cars or roads, all run by machines that can recognise your face.
Yet preparations for NEOM, the $500 billion signature project in Prince Mohammed bin Salman’s drive to diversify Saudi Arabia’s economy, are well underway. The organisation behind the development, expected to be close to the size of Belgium when it is completed, will hire 700 people this year, according to Simon Ainslie, the venture’s chief operating officer.
While NEOM is being sold as a vision of a brighter future, international investors have yet to bite.
The scale of the project is vast and the region already has well-established transport and business hubs in Dubai, Abu Dhabi and Qatar. The development is also inextricably linked to the Crown Prince, who as de facto leader of the kingdom has drawn ire over Saudi’s war in Yemen and his own alleged links to the killing of journalist Jamal Khashoggi.
A U.S. intelligence report released last week concluded the prince approved an operation to “capture or kill” Khashoggi, who had criticised Saudi policies in columns for the Washington Post. Saudi officials deny this and have rejected the report’s findings.
Analysts say the report is unlikely to change investor sentiment towards Saudi Arabia in the absence of U.S. action against the prince.
It seems an unlikely vision, a megacity in the desert with no cars or roads, all run by machines that can recognise your face.
Yet preparations for NEOM, the $500 billion signature project in Prince Mohammed bin Salman’s drive to diversify Saudi Arabia’s economy, are well underway. The organisation behind the development, expected to be close to the size of Belgium when it is completed, will hire 700 people this year, according to Simon Ainslie, the venture’s chief operating officer.
While NEOM is being sold as a vision of a brighter future, international investors have yet to bite.
The scale of the project is vast and the region already has well-established transport and business hubs in Dubai, Abu Dhabi and Qatar. The development is also inextricably linked to the Crown Prince, who as de facto leader of the kingdom has drawn ire over Saudi’s war in Yemen and his own alleged links to the killing of journalist Jamal Khashoggi.
A U.S. intelligence report released last week concluded the prince approved an operation to “capture or kill” Khashoggi, who had criticised Saudi policies in columns for the Washington Post. Saudi officials deny this and have rejected the report’s findings.
Analysts say the report is unlikely to change investor sentiment towards Saudi Arabia in the absence of U.S. action against the prince.
Oil Surges After OPEC+ Agrees to Keep Oil Output Unchanged - Bloomberg
Oil Surges After OPEC+ Agrees to Keep Oil Output Unchanged - Bloomberg
Oil surged to the highest in more than a year after the OPEC+ alliance surprised traders with its decision to keep production unchanged, signaling the potential of an even tighter market next month.
Futures climbed more than 5% in New York on Thursday to the highest intraday level since January 2020, while global benchmark Brent also jumped. The OPEC+ alliance agreed to keep oil output unchanged in April and Saudi Arabia will also maintain its 1 million barrel-a-day voluntary production cut next month, according to delegates.
PRICES:
|
|---|
OPEC+ Decides Not to Increase Output, Sending Oil Prices Soaring - Bloomberg
OPEC+ Decides Not to Increase Output, Sending Oil Prices Soaring - Bloomberg
OPEC+ decided not to increase production next month, sending prices soaring in a market that had been expecting additional supply.
The cartel had been debating whether to restore as much as 1.5 million barrels a day of production, but after being urged to “keep our powder dry” by Saudi Arabia delegates said they decided to hold output steady at current levels. Brent crude rose 5% in London.
The decision is a victory for the Gulf kingdom, which has consistently pushed for tighter production restraints. It leaves the world facing a significant supply squeeze and higher energy costs just as widespread vaccination allows economies to start emerging from the downturn caused by the pandemic.
Crude has already rallied more than 25% this year to about $67 a barrel in London as OPEC+ kept production below demand in order to drain the glut that built up during the worst of the Covid-19 lockdowns. Without additional supply, that deficit will widen significantly in April, according to the cartel’s internal estimates.
OPEC+ decided not to increase production next month, sending prices soaring in a market that had been expecting additional supply.
The cartel had been debating whether to restore as much as 1.5 million barrels a day of production, but after being urged to “keep our powder dry” by Saudi Arabia delegates said they decided to hold output steady at current levels. Brent crude rose 5% in London.
The decision is a victory for the Gulf kingdom, which has consistently pushed for tighter production restraints. It leaves the world facing a significant supply squeeze and higher energy costs just as widespread vaccination allows economies to start emerging from the downturn caused by the pandemic.
Crude has already rallied more than 25% this year to about $67 a barrel in London as OPEC+ kept production below demand in order to drain the glut that built up during the worst of the Covid-19 lockdowns. Without additional supply, that deficit will widen significantly in April, according to the cartel’s internal estimates.
ADNOC, Korea's GS Energy to explore opportunities to grow #AbuDhabi's hydrogen economy | ZAWYA MENA Edition
ADNOC, Korea's GS Energy to explore opportunities to grow Abu Dhabi's hydrogen economy | ZAWYA MENA Edition
Abu Dhabi National Oil Company (ADNOC) and South Korea's GS Energy agreed to explore opportunities to grow Abu Dhabi’s hydrogen economy and carrier fuel export position.
During a virtual business trip hosted by ADNOC on Thursday, Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group Managing Director and CEO, and Yun-Mo Sung, Korean Minister of Trade, Industry and Energy, discussed new opportunities to expand upon the UAE and Korea’s many years of strong bilateral ties.
The discussion focused on possible areas for further economic partnership, the global climate challenge, the promise of hydrogen and opportunities for greater UAE-Korea industrial cooperation, which had in attendance of Yongsoo Huh, the President and CEO of GS Energy.
"Approximately ten percent of South Korea’s crude oil is currently imported from the UAE, Korean companies are significant stakeholders in several of Abu Dhabi’s upstream concessions and Korean contractors today play critical roles on major projects across our oil and gas value chain," Dr. Al Jaber said.
Abu Dhabi National Oil Company (ADNOC) and South Korea's GS Energy agreed to explore opportunities to grow Abu Dhabi’s hydrogen economy and carrier fuel export position.
During a virtual business trip hosted by ADNOC on Thursday, Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group Managing Director and CEO, and Yun-Mo Sung, Korean Minister of Trade, Industry and Energy, discussed new opportunities to expand upon the UAE and Korea’s many years of strong bilateral ties.
The discussion focused on possible areas for further economic partnership, the global climate challenge, the promise of hydrogen and opportunities for greater UAE-Korea industrial cooperation, which had in attendance of Yongsoo Huh, the President and CEO of GS Energy.
"Approximately ten percent of South Korea’s crude oil is currently imported from the UAE, Korean companies are significant stakeholders in several of Abu Dhabi’s upstream concessions and Korean contractors today play critical roles on major projects across our oil and gas value chain," Dr. Al Jaber said.
MIDEAST STOCKS- #Dubai bourse leads most of Gulf lower | Nasdaq
MIDEAST STOCKS-Dubai bourse leads most of Gulf lower | Nasdaq
Stock markets in Dubai and Qatar ended lower on Thursday, hit by blue-chip shares trading ex-dividend, while the Saudi index retreated ahead of an OPEC+ meet.
Saudi Arabia's benchmark index .TASI lost 0.7%, with Al Rajhi Bank 1120.SE falling 0.8% and Saudi Telecom Company 7010.SE down 2.7%.
OPEC, Russia and other oil producers meet on Thursday to decide whether to keep April output steady or increase it as they weigh a recent price rally against uncertainty about the economic recovery.
With oil above $60 a barrel, some analysts have predicted that the OPEC+ group of producers will increase output by about 500,000 barrels per day (bpd) and also expect Saudi Arabia to partially or fully end its voluntary reduction of 1 million bpd.
Dubai's main share index .DFMGI dropped 0.8%, with its largest lender Emirates NBD ENBD.DU losing 2.2%, as it traded ex-dividend.
Among others, blue-chip developer Emaar Properties EMAR.DU retreated 1.4%, a day after registering sharp gains.
On Tuesday, Emaar said it was buying out minority shareholders of its shopping centre unit, less than a decade after floating shares in the company.
In Abu Dhabi, the index .ADI eased 0.1%, hit by a 1% fall in Emirates Telecommunications Group ETISALAT.AD.
Elsewhere, the Qatari index .QSI fell 0.4%, dragged down by a 5.6% drop in telecoms firm Ooredoo ORDS.QA and a 3.6% decrease in United Development Company UDCD.QA as they traded ex-dividend.
Stock markets in Dubai and Qatar ended lower on Thursday, hit by blue-chip shares trading ex-dividend, while the Saudi index retreated ahead of an OPEC+ meet.
Saudi Arabia's benchmark index .TASI lost 0.7%, with Al Rajhi Bank 1120.SE falling 0.8% and Saudi Telecom Company 7010.SE down 2.7%.
OPEC, Russia and other oil producers meet on Thursday to decide whether to keep April output steady or increase it as they weigh a recent price rally against uncertainty about the economic recovery.
With oil above $60 a barrel, some analysts have predicted that the OPEC+ group of producers will increase output by about 500,000 barrels per day (bpd) and also expect Saudi Arabia to partially or fully end its voluntary reduction of 1 million bpd.
Dubai's main share index .DFMGI dropped 0.8%, with its largest lender Emirates NBD ENBD.DU losing 2.2%, as it traded ex-dividend.
Among others, blue-chip developer Emaar Properties EMAR.DU retreated 1.4%, a day after registering sharp gains.
On Tuesday, Emaar said it was buying out minority shareholders of its shopping centre unit, less than a decade after floating shares in the company.
In Abu Dhabi, the index .ADI eased 0.1%, hit by a 1% fall in Emirates Telecommunications Group ETISALAT.AD.
Elsewhere, the Qatari index .QSI fell 0.4%, dragged down by a 5.6% drop in telecoms firm Ooredoo ORDS.QA and a 3.6% decrease in United Development Company UDCD.QA as they traded ex-dividend.
Etihad Targets 2023 Turnaround After Virus Doubles Annual Loss - Bloomberg
Etihad Targets 2023 Turnaround After Virus Doubles Annual Loss - Bloomberg
Etihad Airways doubled its operating loss to $1.7 billion last year, after a multi-year turnaround effort at the Gulf carrier was interrupted by the coronavirus crisis.
Abu-Dhabi-based Etihad said in a statement Thursday that operating revenues halved in 2020 as passenger numbers plunged 76% to just 4.2 million. Still, it said it expects to complete the restructuring by 2023.
State-owned Etihad has been shrinking its operations for the past few years as it retreats from a strategy of transporting people between continents via a Mideast super-hub to focus more on the needs of its home territory. The latest losses take the deficit for the past five years above $7 billion.
Etihad was ahead of targets set in 2017 prior to the pandemic, registering a 55% cumulative improvement in core results that continued into the start of last year. Chief Executive Officer Tony Douglas said those measures helped the company “respond decisively to the global crisis,” and that an acceleration of the restructuring should allow it to emerge as a leaner business.
Etihad plans to rebuild operations around smaller twin-aisle jets once coronavirus lockdowns ease. In 2020, it focused flights on the Boeing Co. 787 Dreamliner, with most of the rest of the fleet parked.
Etihad Airways doubled its operating loss to $1.7 billion last year, after a multi-year turnaround effort at the Gulf carrier was interrupted by the coronavirus crisis.
Abu-Dhabi-based Etihad said in a statement Thursday that operating revenues halved in 2020 as passenger numbers plunged 76% to just 4.2 million. Still, it said it expects to complete the restructuring by 2023.
State-owned Etihad has been shrinking its operations for the past few years as it retreats from a strategy of transporting people between continents via a Mideast super-hub to focus more on the needs of its home territory. The latest losses take the deficit for the past five years above $7 billion.
Etihad was ahead of targets set in 2017 prior to the pandemic, registering a 55% cumulative improvement in core results that continued into the start of last year. Chief Executive Officer Tony Douglas said those measures helped the company “respond decisively to the global crisis,” and that an acceleration of the restructuring should allow it to emerge as a leaner business.
Etihad plans to rebuild operations around smaller twin-aisle jets once coronavirus lockdowns ease. In 2020, it focused flights on the Boeing Co. 787 Dreamliner, with most of the rest of the fleet parked.
Factbox: #SaudiArabia's major inward and outward investments | Reuters
Factbox: Saudi Arabia's major inward and outward investments | Reuters
The release of a U.S. intelligence report implicating Saudi Arabia’s Crown Prince Mohammed bin Salman in the killing of journalist Jamal Khashoggi has highlighted the political risk for companies and investors of doing business with the kingdom.
Saudi Arabia, which rejected the report’s findings, is keen to attract foreign investors to help end its dependence on oil. The kingdom has also been scouting for deals abroad to transform itself into a global economic powerhouse.
Here are some of the key investments and deals announced since 2017 when Prince Mohammed launched the Future Investment Initiative to attract global investors:
2021
The release of a U.S. intelligence report implicating Saudi Arabia’s Crown Prince Mohammed bin Salman in the killing of journalist Jamal Khashoggi has highlighted the political risk for companies and investors of doing business with the kingdom.
Saudi Arabia, which rejected the report’s findings, is keen to attract foreign investors to help end its dependence on oil. The kingdom has also been scouting for deals abroad to transform itself into a global economic powerhouse.
Here are some of the key investments and deals announced since 2017 when Prince Mohammed launched the Future Investment Initiative to attract global investors:
2021
** February 2021: Saudi Arabian Military Industries (SAMI) signed an agreement to set up a joint venture with U.S. firm Lockheed Martin to enhance the kingdom’s defence and manufacturing capabilities.** February 2021: Warner Music Group said it invested in Rotana Music, the Middle East’s largest record label owned by Saudi Arabia’s billionaire Prince Alwaleed bin Talal. [L4N2KN1E7]2020** Q4 2020: The Public Investment Fund (PIF), the kingdom’s sovereign wealth fund, invested $12.8 billion in U.S. equities as of the fourth quarter of last year, including Uber Technologies.** December 2020: Saudi Arabia was the 14th largest holder of U.S. Treasury securities, holding $136.4 billion worth. That is down 24% from December 2019, according to data from U.S. Treasury International Capital System.
** November 2020: the PIF invested around $1.3 billion to buy a 2.04% stake in India’s Reliance Retail Ventures Ltd, a unit of Reliance Industries.** July 2020: Air Products, ACWA Power and NEOM signed an agreement for a $5 billion green hydrogen-based ammonia production facility for export to global markets.** June 2020: PIF bought a 2.32% stake worth $1.5 billion in Reliance’s other company Jio Platforms, India’s leading digital services company.
#AbuDhabi's Mubadala takes orders for euro-denominated bonds: document | Reuters
Abu Dhabi's Mubadala takes orders for euro-denominated bonds: document | Reuters
Abu Dhabi state fund Mubadala began taking orders for two-tranche euro-denominated bonds comprising six- and 13-year paper, a document showed on Thursday.
Initial guidance was around 85 basis points (bps) over mid-swaps for the six-year notes and between 105 and 110 bps over mid-swaps for the 13-year notes, the document from one of the banks on the deal showed.
Abu Dhabi Commercial Bank, BNP Paribas, Citi, First Abu Dhabi Bank, ING, JPMorgan, Morgan Stanley and Standard Chartered are arranging the deal, which is expected to be launched later on Thursday.
Abu Dhabi state fund Mubadala began taking orders for two-tranche euro-denominated bonds comprising six- and 13-year paper, a document showed on Thursday.
Initial guidance was around 85 basis points (bps) over mid-swaps for the six-year notes and between 105 and 110 bps over mid-swaps for the 13-year notes, the document from one of the banks on the deal showed.
Abu Dhabi Commercial Bank, BNP Paribas, Citi, First Abu Dhabi Bank, ING, JPMorgan, Morgan Stanley and Standard Chartered are arranging the deal, which is expected to be launched later on Thursday.
Biden chooses not to antagonise Mohammed bin Salman | Financial Times
Biden chooses not to antagonise Mohammed bin Salman | Financial Times
The unclassified report into the killing of Jamal Khashoggi, released last week, has underlined the limits to Joe Biden’s commitment to human rights in his foreign policy.
 |
|
The unclassified report into the killing of Jamal Khashoggi, released last week, has underlined the limits to Joe Biden’s commitment to human rights in his foreign policy.
The report’s conclusion — incriminating Saudi Arabia’s crown prince Mohammed bin Salman in the murder of the Saudi journalist in 2018 — was long known by insiders and widely suspected by many. More interesting were the potential consequences of making this conclusion public and official.
The response has disappointed many in Biden’s own party and the proponents of a tougher stance on human rights. Not only did the US president stop short of sanctioning Saudi Arabia’s day-to-day ruler, but he also punted discussion of the issue to spokespeople. When the state department declared that the US “will never check our values at the door even when it comes to our closest security relationships”, some analysts derided the comments as hollow.
The realists leading Biden’s Saudi policy have made clear their lack of enthusiasm at publishing the report on their watch — a task the Trump administration avoided despite its legal obligations, handing the new administration a dilemma.
OPEC+ debates whether to raise or freeze oil output as price recovers | Reuters
OPEC+ debates whether to raise or freeze oil output as price recovers | Reuters
OPEC and its allies in will decide on Thursday whether to freeze oil output or raise it slightly from April as a recent price rally is clouded by concern over the fragility of economic recovery during the COVID-19 pandemic.
The market has been expecting the OPEC+ group of producers to ease supply cuts by about 500,000 barrels per day (bpd) from April. OPEC’s de facto leader Saudi Arabia has also been expected to partially or fully end its voluntary production cut of an additional 1 million bpd.
But three OPEC+ sources said on Wednesday that some key members of the Organization of the Petroleum Exporting Countries (OPEC) had suggested that output across the OPEC+ group should be kept unchanged.
It was not immediately clear whether Saudi Arabia would end its voluntary cuts or extend them, they said.
OPEC and its allies in will decide on Thursday whether to freeze oil output or raise it slightly from April as a recent price rally is clouded by concern over the fragility of economic recovery during the COVID-19 pandemic.
The market has been expecting the OPEC+ group of producers to ease supply cuts by about 500,000 barrels per day (bpd) from April. OPEC’s de facto leader Saudi Arabia has also been expected to partially or fully end its voluntary production cut of an additional 1 million bpd.
But three OPEC+ sources said on Wednesday that some key members of the Organization of the Petroleum Exporting Countries (OPEC) had suggested that output across the OPEC+ group should be kept unchanged.
It was not immediately clear whether Saudi Arabia would end its voluntary cuts or extend them, they said.
#Qatar Commercial Bank issues $500mln PNC5 AT1 | ZAWYA MENA Edition
Qatar Commercial Bank issues $500mln PNC5 AT1 | ZAWYA MENA Edition
Qatar’s Commercial Bank has priced its first international $500 million perpetual non call five-year Additional Tier 1 (PNC5 AT1) bond issuance at a yield of 4.50 percent.
The transaction attracted an order book of over $1.1 billion with the majority of the investors from UK (30 percent), Europe (30 percent), MENA (26 percent), and Asia (10 percent), the bank said in a filing on the Qatar bourse. The investor base included fixed income asset managers, pension funds and insurance companies along with significant participation from Swiss private banks.
Commenting on the transactions, Commercial Bank Group CEO, Mr Joseph Abraham said: ‘’This AT1 USD 500 million transaction is one of the largest from the region from a financial institution and we are delighted by the Investor response. The market demand and attractive pricing is clear indication of the strong confidence of international investors in the strength and economic stability of Qatar and confidence in Commercial Bank’s strategy, financial strength, prudent approach and strong execution capability.”
The issue was arranged by Credit Suisse Securities (Europe) as Global Coordinator along with Joint Lead Managers Barclays, Deutsche Bank, HSBC, JP Morgan and QNB Capital.
Qatar’s Commercial Bank has priced its first international $500 million perpetual non call five-year Additional Tier 1 (PNC5 AT1) bond issuance at a yield of 4.50 percent.
The transaction attracted an order book of over $1.1 billion with the majority of the investors from UK (30 percent), Europe (30 percent), MENA (26 percent), and Asia (10 percent), the bank said in a filing on the Qatar bourse. The investor base included fixed income asset managers, pension funds and insurance companies along with significant participation from Swiss private banks.
Commenting on the transactions, Commercial Bank Group CEO, Mr Joseph Abraham said: ‘’This AT1 USD 500 million transaction is one of the largest from the region from a financial institution and we are delighted by the Investor response. The market demand and attractive pricing is clear indication of the strong confidence of international investors in the strength and economic stability of Qatar and confidence in Commercial Bank’s strategy, financial strength, prudent approach and strong execution capability.”
The issue was arranged by Credit Suisse Securities (Europe) as Global Coordinator along with Joint Lead Managers Barclays, Deutsche Bank, HSBC, JP Morgan and QNB Capital.
#UAE's Shuaa set to gain as Spotify's Mideast rival Anghami lists on Nasdaq | ZAWYA MENA Edition
UAE's Shuaa set to gain as Spotify's Mideast rival Anghami lists on Nasdaq | ZAWYA MENA Edition
UAE’s publicly listed financial services firm Shuaa Capital is looking to boost its results following a merger deal and listing of Anghami, a homegrown Arab music streaming platform, on Nasdaq.
Abu Dhabi-based Anghami, which means “my tunes” in Arabic, had entered into a definitive merger agreement with Vistas Media Acquisition Company Inc, a publicly traded special purpose acquisition company (SPAC).
The transaction will result in Anghami becoming the first Middle East technology firm to list on Nasdaq New York.
The deal is expected to close during the second quarter of 2021 and it includes a $30 million commitment from Shuaa Capital, as well as $10 million from Vistas Media Capital, through an arrangement called private investment in public equity (PIPE) financing.
“Shuaa acted as the lead arranger for the transaction which is expected to have a positive effect on the company’s Q2 2021 financial results,” the asset management and investment banking firm told the Dubai Financial Market (DFM) on Thursday.
UAE’s publicly listed financial services firm Shuaa Capital is looking to boost its results following a merger deal and listing of Anghami, a homegrown Arab music streaming platform, on Nasdaq.
Abu Dhabi-based Anghami, which means “my tunes” in Arabic, had entered into a definitive merger agreement with Vistas Media Acquisition Company Inc, a publicly traded special purpose acquisition company (SPAC).
The transaction will result in Anghami becoming the first Middle East technology firm to list on Nasdaq New York.
The deal is expected to close during the second quarter of 2021 and it includes a $30 million commitment from Shuaa Capital, as well as $10 million from Vistas Media Capital, through an arrangement called private investment in public equity (PIPE) financing.
“Shuaa acted as the lead arranger for the transaction which is expected to have a positive effect on the company’s Q2 2021 financial results,” the asset management and investment banking firm told the Dubai Financial Market (DFM) on Thursday.
Oil extends gains on prospect of OPEC+ sticking with supply cuts | Reuters
Oil extends gains on prospect of OPEC+ sticking with supply cuts | Reuters
Oil prices rose for a second straight session on Thursday, as the possibility that OPEC+ producers might decide against increasing output at a key meeting later in the day lent support, alongside a drop in U.S. fuel inventories.
Brent crude futures added 52 cents, or 0.8%, to $64.59 a barrel, as of 0709 GMT, after climbing more than 2% on Wednesday. U.S. West Texas Intermediate (WTI) crude futures gained 43 cents, or 0.7% to $61.71 a barrel.
The Organization of the Petroleum Exporting Countries (OPEC) and allies, together called OPEC+, are considering rolling over production cuts into April instead of raising output, as a recovery in oil demand remains fragile due to the coronavirus crisis, three OPEC+ sources told Reuters.
The market had been expecting OPEC+ to ease production cuts by around 500,000 barrels per day (bpd) from April and for OPEC leader Saudi Arabia to end its voluntary production cut of an additional 1 million bpd.
Oil prices rose for a second straight session on Thursday, as the possibility that OPEC+ producers might decide against increasing output at a key meeting later in the day lent support, alongside a drop in U.S. fuel inventories.
Brent crude futures added 52 cents, or 0.8%, to $64.59 a barrel, as of 0709 GMT, after climbing more than 2% on Wednesday. U.S. West Texas Intermediate (WTI) crude futures gained 43 cents, or 0.7% to $61.71 a barrel.
The Organization of the Petroleum Exporting Countries (OPEC) and allies, together called OPEC+, are considering rolling over production cuts into April instead of raising output, as a recovery in oil demand remains fragile due to the coronavirus crisis, three OPEC+ sources told Reuters.
The market had been expecting OPEC+ to ease production cuts by around 500,000 barrels per day (bpd) from April and for OPEC leader Saudi Arabia to end its voluntary production cut of an additional 1 million bpd.
MIDEAST STOCKS-Major Gulf markets ease in early trade; #Qatar gains | Nasdaq
MIDEAST STOCKS-Major Gulf markets ease in early trade; Qatar gains | Nasdaq
Most Gulf stock markets fell in early trade on Thursday, with the Dubai index pressured by its largest lender trading ex-dividend, although Qatar snapped two consecutive sessions of losses.
In Dubai, the index .DFMGI fell 1%, on course to end a five-session winning streak, dragged by a 2.6% slide in its top lender Emirates NBD ENBD.DU.
Blue-chip developer Emaar Properties EMAR.DU dropped 1.6%, a day after it said it was buying out minority shareholders of its shopping centre unit.
The United Arab Emirates' non-oil private sector expanded for the third consecutive month in February, though at a marginal pace, a survey showed on Wednesday.
The seasonally adjusted IHS Markit UAE Purchasing Managers' Index (PMI), which covers manufacturing and services, slipped to 50.6 in February from 51.2 in January, remaining just above the 50 mark that separates growth from contraction.
Saudi Arabia's benchmark index .TASI eased 0.2%, ahead of an OPEC+ meet later in the day, with Al Rajhi Bank 1120.SE losing 0.3% and National Commercial Bank 1180.SE, the kingdom's largest lender, falling 0.8%.
OPEC sees a generally positive oil market outlook with last year's uncertainty easing, but downside risks caused by the pandemic persist, the group's secretary general and its experts said on Tuesday.
The market widely expects them to ease their production cuts, which were the deepest ever, by around 1.5 million barrels per day (bpd), with OPEC's leader, Saudi Arabia, ending its voluntary production cut of 1 million bpd.
Qatar's benchmark index .QSI edged up 0.1%, helped by its banking shares, with the Gulf's largest lender Qatar National Bank QNBK.QA rising 1.2%.
Sentiment in Qatari banks remained upbeat following a Moody's report on Monday, which said lenders' profits would remain resilient for 2021.
However, the index's gains were capped by losses at Ooredoo Qatar ORDS.QA, which was trading ex-dividend.
Most Gulf stock markets fell in early trade on Thursday, with the Dubai index pressured by its largest lender trading ex-dividend, although Qatar snapped two consecutive sessions of losses.
In Dubai, the index .DFMGI fell 1%, on course to end a five-session winning streak, dragged by a 2.6% slide in its top lender Emirates NBD ENBD.DU.
Blue-chip developer Emaar Properties EMAR.DU dropped 1.6%, a day after it said it was buying out minority shareholders of its shopping centre unit.
The United Arab Emirates' non-oil private sector expanded for the third consecutive month in February, though at a marginal pace, a survey showed on Wednesday.
The seasonally adjusted IHS Markit UAE Purchasing Managers' Index (PMI), which covers manufacturing and services, slipped to 50.6 in February from 51.2 in January, remaining just above the 50 mark that separates growth from contraction.
Saudi Arabia's benchmark index .TASI eased 0.2%, ahead of an OPEC+ meet later in the day, with Al Rajhi Bank 1120.SE losing 0.3% and National Commercial Bank 1180.SE, the kingdom's largest lender, falling 0.8%.
OPEC sees a generally positive oil market outlook with last year's uncertainty easing, but downside risks caused by the pandemic persist, the group's secretary general and its experts said on Tuesday.
The market widely expects them to ease their production cuts, which were the deepest ever, by around 1.5 million barrels per day (bpd), with OPEC's leader, Saudi Arabia, ending its voluntary production cut of 1 million bpd.
Qatar's benchmark index .QSI edged up 0.1%, helped by its banking shares, with the Gulf's largest lender Qatar National Bank QNBK.QA rising 1.2%.
Sentiment in Qatari banks remained upbeat following a Moody's report on Monday, which said lenders' profits would remain resilient for 2021.
However, the index's gains were capped by losses at Ooredoo Qatar ORDS.QA, which was trading ex-dividend.