Oil settles up 1% on low U.S. output after hurricane | Reuters
Oil prices jumped on Wednesday and settled up more than 1% as U.S. Gulf of Mexico producers made slow progress in restoring output after Hurricane Ida.
Brent settled up91 cents, or 1.3%, at $72.60 and U.S. West Texas Intermediate (WTI) crude settled up 95 cents, or 1.4%, to $69.30 a barrel.
Producers in the Gulf are still struggling to restart operations nine days after Ida swept through the region with powerful winds and drenching rain.
About 77% of U.S. Gulf production remained offline on Tuesday, or about 1.4 million barrels per day (bpd). About 17.5 million barrels of oil have been lost to the market so far. [nL1N2Q21OI]
The Gulf's offshore wells make up about 17% of U.S. output.
Wednesday, 8 September 2021
#UAE's anti-money laundering body endorses framework for virtual assets | Reuters
UAE's anti-money laundering body endorses framework for virtual assets | Reuters
A United Arab Emirates committee tasked with fighting money laundering has endorsed a regulatory framework for virtual assets, the Gulf state's central bank said on Wednesday.
The National Committee for Combating Money-Laundering and Financing of Terrorism and Illegal Organisations has "announced the adoption of a regulatory framework for virtual assets in the UAE, concordant with approved anti-money laundering and combating the financing of terrorism standards," the central bank - which is one of the committee members - said in a statement.
The central bank and the Securities and Commodities Authority have been tasked with overseeing the implementation of the rules, the statement said.
"This regulatory framework is an initial step in providing comprehensive regulation of virtual assets, and safeguards the financial system and investors from money laundering and terrorist financing risks," it said.
In 2019, the financial crimes watchdog, the Financial Action Task Force, announced that cryptocurrency firms would be subjected to rules to prevent the abuse of digital coins such as bitcoin for money laundering. It was the first worldwide regulatory attempt to constrain the rapidly growing sector.
A United Arab Emirates committee tasked with fighting money laundering has endorsed a regulatory framework for virtual assets, the Gulf state's central bank said on Wednesday.
The National Committee for Combating Money-Laundering and Financing of Terrorism and Illegal Organisations has "announced the adoption of a regulatory framework for virtual assets in the UAE, concordant with approved anti-money laundering and combating the financing of terrorism standards," the central bank - which is one of the committee members - said in a statement.
The central bank and the Securities and Commodities Authority have been tasked with overseeing the implementation of the rules, the statement said.
"This regulatory framework is an initial step in providing comprehensive regulation of virtual assets, and safeguards the financial system and investors from money laundering and terrorist financing risks," it said.
In 2019, the financial crimes watchdog, the Financial Action Task Force, announced that cryptocurrency firms would be subjected to rules to prevent the abuse of digital coins such as bitcoin for money laundering. It was the first worldwide regulatory attempt to constrain the rapidly growing sector.
Analysis: The West owes #Qatar a favour over Afghanistan. That was the point | Reuters
Analysis: The West owes Qatar a favour over Afghanistan. That was the point | Reuters
Since the U.S. withdrawal from Afghanistan, the world's top diplomats have been beating a path to Qatar, long the gateway to the Taliban and now the essential go-between as the West tries to deal with the new Kabul government. This is no accident.
Analysts describe Qatar's emergence as a broker in Afghanistan as a part of a carefully nurtured strategy by the tiny but rich state to bolster its own security, by becoming indispensable as a venue for international mediation.
The world's biggest liquefied natural gas producer, the small desert peninsula country is one of the wealthiest nations per capita. It is home to barely 3 million people, 85 percent of them foreigners with guest worker visas. Yet it has long held outsized ambitions, hosting both the Middle East's biggest U.S. air base and its most influential TV channel.
It squandered much of its regional clout over the past decade by overreaching in the wake of the 2011 Arab Spring revolts, when it backed pro-democracy movements and rebels across the region. Furious neighbours led by Saudi Arabia and the United Arab Emirates, with their ally Egypt, punished it with trade sanctions and diplomatic isolation.
Since the U.S. withdrawal from Afghanistan, the world's top diplomats have been beating a path to Qatar, long the gateway to the Taliban and now the essential go-between as the West tries to deal with the new Kabul government. This is no accident.
Analysts describe Qatar's emergence as a broker in Afghanistan as a part of a carefully nurtured strategy by the tiny but rich state to bolster its own security, by becoming indispensable as a venue for international mediation.
The world's biggest liquefied natural gas producer, the small desert peninsula country is one of the wealthiest nations per capita. It is home to barely 3 million people, 85 percent of them foreigners with guest worker visas. Yet it has long held outsized ambitions, hosting both the Middle East's biggest U.S. air base and its most influential TV channel.
It squandered much of its regional clout over the past decade by overreaching in the wake of the 2011 Arab Spring revolts, when it backed pro-democracy movements and rebels across the region. Furious neighbours led by Saudi Arabia and the United Arab Emirates, with their ally Egypt, punished it with trade sanctions and diplomatic isolation.
Aramco oil pipelines investors to sell at least $4 bln in bonds in Q4 - sources | Reuters
Aramco oil pipelines investors to sell at least $4 bln in bonds in Q4 - sources | Reuters
A consortium led by EIG Global Energy Partners that took a stake in Saudi Aramco's oil pipelines is preparing to issue at least $4 billion in the fourth quarter to refinance a loan that largely funded the $12.4 billion deal, two sources familiar with the matter said.
The deal gave the consortium controlled by EIG a 49% stake in a new entity, Aramco Oil Pipelines Company, and rights to 25 years of tariff payments for oil transported through Aramco's extensive oil pipelines network.
That deal, which includes all of Aramco's existing and future stabilised crude pipelines, was backed by $10.5 billion financing from a large group of banks including Citi, HSBC and JPMorgan.
The bonds will be refinanced across two or three deals, sources have said.
The pipeline investors will likely accelerate to the fourth quarter a previous timeline to come to market with the first bonds, one of them adding it would likely be next month.
A consortium led by EIG Global Energy Partners that took a stake in Saudi Aramco's oil pipelines is preparing to issue at least $4 billion in the fourth quarter to refinance a loan that largely funded the $12.4 billion deal, two sources familiar with the matter said.
The deal gave the consortium controlled by EIG a 49% stake in a new entity, Aramco Oil Pipelines Company, and rights to 25 years of tariff payments for oil transported through Aramco's extensive oil pipelines network.
That deal, which includes all of Aramco's existing and future stabilised crude pipelines, was backed by $10.5 billion financing from a large group of banks including Citi, HSBC and JPMorgan.
The bonds will be refinanced across two or three deals, sources have said.
The pipeline investors will likely accelerate to the fourth quarter a previous timeline to come to market with the first bonds, one of them adding it would likely be next month.
#Saudi Billionaire Prince Alwaleed to Sell Four Seasons Stake for $2.2 Billion - Bloomberg
Saudi Billionaire Prince Alwaleed to Sell Four Seasons Stake for $2.2 Billion - Bloomberg
Bill Gates’s investment firm will pay Saudi billionaire Prince Alwaleed bin Talal $2.2 billion to raise its stake in Four Seasons Holding Co.
Cascade Investment LLC will buy a 23.75% stake from Kingdom Holding Co, giving the business a $10 billion enterprise value. As part of the all-cash deal, Cascade’s stake will increase to 71.25%.
Kingdom Holding will use the proceeds for investments and to repay some outstanding loans. The deal is expected to close in January 2022. Four Seasons Chairman, Isadore Sharp, will retain his 5% stake.
Four Seasons shareholders took the company private in 2007, with Gates and Alwaleed leading the deal. The new owners expanded the company’s footprint to more markets in a bid to capitalize on a booming market for luxury travel.
Four Seasons managed 74 hotels when it agreed to be acquired by Gates and Alwaleed. Now it operates 121 properties, with more than 50 projects in the pipeline.
It’s also expanded efforts to attach its brand to luxury homes, as real estate developers realized that affluent buyers would pay more to live in a condo or residential community associated with the hotel brand.
Bill Gates’s investment firm will pay Saudi billionaire Prince Alwaleed bin Talal $2.2 billion to raise its stake in Four Seasons Holding Co.
Cascade Investment LLC will buy a 23.75% stake from Kingdom Holding Co, giving the business a $10 billion enterprise value. As part of the all-cash deal, Cascade’s stake will increase to 71.25%.
Kingdom Holding will use the proceeds for investments and to repay some outstanding loans. The deal is expected to close in January 2022. Four Seasons Chairman, Isadore Sharp, will retain his 5% stake.
Four Seasons shareholders took the company private in 2007, with Gates and Alwaleed leading the deal. The new owners expanded the company’s footprint to more markets in a bid to capitalize on a booming market for luxury travel.
Four Seasons managed 74 hotels when it agreed to be acquired by Gates and Alwaleed. Now it operates 121 properties, with more than 50 projects in the pipeline.
It’s also expanded efforts to attach its brand to luxury homes, as real estate developers realized that affluent buyers would pay more to live in a condo or residential community associated with the hotel brand.
MIDEAST STOCKS #AbuDhabi stocks at record highs as Etisalat extends gains | Reuters
MIDEAST STOCKS Abu Dhabi stocks at record highs as Etisalat extends gains | Reuters
Abu Dhabi stocks closed at an all-time high on Wednesday as telecoms giant Etisalat extended gains from the previous session when it announced securing required approvals to increase the foreign ownership limit to 49%.
The Abu Dhabi index (.ADI) gained 0.9%, buoyed by a 2.6% rise in Emirates Telecommunications Group (Etisalat) (ETISALAT.AD).
The market has also been rising thanks to the positive sentiment, driven by the expectations of new IPOs from ADQ and others, said Wael Makarem, senior market strategist at Exness.
ADNOC Drilling said on Monday it intended to list on the Abu Dhabi bourse. read more
Elsewhere, Dana Gas (DANA.AD) jumped 5.8% following a $250 million financing agreement by Pearl Petroleoum - a consortium led by Dana Gas and Crescent Petroleum - to support the gas expansion works at the Khor Mor gas plant in the Kurdistan Region of Iraq.
Saudi Arabia's benchmark index (.TASI) added 0.4%, its fifth consecutive rise, led by a 1.1% gain in Al Rajhi Bank (1120.SE).
The kingdom removed the United Arab Emirates, Argentina and South Africa from its entry banned country list and re-allowed citizens to travel to the three countries starting Sept. 8. read more
Tourism Enterprises Co (4170.SE) climbed 5.1%.
Dubai's main share index (.DFMGI) eased 0.1%, hit by a 1% decline in blue-chip developer Emaar Properties (EMAR.DU), extending losses from the previous session.
The index's losses, although, were capped by gains at Mashreq Bank (MASB.DU), which surged more than 10%, a day after it announced inauguration of its representative office in Shanghai amid a strategic push to expand its presence in China.
However, investors are optimistic about the increasing strategic cooperation between the UAE and Saudi Arabia and from the Saudi travel ban lift as the Dubai Expo draws nearer, which would aid the stock market in the long run, said Makarem.
In Qatar, the index (.QSI) added 0.1%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) ended 0.4% higher, with Fawry for Banking Technology and Electronic (FWRY.CA) leading the gains.
In Egypt, the stock market received some support as the government announced its plans to consider IPOs of public companies by the end of the year, Makarem added.
Abu Dhabi stocks closed at an all-time high on Wednesday as telecoms giant Etisalat extended gains from the previous session when it announced securing required approvals to increase the foreign ownership limit to 49%.
The Abu Dhabi index (.ADI) gained 0.9%, buoyed by a 2.6% rise in Emirates Telecommunications Group (Etisalat) (ETISALAT.AD).
The market has also been rising thanks to the positive sentiment, driven by the expectations of new IPOs from ADQ and others, said Wael Makarem, senior market strategist at Exness.
ADNOC Drilling said on Monday it intended to list on the Abu Dhabi bourse. read more
Elsewhere, Dana Gas (DANA.AD) jumped 5.8% following a $250 million financing agreement by Pearl Petroleoum - a consortium led by Dana Gas and Crescent Petroleum - to support the gas expansion works at the Khor Mor gas plant in the Kurdistan Region of Iraq.
Saudi Arabia's benchmark index (.TASI) added 0.4%, its fifth consecutive rise, led by a 1.1% gain in Al Rajhi Bank (1120.SE).
The kingdom removed the United Arab Emirates, Argentina and South Africa from its entry banned country list and re-allowed citizens to travel to the three countries starting Sept. 8. read more
Tourism Enterprises Co (4170.SE) climbed 5.1%.
Dubai's main share index (.DFMGI) eased 0.1%, hit by a 1% decline in blue-chip developer Emaar Properties (EMAR.DU), extending losses from the previous session.
The index's losses, although, were capped by gains at Mashreq Bank (MASB.DU), which surged more than 10%, a day after it announced inauguration of its representative office in Shanghai amid a strategic push to expand its presence in China.
However, investors are optimistic about the increasing strategic cooperation between the UAE and Saudi Arabia and from the Saudi travel ban lift as the Dubai Expo draws nearer, which would aid the stock market in the long run, said Makarem.
In Qatar, the index (.QSI) added 0.1%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) ended 0.4% higher, with Fawry for Banking Technology and Electronic (FWRY.CA) leading the gains.
In Egypt, the stock market received some support as the government announced its plans to consider IPOs of public companies by the end of the year, Makarem added.
#AbuDhabi wealth fund’s returns surged in 2020 despite COVID | Markets – Gulf News
Abu Dhabi wealth fund’s returns surged in 2020 despite COVID | Markets – Gulf News
Abu Dhabi Investment Authority (ADIA), the UAE’s biggest sovereign wealth fund achieved stronger rates of return despite the COVID-19 crisis impacting the global economy according to its 2020 annual review.
While the COVID crisis impacted all aspects of life across the world, ADIA said it remained focused on its mission.
ADIA’s investments in private equity and Infrastructure have grown over a number of years and this has led to increases in the allocation bands for both asset classes:
“This trade-off is at the centre of ADIA’s investment strategy, and we were able to efficiently navigate market turmoil to position ourselves for the rebound,” Sheikh Hamed said.
Abu Dhabi Investment Authority (ADIA), the UAE’s biggest sovereign wealth fund achieved stronger rates of return despite the COVID-19 crisis impacting the global economy according to its 2020 annual review.
While the COVID crisis impacted all aspects of life across the world, ADIA said it remained focused on its mission.
ADIA’s investments in private equity and Infrastructure have grown over a number of years and this has led to increases in the allocation bands for both asset classes:
- Private equity has increased from 2 per cent - 8 per cent band to 5 per cent – 10 per cent band
- Infrastructure has increased from 1 per cent – 5 per cent range to 2 per cent –7 per cent
- On a geographical basis, the band for Developed Asia has reduced from 10 per cent –20 per cent to 5 per cent – 15 per cent
“This trade-off is at the centre of ADIA’s investment strategy, and we were able to efficiently navigate market turmoil to position ourselves for the rebound,” Sheikh Hamed said.
#UAE's Dana Gas secures U.S. agency funding for Iraqi Kurdistan project | Reuters
UAE's Dana Gas secures U.S. agency funding for Iraqi Kurdistan project | Reuters
United Arab Emirates energy firm Dana Gas (DANA.AD) said on Wednesday a consortium it co-leads had secured $250 million in financing from the U.S. development agency to fund an expansion of gas production at the Khor Mor plant in Iraqi Kurdistan.
Pearl Petroleum, a consortium co-led with UAE's Crescent Petroleum, secured the 7-year financing from the International Development Finance Corp (DFC), Dana said in a statement.
It is the biggest ever financing by the U.S. development agency in Iraq.
Expansion of the Khor Mor gas plant was halted last year due to the COVID-19 pandemic and is now expected to be completed in April 2023 after construction resumed in April this year.
Dana said the total expansion cost was $630 million.
Under an agreement with Iraq's Kurdistan Regional Government, Pearl Petroleum is to supply natural gas to local power stations.
Developing gas fields in Kurdistan to power local industries would help the region save on fuel costs while also cutting carbon emissions.
The central Iraqi government has also been seeking to speed up development of its gas industry to reduce reliance of gas from neighbouring Iran.
United Arab Emirates energy firm Dana Gas (DANA.AD) said on Wednesday a consortium it co-leads had secured $250 million in financing from the U.S. development agency to fund an expansion of gas production at the Khor Mor plant in Iraqi Kurdistan.
Pearl Petroleum, a consortium co-led with UAE's Crescent Petroleum, secured the 7-year financing from the International Development Finance Corp (DFC), Dana said in a statement.
It is the biggest ever financing by the U.S. development agency in Iraq.
Expansion of the Khor Mor gas plant was halted last year due to the COVID-19 pandemic and is now expected to be completed in April 2023 after construction resumed in April this year.
Dana said the total expansion cost was $630 million.
Under an agreement with Iraq's Kurdistan Regional Government, Pearl Petroleum is to supply natural gas to local power stations.
Developing gas fields in Kurdistan to power local industries would help the region save on fuel costs while also cutting carbon emissions.
The central Iraqi government has also been seeking to speed up development of its gas industry to reduce reliance of gas from neighbouring Iran.
#AbuDhabi wealth fund to focus on tech, climate change after COVID-19 | Reuters
Abu Dhabi wealth fund to focus on tech, climate change after COVID-19 | Reuters
Abu Dhabi Investment Authority (ADIA), the United Arab Emirates' biggest sovereign wealth fund, sees technology and climate change as key investment areas for its post-COVID-19 strategy, it said in its 2020 annual review.
ADIA, which manages capital on behalf of the oil-rich Abu Dhabi government, does not disclose the value of its assets but the Sovereign Wealth Fund Institute, a research group, estimates them at $649 billion.
As of the end of last year ADIA achieved 20-year and 30-year annualised rates of return of 6% and 7.2% respectively, compared with 4.8% and 6.6% in 2019, it said in its report, published on Wednesday.
"As with any great shock to the status quo, the pandemic has also acted as a catalyst to accelerate a number of important themes in global financial markets," Managing Director Hamed bin Zayed al-Nahyan said in the report.
Major areas of focus for the fund include technology, healthcare, renewable energy, and real estate sub-sectors such as logistics and data centres.
ADIA increased its exposure to renewable energy and through its infrastructure investments it now has an indirect interest in assets with a renewable capacity of more than 20 gigawatts.
On the equities side, its Indexed Fund Department introduced a climate change portfolio last year.
In 2020 ADIA combined previously separate external and internal equities departments, one tasked with overseeing the activities of external managers and the other with managing multiple internal portfolios.
It also created a team - for which it plans to hire more people - tasked with implementing investment strategies using a quantitative, scientific approach, it said.
Abu Dhabi Investment Authority (ADIA), the United Arab Emirates' biggest sovereign wealth fund, sees technology and climate change as key investment areas for its post-COVID-19 strategy, it said in its 2020 annual review.
ADIA, which manages capital on behalf of the oil-rich Abu Dhabi government, does not disclose the value of its assets but the Sovereign Wealth Fund Institute, a research group, estimates them at $649 billion.
As of the end of last year ADIA achieved 20-year and 30-year annualised rates of return of 6% and 7.2% respectively, compared with 4.8% and 6.6% in 2019, it said in its report, published on Wednesday.
"As with any great shock to the status quo, the pandemic has also acted as a catalyst to accelerate a number of important themes in global financial markets," Managing Director Hamed bin Zayed al-Nahyan said in the report.
Major areas of focus for the fund include technology, healthcare, renewable energy, and real estate sub-sectors such as logistics and data centres.
ADIA increased its exposure to renewable energy and through its infrastructure investments it now has an indirect interest in assets with a renewable capacity of more than 20 gigawatts.
On the equities side, its Indexed Fund Department introduced a climate change portfolio last year.
In 2020 ADIA combined previously separate external and internal equities departments, one tasked with overseeing the activities of external managers and the other with managing multiple internal portfolios.
It also created a team - for which it plans to hire more people - tasked with implementing investment strategies using a quantitative, scientific approach, it said.
U.S. driller Helmerich & Payne to invest in ADNOC Drilling IPO | Reuters
U.S. driller Helmerich & Payne to invest in ADNOC Drilling IPO | Reuters
U.S. contract oil and gas driller Helmerich & Payne (H&P) (HP.N) will invest $100 million in the initial public offering (IPO) of Abu Dhabi National Oil Company's drilling unit, the companies said in a joint statement.
The cornerstone investment by H&P will be at the IPO price and is subject to a three-year lock-up, ADNOC and H&P said in the statement.
The deal is part of a strategic alliance, the companies said, that will also see ADNOC Drilling acquire eight land rigs from H&P for $86.5 million.
ADNOC, which supplies nearly 3% of global oil demand, earlier this week announced its intention to offer a 7.5% minority stake in ADNOC Drilling through an IPO and subsequent listing on the Abu Dhabi Securities Exchange. read more
Investment bank Moelis & Co (MC.N) acted as exclusive financial advisor to ADNOC, while Morgan Stanley & Co. LLC (MNDX.UL) acted as exclusive financial advisor to H&P.
U.S. contract oil and gas driller Helmerich & Payne (H&P) (HP.N) will invest $100 million in the initial public offering (IPO) of Abu Dhabi National Oil Company's drilling unit, the companies said in a joint statement.
The cornerstone investment by H&P will be at the IPO price and is subject to a three-year lock-up, ADNOC and H&P said in the statement.
The deal is part of a strategic alliance, the companies said, that will also see ADNOC Drilling acquire eight land rigs from H&P for $86.5 million.
ADNOC, which supplies nearly 3% of global oil demand, earlier this week announced its intention to offer a 7.5% minority stake in ADNOC Drilling through an IPO and subsequent listing on the Abu Dhabi Securities Exchange. read more
Investment bank Moelis & Co (MC.N) acted as exclusive financial advisor to ADNOC, while Morgan Stanley & Co. LLC (MNDX.UL) acted as exclusive financial advisor to H&P.
Oil climbs on slow U.S. supply return after Hurricane Ida | Reuters
Oil climbs on slow U.S. supply return after Hurricane Ida | Reuters
Oil prices rose on Wednesday as U.S. Gulf of Mexico producers made slow progress in rebuilding output, although gains were capped by a stronger dollar and concerns about the impact on demand of rising coronavirus infections.
Brent was up 60 cents, or 0.8%, at $72.29 a barrel, at 1002 GMT, and U.S. West Texas Intermediate (WTI) crude rose 70 cents, or 1%, to $69.05 a barrel.
"Oil prices are continuing to find support from the ongoing high production outages in the Gulf of Mexico," said Commerzbank analyst Carsten Fritsch.
Producers in the Gulf are still struggling to restart operations nine days after Hurricane Ida swept through the region with powerful winds and drenching rain.
Oil prices rose on Wednesday as U.S. Gulf of Mexico producers made slow progress in rebuilding output, although gains were capped by a stronger dollar and concerns about the impact on demand of rising coronavirus infections.
Brent was up 60 cents, or 0.8%, at $72.29 a barrel, at 1002 GMT, and U.S. West Texas Intermediate (WTI) crude rose 70 cents, or 1%, to $69.05 a barrel.
"Oil prices are continuing to find support from the ongoing high production outages in the Gulf of Mexico," said Commerzbank analyst Carsten Fritsch.
Producers in the Gulf are still struggling to restart operations nine days after Hurricane Ida swept through the region with powerful winds and drenching rain.
#AbuDhabi Offers Second Dollar Bond for 2021 Amid Low Yields - Bloomberg
Abu Dhabi Offers Second Dollar Bond for 2021 Amid Low Yields - Bloomberg
Abu Dhabi is returning to international debt markets for the second time this year with a two-part dollar-denominated offering to take advantage of low borrowing costs.
The oil-rich capital of the United Arab Emirates is selling debt maturing in 10 years, with an initial price talk of about 90 basis points over Treasuries of similar maturity, according to a person familiar with the matter. It’s also offering 30-year securities with an initial spread of 130 basis points. The bonds may price on Wednesday.
Dovish comments from Federal Reserve Chair Jerome Powell have stoked demand for risky assets, while disappointing U.S. jobs data has dimmed the odds that the central bank will speed up the rollback of its massive bond-buying program, keeping a lid on borrowing costs. The yield on Abu Dhabi’s bond due 2028, which the emirate sold in May, is trading near its all-time low of 1.56% reached at the end of August.
The wealthiest of the seven sheikhdoms that make up the UAE, Abu Dhabi has the third-highest debt ratings of AA and Aa2 from S&P Global Ratings and Moody’s Investors Service, respectively.
The UAE is the third-biggest producer in the Organization of Petroleum Exporting Countries, and Brent crude has averaged about $67 a barrel this year, up about 30% from end-December.
The recovery in oil prices is set to help narrow the government’s fiscal gap to an average of 3.4% of gross domestic product between 2021 and 2023, almost half the size of last year’s estimated deficit, according to Moody’s.
BNP Paribas, First Abu Dhabi Bank, JPMorgan, Morgan Stanley and Standard Chartered are the bookrunners for the offering.
Abu Dhabi is returning to international debt markets for the second time this year with a two-part dollar-denominated offering to take advantage of low borrowing costs.
The oil-rich capital of the United Arab Emirates is selling debt maturing in 10 years, with an initial price talk of about 90 basis points over Treasuries of similar maturity, according to a person familiar with the matter. It’s also offering 30-year securities with an initial spread of 130 basis points. The bonds may price on Wednesday.
Dovish comments from Federal Reserve Chair Jerome Powell have stoked demand for risky assets, while disappointing U.S. jobs data has dimmed the odds that the central bank will speed up the rollback of its massive bond-buying program, keeping a lid on borrowing costs. The yield on Abu Dhabi’s bond due 2028, which the emirate sold in May, is trading near its all-time low of 1.56% reached at the end of August.
The wealthiest of the seven sheikhdoms that make up the UAE, Abu Dhabi has the third-highest debt ratings of AA and Aa2 from S&P Global Ratings and Moody’s Investors Service, respectively.
The UAE is the third-biggest producer in the Organization of Petroleum Exporting Countries, and Brent crude has averaged about $67 a barrel this year, up about 30% from end-December.
The recovery in oil prices is set to help narrow the government’s fiscal gap to an average of 3.4% of gross domestic product between 2021 and 2023, almost half the size of last year’s estimated deficit, according to Moody’s.
BNP Paribas, First Abu Dhabi Bank, JPMorgan, Morgan Stanley and Standard Chartered are the bookrunners for the offering.
Biggest #AbuDhabi Wealth Fund Expands Foray Into Private Markets - Bloomberg
Biggest Abu Dhabi Wealth Fund Expands Foray Into Private Markets - Bloomberg
The Abu Dhabi Investment Authority is giving itself more room to invest in private markets after a record year of dealmaking for its buyout division during the pandemic.
The emirate’s biggest sovereign wealth fund, which oversees assets estimated at $686 billion, has raised its target allocation range for private equity and infrastructure, according to its 2020 annual review released on Wednesday.
The fund’s private equity department committed more capital than ever before last year with 24 investments, up from 18 in 2019. Direct investments and co-investments represented 55% of its overall deployment for 2020, up from 45% in 2019, with the balance committed to funds.
“ADIA’s investments in private equity and infrastructure have grown over a number of years and this has led to increases in the allocation bands for both asset classes,” said the fund’s managing director, Hamed bin Zayed Al Nahyan.
The promise of higher returns at a time of extra low interest rates is prompting the $10 trillion wealth fund industry to shift more capital into private markets that tend to be less liquid but offer steady cash flows for decades.
The Abu Dhabi Investment Authority is giving itself more room to invest in private markets after a record year of dealmaking for its buyout division during the pandemic.
The emirate’s biggest sovereign wealth fund, which oversees assets estimated at $686 billion, has raised its target allocation range for private equity and infrastructure, according to its 2020 annual review released on Wednesday.
The fund’s private equity department committed more capital than ever before last year with 24 investments, up from 18 in 2019. Direct investments and co-investments represented 55% of its overall deployment for 2020, up from 45% in 2019, with the balance committed to funds.
“ADIA’s investments in private equity and infrastructure have grown over a number of years and this has led to increases in the allocation bands for both asset classes,” said the fund’s managing director, Hamed bin Zayed Al Nahyan.
The promise of higher returns at a time of extra low interest rates is prompting the $10 trillion wealth fund industry to shift more capital into private markets that tend to be less liquid but offer steady cash flows for decades.
#Saudi Electricity raises nearly $2.6 bln with revolving loan | Reuters
Saudi Electricity raises nearly $2.6 bln with revolving loan | Reuters
State-controlled Saudi Electricity Company (SEC) (5110.SE), the kingdom's electric transmission monopoly, said on Wednesday it had secured a $2.58 billion loan to refinance existing debt and for general corporate purposes.
The revolving credit facility has a three-year duration and was provided by a group of 11 banks, the company said in a bourse filing.
A revolving loan is one that can be drawn, repaid and drawn again during the agreed lending period.
State-controlled Saudi Electricity Company (SEC) (5110.SE), the kingdom's electric transmission monopoly, said on Wednesday it had secured a $2.58 billion loan to refinance existing debt and for general corporate purposes.
The revolving credit facility has a three-year duration and was provided by a group of 11 banks, the company said in a bourse filing.
A revolving loan is one that can be drawn, repaid and drawn again during the agreed lending period.
Oil climbs on slow return of U.S. supply after Hurricane Ida | Reuters
Oil climbs on slow return of U.S. supply after Hurricane Ida | Reuters
Oil prices climbed on Wednesday, recouping some overnight losses from a stronger dollar and demand concerns, with a slow production restart in the U.S. Gulf of Mexico and resumption of refining activities providing support.
U.S. West Texas Intermediate (WTI) crude futures rose 43 cents, or 0.6%, to $68.78 a barrel at 0643 GMT, after sliding 1.4% on Tuesday following the Labor Day holiday.
Brent crude futures gained 34 cents, or 0.5%, at $72.03 a barrel after falling 0.7% on Tuesday.
"The market is ... weighing up the impact of ongoing delays to the resumption of operations in the Gulf of Mexico," ANZ Research analysts said in a note.
Producers in the Gulf are still struggling to restart operations nine days after Hurricane Ida swept through the region with powerful winds and drenching rain.
Oil prices climbed on Wednesday, recouping some overnight losses from a stronger dollar and demand concerns, with a slow production restart in the U.S. Gulf of Mexico and resumption of refining activities providing support.
U.S. West Texas Intermediate (WTI) crude futures rose 43 cents, or 0.6%, to $68.78 a barrel at 0643 GMT, after sliding 1.4% on Tuesday following the Labor Day holiday.
Brent crude futures gained 34 cents, or 0.5%, at $72.03 a barrel after falling 0.7% on Tuesday.
"The market is ... weighing up the impact of ongoing delays to the resumption of operations in the Gulf of Mexico," ANZ Research analysts said in a note.
Producers in the Gulf are still struggling to restart operations nine days after Hurricane Ida swept through the region with powerful winds and drenching rain.
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