Oil rises on U.S. vaccine rollout, Middle East tension | Reuters
Oil prices rose on Monday on optimism over the pace of coronavirus vaccinations in the United States and after the Yemen-based Houthi movement said it fired missiles on Saudi oil sites.
Still, crude prices have remained rangebound in the past three weeks, as growing expectations of surging U.S. economic activity are balanced by the slow rate of vaccination in Europe and anticipation of additional supply from Iran in coming months.
Brent rose 33 cents to settle at $63.28 a barrel. U.S. West Texas Intermediate (WTI) rose 38 cents to settle at $59.70 a barrel.
The United States has fully vaccinated 22% of its population, while the United Kingdom has vaccinated 11% fully, according to the Reuters vaccine tracker here. Still, other countries are not faring as well, with France and Germany at around 6% vaccinated.
“Oil prices rose today as a result of progress in vaccination campaigns in the U.S., which are helping the country’s plan to spend,” said Louise Dickson, Rystad Energy’s oil markets analyst.
Monday, 12 April 2021
#AbuDhabi's Adnoc Considers Drilling, Fertilizer IPOs - Bloomberg
Abu Dhabi's Adnoc Considers Drilling, Fertilizer IPOs - Bloomberg
Abu Dhabi is accelerating plans to sell shares in some oil and gas businesses as the government seeks to deepen its financial markets and diversify its sources of funding.
The state energy company, Abu Dhabi National Oil Co., is considering initial public offerings of its drilling business and a fertilizer joint venture called Fertiglobe, according to people with knowledge of the plans. The deals could raise more than $1 billion each, according to the people.
Petrostates in the Persian Gulf are trying to bolster their economies after they were hit last year by coronavirus lockdowns and the crash in oil prices. They also want to diversify from fossil fuels by using money raised from their oil assets to invest in other industries.
Deliberations on the potential listings are ongoing and no final decisions have been made. Adnoc may retain the businesses or look at other ways of monetizing them, the people said.
Both Adnoc Drilling and Fertiglobe, a venture with Amsterdam-based OCI NV, are based in Abu Dhabi. OCI confirmed that it and Adnoc are considering an IPO of Fertiglobe. Adnoc declined to comment.
Abu Dhabi is accelerating plans to sell shares in some oil and gas businesses as the government seeks to deepen its financial markets and diversify its sources of funding.
The state energy company, Abu Dhabi National Oil Co., is considering initial public offerings of its drilling business and a fertilizer joint venture called Fertiglobe, according to people with knowledge of the plans. The deals could raise more than $1 billion each, according to the people.
Petrostates in the Persian Gulf are trying to bolster their economies after they were hit last year by coronavirus lockdowns and the crash in oil prices. They also want to diversify from fossil fuels by using money raised from their oil assets to invest in other industries.
Deliberations on the potential listings are ongoing and no final decisions have been made. Adnoc may retain the businesses or look at other ways of monetizing them, the people said.
Both Adnoc Drilling and Fertiglobe, a venture with Amsterdam-based OCI NV, are based in Abu Dhabi. OCI confirmed that it and Adnoc are considering an IPO of Fertiglobe. Adnoc declined to comment.
#AbuDhabi Global Market sets up ADGM Authority; names new CEO | ZAWYA MENA Edition
Abu Dhabi Global Market sets up ADGM Authority; names new CEO | ZAWYA MENA Edition
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ADGM Authorities Blg from SouthSide.Abu Dhabi Global Market/Handout via Thomson Reuters Zawya Abu Dhabi Global Market (ADGM), the international financial centre in the emirate, has approved setting up the ‘ADGM Authority’ and named Mark Nicholas Cutis as its chief executive officer. The new authority will play a pivotal role in driving ADGM’s growth by leveraging the trends emerging across the international financial services sector and the developments associated with the post pandemic world, the centre said in a statement. Cutis, who will assume his position on June 1st, 2021, was earlier the group chief financial officer at ADNOC as well as being chief adviser of finance and investments. Before ADNOC, he worked for 10 years at the sovereign wealth fund, Abu Dhabi Investment Council, which he had joined in March 2008. |
#Dubai places first in Middle East on foreign direct investment with Dh24.7b in 2020 | Markets – Gulf News
Dubai places first in Middle East on foreign direct investment with Dh24.7b in 2020 | Markets – Gulf News
Dubai ranked first in attracting foreign direct investments in the Middle East and North Africa for 2020, and third globally on greenfield FDI projects and fourth in FDI capital flows.
FDI inflows into Dubai in 2020 amounted to Dh24.7 billion, according to Dubai FDI Monitor data released by Dubai Investment Development Agency (Dubai FDI). This led to 18,325 new jobs being created through inbound FDI, with 455 projects being greenlighted and exceeding the annual average of past five years.
On greenfield projects, Dubai's share was 2.1 per cent of all such projects in 2020, exceeding the 2 per cent mark for the first time.
Dubai ranked first in attracting foreign direct investments in the Middle East and North Africa for 2020, and third globally on greenfield FDI projects and fourth in FDI capital flows.
FDI inflows into Dubai in 2020 amounted to Dh24.7 billion, according to Dubai FDI Monitor data released by Dubai Investment Development Agency (Dubai FDI). This led to 18,325 new jobs being created through inbound FDI, with 455 projects being greenlighted and exceeding the annual average of past five years.
On greenfield projects, Dubai's share was 2.1 per cent of all such projects in 2020, exceeding the 2 per cent mark for the first time.
Mubadala Says It Is Close to IPO of Emirates Global Aluminium - Bloomberg
Mubadala Says It Is Close to IPO of Emirates Global Aluminium - Bloomberg
Abu Dhabi sovereign wealth fund Mubadala Investment Co. said it’s “close” to an initial public offering of Emirates Global Aluminium PJSC, one of the world’s biggest producers of the metal.
“We’ve been thinking about this for a couple of years and waiting for the right time for that business to be IPO’d,” Chief Executive Officer Khaldoon Al Mubarak said on Monday during a conference. “I think we’re very close now.”
“We will decide, obviously, when the appropriate market conditions are there but the company is certainly in a very strong position and I think is well placed for an IPO.”
Emirates Global Aluminium is equally owned by Mubadala and Investment Corp. of Dubai.
Abu Dhabi sovereign wealth fund Mubadala Investment Co. said it’s “close” to an initial public offering of Emirates Global Aluminium PJSC, one of the world’s biggest producers of the metal.
“We’ve been thinking about this for a couple of years and waiting for the right time for that business to be IPO’d,” Chief Executive Officer Khaldoon Al Mubarak said on Monday during a conference. “I think we’re very close now.”
“We will decide, obviously, when the appropriate market conditions are there but the company is certainly in a very strong position and I think is well placed for an IPO.”
Emirates Global Aluminium is equally owned by Mubadala and Investment Corp. of Dubai.
Most major Gulf markets fall; #AbuDhabi gains | Reuters
Most major Gulf markets fall; Abu Dhabi gains | Reuters
Most major stock markets in the Gulf ended lower on Monday, with the Saudi index pressured by its financial shares, while Abu Dhabi bucked the trend.
Saudi Arabia’s benchmark index slipped 0.3%, hit by a 1.5% fall in Al Rajhi Bank and a 2.2% decrease in Saudi National Bank, the kingdom’s largest lender.
Yemen’s Iran-aligned Houthi movement said on Monday it had fired 17 drones and two ballistic missiles at targets in Saudi Arabia, including Saudi Aramco facilities in Jubail and Jeddah.
There was no immediate Saudi confirmation of the attack.
In Dubai, the main share index fell 0.3%, hit by a 1.6% drop in blue-chip developer Emaar Properties and a 1.7% decrease in Emaar Malls.
In the previous session, Emaar Properties gained 1.7% after its managing director on Thursday said the company achieved first-quarter sales of 6 billion dirhams ($1.63 billion), compared with 2.5 billion dirhams a year earlier.
The Abu Dhabi index rose 0.4%, supported by a 0.6% gain in the country’s largest lender First Abu Dhabi Bank.
In Qatar, the benchmark index lost 0.6%, with petrochemical firm Industries Qatar falling 1.4% and Commercial Bank retreating 3%.
However, Qatar National Bank (QNB), the biggest lender in the Gulf, added 0.6%.
On Sunday, the lender reported a first quarter net profit of 3.3 billion riyals ($906.22 million), down by 7% from a year earlier as it booked 1.4 billion riyals in “precautionary” loan-loss provisions.
However, QNB’s total assets grew by 8% from a year earlier to 1.042 trillion riyals at the end of March, the bank said in a statement.
Most major stock markets in the Gulf ended lower on Monday, with the Saudi index pressured by its financial shares, while Abu Dhabi bucked the trend.
Saudi Arabia’s benchmark index slipped 0.3%, hit by a 1.5% fall in Al Rajhi Bank and a 2.2% decrease in Saudi National Bank, the kingdom’s largest lender.
Yemen’s Iran-aligned Houthi movement said on Monday it had fired 17 drones and two ballistic missiles at targets in Saudi Arabia, including Saudi Aramco facilities in Jubail and Jeddah.
There was no immediate Saudi confirmation of the attack.
In Dubai, the main share index fell 0.3%, hit by a 1.6% drop in blue-chip developer Emaar Properties and a 1.7% decrease in Emaar Malls.
In the previous session, Emaar Properties gained 1.7% after its managing director on Thursday said the company achieved first-quarter sales of 6 billion dirhams ($1.63 billion), compared with 2.5 billion dirhams a year earlier.
The Abu Dhabi index rose 0.4%, supported by a 0.6% gain in the country’s largest lender First Abu Dhabi Bank.
In Qatar, the benchmark index lost 0.6%, with petrochemical firm Industries Qatar falling 1.4% and Commercial Bank retreating 3%.
However, Qatar National Bank (QNB), the biggest lender in the Gulf, added 0.6%.
On Sunday, the lender reported a first quarter net profit of 3.3 billion riyals ($906.22 million), down by 7% from a year earlier as it booked 1.4 billion riyals in “precautionary” loan-loss provisions.
However, QNB’s total assets grew by 8% from a year earlier to 1.042 trillion riyals at the end of March, the bank said in a statement.
Oil Rises Above $60 as Investors Weigh Near-Term Demand Outlook - Bloomberg
Oil Rises Above $60 as Investors Weigh Near-Term Demand Outlook - Bloomberg
Futures in New York rose as the dollar fell, making commodities priced in the U.S. currency more attractive. Federal Reserve Chair Jerome Powell said that the U.S. economy was poised for stronger growth, but he cautioned that the pandemic remains a threat. That’s been highlighted in other regions including parts of Europe, while another wave of infections in India is overwhelming the health system. Yemen’s Houthis said they attacked oil facilities in Saudi Arabia, as the group steps up strikes on the kingdom, a reminder of political tensions in the Middle East. While such attacks have increased this year, they rarely claim lives or cause extensive damage.  |
#AbuDhabi Mubadala investment record high in 2020 - CEO | Reuters
Abu Dhabi Mubadala investment record high in 2020 - CEO | Reuters
Abu Dhabi state investor Mubadala invested a record amount in 2020 as it doubled down on growth sectors, its chief executive said on Monday. “We’ve invested more in 2020 than we have ever done in one year prior to that,” Khaldoon Khalifa al-Mubarak told a virtual event organised by Bahrain’s Investcorp. He said the company took a 6-8 week pause in March 2020 as the pandemic hit and took the time to understand the ramifications of the pandemic at a macro level and on Mubadala’s portfolio.
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Khaldoon Khalifa Al Mubarak, group chief executive officer of Mubadala Investment Company, speaks at the 2019 New Economy Forum in Beijing, China November 21, 2019. REUTERS/Jason Lee
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S&P raises long-term credit rating of #Saudi National Bank | The National
S&P raises long-term credit rating of Saudi National Bank | The National
S&P Global Ratings raised the long-term issuer credit rating of National Commercial Bank, which last week became Saudi National Bank following its merger with smaller rival Samba Financial Group.
NCB’s 'A-' rating and stable outlook reflects on the strength of the merged SNB entity, which received a GCC regional scale rating of 'gcAAA', S&P said in statement on Sunday. It withdrew its rating on Samba after its assets and liabilities were transferred to SNB.
“With a 30 per cent market share built on well-established franchises, SNB now enjoys a prime market position, strong capitalisation and a well-balanced risk profile,” S&P said.
“The stable outlook reflects our expectations that … the joint entity will successfully manage the risks associated with integration and further lending growth.”
Last week, NCB announced the completion of its merger after shareholders of Samba received shares in the merged entity, which formally began operations on April 1. NCB and Samba shareholders approved the merger last month after the Saudi Central Bank, the General Authority for Competition, the Capital Markets Authority and the stock exchange approved the deal.
S&P Global Ratings raised the long-term issuer credit rating of National Commercial Bank, which last week became Saudi National Bank following its merger with smaller rival Samba Financial Group.
NCB’s 'A-' rating and stable outlook reflects on the strength of the merged SNB entity, which received a GCC regional scale rating of 'gcAAA', S&P said in statement on Sunday. It withdrew its rating on Samba after its assets and liabilities were transferred to SNB.
“With a 30 per cent market share built on well-established franchises, SNB now enjoys a prime market position, strong capitalisation and a well-balanced risk profile,” S&P said.
“The stable outlook reflects our expectations that … the joint entity will successfully manage the risks associated with integration and further lending growth.”
Last week, NCB announced the completion of its merger after shareholders of Samba received shares in the merged entity, which formally began operations on April 1. NCB and Samba shareholders approved the merger last month after the Saudi Central Bank, the General Authority for Competition, the Capital Markets Authority and the stock exchange approved the deal.
Oil Slips Toward $59 as Investors Weigh Near-Term Demand Outlook - Bloomberg
Oil Slips Toward $59 as Investors Weigh Near-Term Demand Outlook - Bloomberg
Futures in New York lost 0.5% on Monday after falling 3.5% last week. Federal Reserve Chair Jerome Powell told CBS’s “60 Minutes” that the U.S. economy was poised for stronger growth, but he cautioned that the virus still remains a threat. That’s been highlighted in other regions including parts of Europe, while a second wave in India is overwhelming the health system.
Indian gasoline consumption, meanwhile, rose in March to the highest level in four months as millions of people favored cars over public transport to avoid being infected by the coronavirus. Overall oil-product demand fell, however.
- West Texas Intermediate crude for May delivery fell 27 cents to $59.05 a barrel on the New York Mercantile Exchange at 7:26 a.m. London time after slipping 0.5% on Friday.
- Brent for June settlement slid 0.5% to $62.63 on the ICE Futures Europe exchange after falling 0.4% in the previous session.
Futures in New York lost 0.5% on Monday after falling 3.5% last week. Federal Reserve Chair Jerome Powell told CBS’s “60 Minutes” that the U.S. economy was poised for stronger growth, but he cautioned that the virus still remains a threat. That’s been highlighted in other regions including parts of Europe, while a second wave in India is overwhelming the health system.
Indian gasoline consumption, meanwhile, rose in March to the highest level in four months as millions of people favored cars over public transport to avoid being infected by the coronavirus. Overall oil-product demand fell, however.
Most major Gulf markets gain as financials rise | Reuters
Most major Gulf markets gain as financials rise | Reuters
Most major stock markets in the Gulf rose in early trade on Monday, supported by gains in their financial stocks, although Saudi bucked the trend to trade lower.
The benchmark index in Saudi Arabia, the largest Arab economy, fell 0.9%, with Saudi National Bank, the kingdom’s top lender, declining 2%, while Banque Saudi Fransi retreated 3.2%.
The International Monetary Fund said on Sunday countries in the Middle East and Central Asia need to curb their financing requirements, as a surge in government debt, exacerbated by the pandemic, threatens recovery prospects.
Lower demand and a slump in commodity prices eroded state finances last year. In the Middle East and North Africa, fiscal deficits widened to 10.1% of GDP in 2020 from 3.8% of GDP in 2019.
The crisis led many countries to raise debt, partly taking advantage of abundant liquidity in the global markets, to afford extra spending needed to mitigate the impact of the pandemic.
In Dubai, the benchmark index added 0.2%, helped by a 0.9% increase in Emirates NBD Bank and a 1.6% rise in budget airliner Air Arabia.
The Abu Dhabi index rose 0.3%, with telecoms firm Etisalat rising 0.9% and the country’s largest lender First Abu Dhabi Bank up 0.3%.
In Qatar, the index increased 0.3%, led by a 1.1% gain in petrochemical firm Industries Qatar.
Elsewhere, Qatar National Bank (QNB), the biggest lender in the Gulf, added 0.6%.
On Sunday, the lender reported its first quarter net profit of 3.3 billion riyals ($906.22 million), down by 7% from a year earlier as it booked 1.4 billion riyals in “precautionary” loan-loss provisions.
However, QNB’s total assets grew by 8% from a year earlier to 1.042 trillion riyals at the end of March, the bank said in a statement.
Most major stock markets in the Gulf rose in early trade on Monday, supported by gains in their financial stocks, although Saudi bucked the trend to trade lower.
The benchmark index in Saudi Arabia, the largest Arab economy, fell 0.9%, with Saudi National Bank, the kingdom’s top lender, declining 2%, while Banque Saudi Fransi retreated 3.2%.
The International Monetary Fund said on Sunday countries in the Middle East and Central Asia need to curb their financing requirements, as a surge in government debt, exacerbated by the pandemic, threatens recovery prospects.
Lower demand and a slump in commodity prices eroded state finances last year. In the Middle East and North Africa, fiscal deficits widened to 10.1% of GDP in 2020 from 3.8% of GDP in 2019.
The crisis led many countries to raise debt, partly taking advantage of abundant liquidity in the global markets, to afford extra spending needed to mitigate the impact of the pandemic.
In Dubai, the benchmark index added 0.2%, helped by a 0.9% increase in Emirates NBD Bank and a 1.6% rise in budget airliner Air Arabia.
The Abu Dhabi index rose 0.3%, with telecoms firm Etisalat rising 0.9% and the country’s largest lender First Abu Dhabi Bank up 0.3%.
In Qatar, the index increased 0.3%, led by a 1.1% gain in petrochemical firm Industries Qatar.
Elsewhere, Qatar National Bank (QNB), the biggest lender in the Gulf, added 0.6%.
On Sunday, the lender reported its first quarter net profit of 3.3 billion riyals ($906.22 million), down by 7% from a year earlier as it booked 1.4 billion riyals in “precautionary” loan-loss provisions.
However, QNB’s total assets grew by 8% from a year earlier to 1.042 trillion riyals at the end of March, the bank said in a statement.
Billionaire #Saudi Family Breaks the Mold on Kingdom’s Secrecy - Bloomberg
Billionaire Saudi Family Breaks the Mold on Kingdom’s Secrecy - Bloomberg
For Ahmad BinDawood, last year’s share offering in the eponymous Saudi grocery business was a chance to shape his legacy at the family firm he’s worked at since the age of eight, while cementing a $3.1 billion fortune built over the decades by his father and uncles.
As the October public offering of BinDawood Holding Co. got underway, details emerged of some $76 million in previously undisclosed loans made by the Saudi company to family members. In a departure from the traditional secrecy associated with the kingdom’s family firms, Jeddah-based BinDawood revealed everything, put the IPO on hold and gave buyers the chance to take their money back.
As the loans were quickly repaid, the sale resumed and eventually raised about $500 million for the family, attracting $29 billion in bids along the way.
“We have to be very transparent with investors,” BinDawood said in an interview in Riyadh last month. “If there is any disclosure at any time that we need to make, we will go ahead and do it. So we took this on the shoulder and decided to announce it.”
For Ahmad BinDawood, last year’s share offering in the eponymous Saudi grocery business was a chance to shape his legacy at the family firm he’s worked at since the age of eight, while cementing a $3.1 billion fortune built over the decades by his father and uncles.
As the October public offering of BinDawood Holding Co. got underway, details emerged of some $76 million in previously undisclosed loans made by the Saudi company to family members. In a departure from the traditional secrecy associated with the kingdom’s family firms, Jeddah-based BinDawood revealed everything, put the IPO on hold and gave buyers the chance to take their money back.
As the loans were quickly repaid, the sale resumed and eventually raised about $500 million for the family, attracting $29 billion in bids along the way.
“We have to be very transparent with investors,” BinDawood said in an interview in Riyadh last month. “If there is any disclosure at any time that we need to make, we will go ahead and do it. So we took this on the shoulder and decided to announce it.”
Oil prices drop as coronavirus caseloads rise | Reuters
Oil prices drop as coronavirus caseloads rise | Reuters
Oil slipped on Monday in thin trading as rising COVID-19 case numbers in some parts of the world kept a lid on prices, even as the Federal Reserve signalled the U.S. economy may soon rebound as vaccinations accelerate.
Brent was up 28 cents, or 0.4%, at $62.67 a barrel by 0635 GMT, having risen to as high as $63.30 earlier. U.S. crude was down 23 cents, or 04%, to $59.09 a barrel, after rising as much as 46 cents earlier.
Prices have changed little since a period of volatile trading ended last Monday.
Oil slipped on Monday in thin trading as rising COVID-19 case numbers in some parts of the world kept a lid on prices, even as the Federal Reserve signalled the U.S. economy may soon rebound as vaccinations accelerate.
Brent was up 28 cents, or 0.4%, at $62.67 a barrel by 0635 GMT, having risen to as high as $63.30 earlier. U.S. crude was down 23 cents, or 04%, to $59.09 a barrel, after rising as much as 46 cents earlier.
Prices have changed little since a period of volatile trading ended last Monday.
Emaar's Alabbar to head #UAE's first digital bank | ZAWYA MENA Edition
Emaar's Alabbar to head UAE's first digital bank | ZAWYA MENA Edition
The UAE will soon get its first full-scale digital bank, Zand, that will offer both retail and corporate banking services.
Mohamed Alabbar, the founder and former chairman of Emaar Properties will head Zand.
"The UAE combines progressive regulations with commercial, financial, and technology hubs. This provides the perfect environment for a world-leading digital bank that can launch in the UAE and scale beyond," Alabbar said in a statement on Monday.
"As the first fully independent digital bank in the country, with a full UAE banking licence, Zand will provide innovative, effective financial solutions that help simplify businesses and lives, addressing the needs of both retail and corporate customers,” he said.
Zand, which will be a "digital economic accelerator", will serve as a platform for wider digital services that focus on businesses and individuals, according to the statement.
Zand’s CEO, Olivier Crespin, said: “Backed by strong shareholders and working with the best bankers and technologists, we’ve built a bank that delivers on the promise of understanding and meeting customer needs. From our systems to our processes and our team, we're built and ready, and we're looking forward to welcoming the first customers soon”.
Zand is currently awaiting regulatory clearances before launching. Olivier Crespin, who was head of Dubai-based Eradah Capital will be the CEO of Zand.
The UAE will soon get its first full-scale digital bank, Zand, that will offer both retail and corporate banking services.
Mohamed Alabbar, the founder and former chairman of Emaar Properties will head Zand.
"The UAE combines progressive regulations with commercial, financial, and technology hubs. This provides the perfect environment for a world-leading digital bank that can launch in the UAE and scale beyond," Alabbar said in a statement on Monday.
"As the first fully independent digital bank in the country, with a full UAE banking licence, Zand will provide innovative, effective financial solutions that help simplify businesses and lives, addressing the needs of both retail and corporate customers,” he said.
Zand, which will be a "digital economic accelerator", will serve as a platform for wider digital services that focus on businesses and individuals, according to the statement.
Zand’s CEO, Olivier Crespin, said: “Backed by strong shareholders and working with the best bankers and technologists, we’ve built a bank that delivers on the promise of understanding and meeting customer needs. From our systems to our processes and our team, we're built and ready, and we're looking forward to welcoming the first customers soon”.
Zand is currently awaiting regulatory clearances before launching. Olivier Crespin, who was head of Dubai-based Eradah Capital will be the CEO of Zand.
#Dubai Islamic Bank hires lenders to arrange Islamic bonds issue - document | ZAWYA MENA Edition
Dubai Islamic Bank hires lenders to arrange Islamic bonds issue - document | ZAWYA MENA Edition
Dubai Islamic Bank, the largest Islamic lender in the United Arab Emirates, has hired banks to arrange a planned benchmark issuance of U.S. dollar-denominated Additional Tier 1 sukuk, a document showed on Monday.
Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC and Standard Chartered will arrange fixed income investor calls starting on Monday, a document from one of the banks showed.
An issuance of AT1 Islamic bonds that are non-callable for six years will follow, subject to market conditions. Benchmark size generally means at least $500 million.
Sources told Reuters last week that DIB was planning to tap the international debt markets with U.S. dollar-denominated AT1 sukuk.
AT1 bonds, the riskiest debt instruments banks can issue, are designed to be perpetual in nature but issuers can call them after a specified period.
DIB issued $1 billion in AT1 sukuk in November and several Gulf lenders have taken advantage of low rates to shore up their Tier 1 capital this year.
Saudi Arabia's largest lender, National Commercial Bank, led the way in January by raising $1.25 billion in AT1 sukuk with the lowest coupon from the region.
Dubai Islamic Bank, the largest Islamic lender in the United Arab Emirates, has hired banks to arrange a planned benchmark issuance of U.S. dollar-denominated Additional Tier 1 sukuk, a document showed on Monday.
Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC and Standard Chartered will arrange fixed income investor calls starting on Monday, a document from one of the banks showed.
An issuance of AT1 Islamic bonds that are non-callable for six years will follow, subject to market conditions. Benchmark size generally means at least $500 million.
Sources told Reuters last week that DIB was planning to tap the international debt markets with U.S. dollar-denominated AT1 sukuk.
AT1 bonds, the riskiest debt instruments banks can issue, are designed to be perpetual in nature but issuers can call them after a specified period.
DIB issued $1 billion in AT1 sukuk in November and several Gulf lenders have taken advantage of low rates to shore up their Tier 1 capital this year.
Saudi Arabia's largest lender, National Commercial Bank, led the way in January by raising $1.25 billion in AT1 sukuk with the lowest coupon from the region.