Oil edges lower on profit-taking, rate hike worries | Reuters
Oil prices edged lower on Thursday as investors took profits after two days of gains amid fears of aggressive U.S. interest rate hikes, but the losses were cushioned by expectations of a strong economic recovery that will boost demand in a tightly supplied market.
U.S. West Texas Intermediate (WTI) crude futures settled down 52 cents, or 0.6%, at $82.12 a barrel, after rising 5.6% over the last two days.
Brent crude futures fell 20 cents, or 0.2%, to $84.47 a barrel. It had gained 4.7% over Tuesday and Wednesday.
The Federal Reserve may need to raise rates four times in 2022 if inflation doesn't improve quickly enough, Chicago Federal Reserve president Charles Evans said on Thursday, adding that because inflation has stayed high longer, the Fed has to take action quicker than expected.
Thursday, 13 January 2022
Aramco Oil Pipelines investors expected to raise roughly half targeted amount with bonds | Reuters
Aramco Oil Pipelines investors expected to raise roughly half targeted amount with bonds | Reuters
A group of institutional investors that last year took a stake in Saudi Aramco's oil pipelines network is expected to raise between $2 billion and $2.5 billion via a sale of dual-tranche amortising bonds for which final spreads was unchanged from initial guidance, a bank document showed on Thursday.
A separate bank document earlier showed that the investors, through EIG Pearl Holdings, were seeking to raise between $3.5 billion and $4.4 billion. The bonds received more than $4.9 billion in orders, the latest bank document showed roughly 15 minutes before books were due to close at 1715 GMT.
Final spreads were set at 185 basis points (bps) over U.S. Treasuries (UST) for a tranche maturing in 14-1/2 to 15 years, and 235 bps over UST for paper maturing in 24-1/2 to 25 years, both unchanged from initial price guidance, documents from one of the banks on the deal showed.
The tranches will have a weighted average life of 10.2 to 10.7 years and between 23-1/2 and 24 years, respectively.
A group of institutional investors that last year took a stake in Saudi Aramco's oil pipelines network is expected to raise between $2 billion and $2.5 billion via a sale of dual-tranche amortising bonds for which final spreads was unchanged from initial guidance, a bank document showed on Thursday.
A separate bank document earlier showed that the investors, through EIG Pearl Holdings, were seeking to raise between $3.5 billion and $4.4 billion. The bonds received more than $4.9 billion in orders, the latest bank document showed roughly 15 minutes before books were due to close at 1715 GMT.
Final spreads were set at 185 basis points (bps) over U.S. Treasuries (UST) for a tranche maturing in 14-1/2 to 15 years, and 235 bps over UST for paper maturing in 24-1/2 to 25 years, both unchanged from initial price guidance, documents from one of the banks on the deal showed.
The tranches will have a weighted average life of 10.2 to 10.7 years and between 23-1/2 and 24 years, respectively.
Oil holds near $85/bbl on stronger demand prospects | Reuters
Oil holds near $85/bbl on stronger demand prospects | Reuters
Oil prices were little changed on Thursday, with Brent crude trading near $85 a barrel, buoyed by expectations that a strong economic recovery will boost demand, but prices were pressured by rising U.S. inventories and fears of aggressive U.S. interest rate hikes.
Brent crude futures fell 18 cents, or 0.2%, to $84.52 a barrel, by 1133 a.m. ET (1634 GMT). It had gained 4.7% over Tuesday and Wednesday.
U.S. West Texas Intermediate (WTI) crude futures were down 16 cents, or 0.2, to $82.48 a barrel, after rising 5.6% over the last 2 days.
"The U.S producer price inflation data came in easily as hot as the last month and could put pressure on the Fed to rein in the economy, potentially being a drag on crude prices and supporting the dollar," said John Kilduff, a partner at Again Capital Management in New York, calling them "modestly worrisome factors."
Oil prices were little changed on Thursday, with Brent crude trading near $85 a barrel, buoyed by expectations that a strong economic recovery will boost demand, but prices were pressured by rising U.S. inventories and fears of aggressive U.S. interest rate hikes.
Brent crude futures fell 18 cents, or 0.2%, to $84.52 a barrel, by 1133 a.m. ET (1634 GMT). It had gained 4.7% over Tuesday and Wednesday.
U.S. West Texas Intermediate (WTI) crude futures were down 16 cents, or 0.2, to $82.48 a barrel, after rising 5.6% over the last 2 days.
"The U.S producer price inflation data came in easily as hot as the last month and could put pressure on the Fed to rein in the economy, potentially being a drag on crude prices and supporting the dollar," said John Kilduff, a partner at Again Capital Management in New York, calling them "modestly worrisome factors."
#AbuDhabi solar firm Sweihan takes orders for green bonds | Reuters
Abu Dhabi solar firm Sweihan takes orders for green bonds | Reuters
Abu Dhabi solar energy firm Sweihan PV Power Company gave initial price guidance of around 3.875% for amortising green bonds, through which it aims to raise around $728 million, a bank document showed on Thursday.
Investors will receive semi-annual payments starting July 31 and the bonds, which will fund spending linked to the Noor Abu Dhabi solar plant, will likely have a weighted average life of 15 years, a document from one of the banks showed.
Citi (C.N) is lead global coordinator on the debt issue, expected to launch on Thursday, while HSBC (HSBA.L) and MUFG (8306.T) join it as joint global coordinators.
BNP Paribas (BNPP.PA), First Abu Dhabi Bank (FAB.AD) and SMBC Nikko (8316.T) are joint lead managers and bookrunners. read more
Abu Dhabi solar energy firm Sweihan PV Power Company gave initial price guidance of around 3.875% for amortising green bonds, through which it aims to raise around $728 million, a bank document showed on Thursday.
Investors will receive semi-annual payments starting July 31 and the bonds, which will fund spending linked to the Noor Abu Dhabi solar plant, will likely have a weighted average life of 15 years, a document from one of the banks showed.
Citi (C.N) is lead global coordinator on the debt issue, expected to launch on Thursday, while HSBC (HSBA.L) and MUFG (8306.T) join it as joint global coordinators.
BNP Paribas (BNPP.PA), First Abu Dhabi Bank (FAB.AD) and SMBC Nikko (8316.T) are joint lead managers and bookrunners. read more
Brazil's BRF, #Saudi fund set up poultry joint venture | Reuters
Brazil's BRF, Saudi fund set up poultry joint venture | Reuters
Brazilian chicken and pork processor BRF SA (BRFS3.SA) signed a memorandum of understanding with Saudi Arabia's sovereign fund to create a joint venture to make poultry products in the Middle Eastern country, it said on Thursday.
BRF said in a securities filing it will hold a 70% stake in the joint venture, while Saudi Arabia's Public Investment Fund, known as PIF, will have the remaining 30%. Shares rose by 3.2% to 24.60 reais on the news.
The MOU is non-binding and aims to create a company that will produce and sell fresh, frozen and processed poultry products. BRF refused to provide additional details about the move as it is in a quiet period ahead of a shareholder vote on Monday to decide on a follow-on share offering. read more
The Brazilian company said the joint venture will require a $350 million investment if it materializes.
Brazilian chicken and pork processor BRF SA (BRFS3.SA) signed a memorandum of understanding with Saudi Arabia's sovereign fund to create a joint venture to make poultry products in the Middle Eastern country, it said on Thursday.
BRF said in a securities filing it will hold a 70% stake in the joint venture, while Saudi Arabia's Public Investment Fund, known as PIF, will have the remaining 30%. Shares rose by 3.2% to 24.60 reais on the news.
The MOU is non-binding and aims to create a company that will produce and sell fresh, frozen and processed poultry products. BRF refused to provide additional details about the move as it is in a quiet period ahead of a shareholder vote on Monday to decide on a follow-on share offering. read more
The Brazilian company said the joint venture will require a $350 million investment if it materializes.
#Saudi index at highest in over 15 years; blue-chip selloff hits Egypt | Reuters
Saudi index at highest in over 15 years; blue-chip selloff hits Egypt | Reuters
Most stock markets in the Gulf ended higher on Thursday, with the Saudi index reaching its highest level since mid-2006, while the Egyptian bourse retreated due to a selloff in blue-chips.
Saudi Arabia's benchmark index (.TASI) advanced 1%, buoyed by a 5.4% rise in Riyad Bank (1010.SE) and a 1.5% increase in Saudi National Bank (1180.SE).
The Saudi market was supported by the high price levels in oil markets, according to Farah Mourad, Senior Market Analyst of XTB MENA.
"Additionally, the market could see strong support this year as the Saudi wealth fund is planning to invest $10 billion into local equities," Mourad said.
Separately, the kingdom is planning to auction up to three mining licences in 2022, including Khnaiguiyah mines where zinc and copper deposits are estimated at around 26 million tonnes, the kingdom's mining minister said on Wednesday. read more
In Abu Dhabi, the index (.ADI) added 0.7%, led by a 1.8% gain in the country's largest lender First Abu Dhabi Bank (FAB.AD).
Dubai's main share index (.DFMGI) firmed 0.2%, helped by a 1.1% rise in Emirates NBD Bank (ENBD.DU).
Crude prices, a key catalyst for the Gulf's financial markets, steadied near 2-month highs with Brent crude trading near $85 a barrel buoyed by expectations that a strong economic recovery will boost demand.
However, a rise in U.S. inventories and high inflation capped gains.
The Qatari index (.QSI) climbed 1.3%, as most of the stocks on the index were in positive territory including Qatar Islamic Bank (QISB.QA), which was up 2.7%.
Qatar's economy grew 2.6% year-on-year in the third quarter of 2021, according to official estimates, driven mainly by the non-hydrocarbon sector. read more
Outside the Gulf, Egypt's blue-chip index (.EGX30) fell 0.4%, hit by a 2.2% fall in investment bank EFG Hermes (HRHO.CA).
The Egyptian stock market fell today after it recorded some important increases during the last few weeks as investors move to secure their gains. Overall, the market could see some price corrections but remains on positive footing, said Mourad.
Most stock markets in the Gulf ended higher on Thursday, with the Saudi index reaching its highest level since mid-2006, while the Egyptian bourse retreated due to a selloff in blue-chips.
Saudi Arabia's benchmark index (.TASI) advanced 1%, buoyed by a 5.4% rise in Riyad Bank (1010.SE) and a 1.5% increase in Saudi National Bank (1180.SE).
The Saudi market was supported by the high price levels in oil markets, according to Farah Mourad, Senior Market Analyst of XTB MENA.
"Additionally, the market could see strong support this year as the Saudi wealth fund is planning to invest $10 billion into local equities," Mourad said.
Separately, the kingdom is planning to auction up to three mining licences in 2022, including Khnaiguiyah mines where zinc and copper deposits are estimated at around 26 million tonnes, the kingdom's mining minister said on Wednesday. read more
In Abu Dhabi, the index (.ADI) added 0.7%, led by a 1.8% gain in the country's largest lender First Abu Dhabi Bank (FAB.AD).
Dubai's main share index (.DFMGI) firmed 0.2%, helped by a 1.1% rise in Emirates NBD Bank (ENBD.DU).
Crude prices, a key catalyst for the Gulf's financial markets, steadied near 2-month highs with Brent crude trading near $85 a barrel buoyed by expectations that a strong economic recovery will boost demand.
However, a rise in U.S. inventories and high inflation capped gains.
The Qatari index (.QSI) climbed 1.3%, as most of the stocks on the index were in positive territory including Qatar Islamic Bank (QISB.QA), which was up 2.7%.
Qatar's economy grew 2.6% year-on-year in the third quarter of 2021, according to official estimates, driven mainly by the non-hydrocarbon sector. read more
Outside the Gulf, Egypt's blue-chip index (.EGX30) fell 0.4%, hit by a 2.2% fall in investment bank EFG Hermes (HRHO.CA).
The Egyptian stock market fell today after it recorded some important increases during the last few weeks as investors move to secure their gains. Overall, the market could see some price corrections but remains on positive footing, said Mourad.
#SaudiArabia Seeks $170 Billion of Mining Investment By 2030 - Bloomberg
Saudi Arabia Seeks $170 Billion of Mining Investment By 2030 - Bloomberg
Saudi Arabia wants to attract $170 billion of investment in its mining sector by the end of the decade, exploiting rising global demand for metals crucial to the energy transition.
“That’s a lot of money,” the Saudi mining minister, Bandar Alkhorayef, said in an interview with Bloomberg Television in Riyadh. Minerals are “becoming more and more essential for the advancement of manufacturing, energy” and industries including automotives.
The investment will come from foreign and local firms, including state miner Maaden. It should enable the sector’s contribution to gross domestic product to reach $64 billion annually by 2030, he said, more than four times today’s figure of $17 billion.
Mining is a crucial part of Crown Prince Mohammed bin Salman’s attempt to diversify the economy from oil. Still, development has been slow since the kingdom announced in 2018 that its minerals were probably worth $1.3 trillion.
Alkhorayef’s comments come as traders warn the world could run short of metals needed to build electric vehicles as well as solar- and wind-power plants. Prices of commodities such as copper, zinc and nickel have rallied significantly in recent weeks.
This quarter, Saudi Arabia may auction deposits of copper and zinc about 170 kilometers (106 miles) from Riyadh, Alkhorayef said. They contain an estimated 26 million tons of reserves, he said.
Maaden said last year it will invest a “huge amount” in battery metals.
Saudi Arabia wants to attract $170 billion of investment in its mining sector by the end of the decade, exploiting rising global demand for metals crucial to the energy transition.
“That’s a lot of money,” the Saudi mining minister, Bandar Alkhorayef, said in an interview with Bloomberg Television in Riyadh. Minerals are “becoming more and more essential for the advancement of manufacturing, energy” and industries including automotives.
The investment will come from foreign and local firms, including state miner Maaden. It should enable the sector’s contribution to gross domestic product to reach $64 billion annually by 2030, he said, more than four times today’s figure of $17 billion.
Mining is a crucial part of Crown Prince Mohammed bin Salman’s attempt to diversify the economy from oil. Still, development has been slow since the kingdom announced in 2018 that its minerals were probably worth $1.3 trillion.
Alkhorayef’s comments come as traders warn the world could run short of metals needed to build electric vehicles as well as solar- and wind-power plants. Prices of commodities such as copper, zinc and nickel have rallied significantly in recent weeks.
This quarter, Saudi Arabia may auction deposits of copper and zinc about 170 kilometers (106 miles) from Riyadh, Alkhorayef said. They contain an estimated 26 million tons of reserves, he said.
Maaden said last year it will invest a “huge amount” in battery metals.
#UAE Foreign Trade Minister: No Return to Lockdowns - Bloomberg video
UAE Foreign Trade Minister: No Return to Lockdowns - Bloomberg
Thani Al Zeyoudi, Minister of Foreign Trade for the UAE discusses Dubai's economic rebound during the pandemic, why he's optimistic about future trade ties with India and gives an update on the trade pact with Israel. He speaks with Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Kazakh govt recalls bill on $6 bln #UAE energy deal from parliament | Reuters
Kazakh govt recalls bill on $6 bln UAE energy deal from parliament | Reuters
Kazakhstan's government has recalled from parliament a bill on the ratification of a planned $6 billion renewable energy deal with the Abu Dhabi’s holding company ADQ and energy company Taqa (TAQA.AD), a document published on Wednesday showed.
Prime Minister Alikhan Smailov signed a decree recalling the bill on Monday, according to the official legal database, the first working day after a week of violent unrest that led to the previous cabinet's resignation.
The decree cited no reasons for the move. Some industry analysts have questioned the deal announced last month as it was not preceded by competitive bidding.
Under the planned deal, the UAE companies and Kazakhstan's sovereign fund were to set up a joint company that would receive stakes in two Kazakh hydroelectric power plants and build a solar power plant, a wind farm and a gas power plant in the former Soviet republic.
Kazakhstan's government has recalled from parliament a bill on the ratification of a planned $6 billion renewable energy deal with the Abu Dhabi’s holding company ADQ and energy company Taqa (TAQA.AD), a document published on Wednesday showed.
Prime Minister Alikhan Smailov signed a decree recalling the bill on Monday, according to the official legal database, the first working day after a week of violent unrest that led to the previous cabinet's resignation.
The decree cited no reasons for the move. Some industry analysts have questioned the deal announced last month as it was not preceded by competitive bidding.
Under the planned deal, the UAE companies and Kazakhstan's sovereign fund were to set up a joint company that would receive stakes in two Kazakh hydroelectric power plants and build a solar power plant, a wind farm and a gas power plant in the former Soviet republic.
Aramco oil pipelines investors expected to raise $3.5-4.4 bln via bonds | Reuters
Aramco oil pipelines investors expected to raise $3.5-4.4 bln via bonds | Reuters
A group of institutional investors that last year took a stake in Saudi Aramco's oil pipelines network is expected to raise between $3.5 billion and $4.4 billion via a sale of dual-tranche amortising bonds on Thursday, a bank document showed.
Initial price guidance was around 185 basis points (bps) over U.S. Treasuries (UST) for a tranche due in between 14-1/2 and 15 years and around 235 bps over UST for paper maturing in 24-1/2 to 25 years, the document from one of the banks on the deal showed.
The tranches will have a weighted average life of 10.2 to 10.7 years and between 23-1/2 and 24 years, respectively.
Citi (C.N) and JPMorgan (JPM.N) are coordinating the deal, which 18 other banks are also involved and is expected to launch later on Thursday. read more
It has hired Citi and JPMorgan to help refinance a loan that backed the deal, bank documents and an investor presentation showed on Monday.
A group of institutional investors that last year took a stake in Saudi Aramco's oil pipelines network is expected to raise between $3.5 billion and $4.4 billion via a sale of dual-tranche amortising bonds on Thursday, a bank document showed.
Initial price guidance was around 185 basis points (bps) over U.S. Treasuries (UST) for a tranche due in between 14-1/2 and 15 years and around 235 bps over UST for paper maturing in 24-1/2 to 25 years, the document from one of the banks on the deal showed.
The tranches will have a weighted average life of 10.2 to 10.7 years and between 23-1/2 and 24 years, respectively.
Citi (C.N) and JPMorgan (JPM.N) are coordinating the deal, which 18 other banks are also involved and is expected to launch later on Thursday. read more
It has hired Citi and JPMorgan to help refinance a loan that backed the deal, bank documents and an investor presentation showed on Monday.
Gas Crunch Pushes Anxious Buyers to Pay More for Contracts - Bloomberg
Gas Crunch Pushes Anxious Buyers to Pay More for Contracts - Bloomberg
Worries that the current shortage of liquefied natural gas will persist through the middle of the decade are triggering a rush to sign long-term deals, pushing up the price of contracts for the super-chilled fuel.
While contracts had been getting cheaper over the last few years due to rising supply from Qatar and end-users favoring the more affordable spot market, the anxiety spurred by the current supply crunch has reversed the trend. There’s a lack of uncontracted gas available through 2025, which is boosting oil-indexed agreements, according to consultancy Wood Mackenzie Ltd.
“2021 saw the return of contracting activity to its highest levels over the last five years,” Valery Chow, WoodMac’s head of Asia-Pacific gas and LNG research, said in a report released Thursday. “Asia accounted for 85% of global contracts signed, with China leading the pack.”
China’s Beijing Gas Group Co. recently signed a deal to buy LNG from a portfolio player at about 12.7% to 12.9% of the price of Brent crude. By comparison, Qatar was signing supply agreements to customers in Asia’s largest economy in the low-10% range early last year.
Worries that the current shortage of liquefied natural gas will persist through the middle of the decade are triggering a rush to sign long-term deals, pushing up the price of contracts for the super-chilled fuel.
While contracts had been getting cheaper over the last few years due to rising supply from Qatar and end-users favoring the more affordable spot market, the anxiety spurred by the current supply crunch has reversed the trend. There’s a lack of uncontracted gas available through 2025, which is boosting oil-indexed agreements, according to consultancy Wood Mackenzie Ltd.
“2021 saw the return of contracting activity to its highest levels over the last five years,” Valery Chow, WoodMac’s head of Asia-Pacific gas and LNG research, said in a report released Thursday. “Asia accounted for 85% of global contracts signed, with China leading the pack.”
China’s Beijing Gas Group Co. recently signed a deal to buy LNG from a portfolio player at about 12.7% to 12.9% of the price of Brent crude. By comparison, Qatar was signing supply agreements to customers in Asia’s largest economy in the low-10% range early last year.
Major Gulf bourses mixed in early trade | Reuters
Major Gulf bourses mixed in early trade | Reuters
Major stock markets in the Gulf were mixed in early trade on Thursday, in line with Asian shares as global investors assessed that strong U.S. inflation data was not worrying enough to change the Federal Reserve's already hawkish rates outlook.
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was 0.1% higher, after recording its biggest daily gain in a month on Wednesday.
Saudi Arabia's benchmark index (.TASI) gained 0.3%, at its highest in over 15 years, led by a 0.7% rise in its biggest lender Saudi National Bank (1180.SE).
The lender sold $750 million in debut "sustainable" sukuk on Wednesday after demand topped $3.2 billion, a bank document showed. read more
Separately, the kingdom is planning to auction up to three mining licences in 2022, including Khnaiguiyah mines where zinc and copper deposits are estimated at around 26 million tonnes, the kingdom's mining minister said on Wednesday. read more
The Qatari index (.QSI) added 0.4%, supported by a 2.1% gain in Qatar International Islamic Bank and a 0.6% increase in petrochemical maker Industries Qatar (IQCD.QA).
Qatar's economy grew 2.6% year-on-year in the third quarter of 2021, according to official estimates, driven mainly by the non-hydrocarbon sector. read more
In Abu Dhabi, the index (.ADI) fell 0.3%, hit by a 0.7% fall in the country's largest lender First Abu Dhabi Bank (FAB.AD).
However, Dana Gas (DANA.AD) rose 1%, extending gains from the previous session, after the energy firm and its partner Crescent Petroleum achieved 50% gas production growth in Kurdistan Region of Iraq over past 3 years.
Dubai's main share index (.DFMGI) dropped 0.5%, with Emirates NBD Bank (ENBD.DU) losing 1.1%.
Oil prices, a key catalyst for the Gulf's financial markets, slipped trimming big gains from the previous two sessions, amid uncertainty over near-term demand as cases of the highly contagious Omicron variant of the coronavirus surge around the globe.
Major stock markets in the Gulf were mixed in early trade on Thursday, in line with Asian shares as global investors assessed that strong U.S. inflation data was not worrying enough to change the Federal Reserve's already hawkish rates outlook.
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was 0.1% higher, after recording its biggest daily gain in a month on Wednesday.
Saudi Arabia's benchmark index (.TASI) gained 0.3%, at its highest in over 15 years, led by a 0.7% rise in its biggest lender Saudi National Bank (1180.SE).
The lender sold $750 million in debut "sustainable" sukuk on Wednesday after demand topped $3.2 billion, a bank document showed. read more
Separately, the kingdom is planning to auction up to three mining licences in 2022, including Khnaiguiyah mines where zinc and copper deposits are estimated at around 26 million tonnes, the kingdom's mining minister said on Wednesday. read more
The Qatari index (.QSI) added 0.4%, supported by a 2.1% gain in Qatar International Islamic Bank and a 0.6% increase in petrochemical maker Industries Qatar (IQCD.QA).
Qatar's economy grew 2.6% year-on-year in the third quarter of 2021, according to official estimates, driven mainly by the non-hydrocarbon sector. read more
In Abu Dhabi, the index (.ADI) fell 0.3%, hit by a 0.7% fall in the country's largest lender First Abu Dhabi Bank (FAB.AD).
However, Dana Gas (DANA.AD) rose 1%, extending gains from the previous session, after the energy firm and its partner Crescent Petroleum achieved 50% gas production growth in Kurdistan Region of Iraq over past 3 years.
Dubai's main share index (.DFMGI) dropped 0.5%, with Emirates NBD Bank (ENBD.DU) losing 1.1%.
Oil prices, a key catalyst for the Gulf's financial markets, slipped trimming big gains from the previous two sessions, amid uncertainty over near-term demand as cases of the highly contagious Omicron variant of the coronavirus surge around the globe.
Colombia's Grupo Gilinski to become 2nd-largest shareholder in Grupo SURA, Nutresa | Reuters
Colombia's Grupo Gilinski to become 2nd-largest shareholder in Grupo SURA, Nutresa | Reuters
Colombia's Grupo Gilinski is to become the second-largest shareholder in Grupo SURA and Nutresa (NCH.CN) after securing 25.42% and 27.69% of each company's shares respectively, the Colombian Stock Exchange said in two separate statements on Wednesday.
Both investment company Grupo SURA and Nutresa, Colombia's largest processed food producer, fall under the umbrella of Colombian conglomerate Grupo Empresarial Antioqueno (GEA), which controls more than 100 companies, including industrial conglomerate Grupo Argos, energy generator Celsia (CSA.CN) and bank Bancolombia (BIC.CN).
Many of the companies that make up GEA own significant stakes in one another.
Grupo Gilinski, via JGDB Holding SAS and with the financial backing of First Bank of Abu Dhabi, initially sought to buy between 25.344% and 31.68% of Grupo SURA's shares.
Grupo Gilinski, which offered $8.01 per Grupo SURA share, snatched up 118.9 million shares out of a total 467.9 million available shares in the acquisition, which closed on Tuesday, in a transaction that could exceed $952.5 million.
Colombia's Grupo Gilinski is to become the second-largest shareholder in Grupo SURA and Nutresa (NCH.CN) after securing 25.42% and 27.69% of each company's shares respectively, the Colombian Stock Exchange said in two separate statements on Wednesday.
Both investment company Grupo SURA and Nutresa, Colombia's largest processed food producer, fall under the umbrella of Colombian conglomerate Grupo Empresarial Antioqueno (GEA), which controls more than 100 companies, including industrial conglomerate Grupo Argos, energy generator Celsia (CSA.CN) and bank Bancolombia (BIC.CN).
Many of the companies that make up GEA own significant stakes in one another.
Grupo Gilinski, via JGDB Holding SAS and with the financial backing of First Bank of Abu Dhabi, initially sought to buy between 25.344% and 31.68% of Grupo SURA's shares.
Grupo Gilinski, which offered $8.01 per Grupo SURA share, snatched up 118.9 million shares out of a total 467.9 million available shares in the acquisition, which closed on Tuesday, in a transaction that could exceed $952.5 million.
Covid-19 News: #UAE Urges Return to Normal And Vows No Virus Lockdown - Bloomberg
Covid-19 News: UAE Urges Return to Normal And Vows No Virus Lockdown - Bloomberg
The United Arab Emirates does not intend to return to a full lockdown despite a rise in Covid-19 cases, and will focus on testing and vaccination to keep its economy open, its trade minister said.
European nations have tightened virus restrictions as infections rise and the omicron variant spreads. But the UAE has kept disruptions to a minimum, holding major conferences, concerts and events. Before the omicron strain emerged, the UAE had managed to keep cases under control for most of 2021, but new virus cases have risen to more than 2,500 a day in recent weeks.
“Omicron is way less impactful than the delta (variant) and even during delta we haven’t locked down the country. The balance has been there throughout the omicron for sure and with any future variants when it comes to corona, we will not go back to the full lockdown of the country,” Thani Al-Zeyoudi, the minister of state for foreign trade, said in an interview with Bloomberg TV.
In October, Middle East business hub Dubai launched its Expo 2020, one of the biggest in-person gatherings since the pandemic, betting on the six-month extravaganza to attract millions of visitors and boost an economy battered by years of low oil prices and the devastating impact of the pandemic on trade and travel.
The United Arab Emirates does not intend to return to a full lockdown despite a rise in Covid-19 cases, and will focus on testing and vaccination to keep its economy open, its trade minister said.
European nations have tightened virus restrictions as infections rise and the omicron variant spreads. But the UAE has kept disruptions to a minimum, holding major conferences, concerts and events. Before the omicron strain emerged, the UAE had managed to keep cases under control for most of 2021, but new virus cases have risen to more than 2,500 a day in recent weeks.
“Omicron is way less impactful than the delta (variant) and even during delta we haven’t locked down the country. The balance has been there throughout the omicron for sure and with any future variants when it comes to corona, we will not go back to the full lockdown of the country,” Thani Al-Zeyoudi, the minister of state for foreign trade, said in an interview with Bloomberg TV.
In October, Middle East business hub Dubai launched its Expo 2020, one of the biggest in-person gatherings since the pandemic, betting on the six-month extravaganza to attract millions of visitors and boost an economy battered by years of low oil prices and the devastating impact of the pandemic on trade and travel.
Digital Currency Race Prompts Trials, Scrutiny by Bank of #Israel - Bloomberg
Digital Currency Race Prompts Trials, Scrutiny by Bank of Israel - Bloomberg
The Bank of Israel, already used to testing the limits of monetary policy, is eager not to fall behind in crossing a new frontier for central banks.
Policy makers in Jerusalem are expanding their research into central bank digital currencies, or CBDCs, and sounding out stakeholders about risks and benefits, according to Yoav Soffer, head of the bank’s digital shekel project. But its roll-out still remains hypothetical given questions that range from the token’s cost to the impact on the banking system, Soffer said.
After running experiments using Ethereum, the central bank is planning further technical studies in the year ahead to assess the viability of different types of digital money, Soffer said in an interview. “Right now, we are increasing the resources devoted to the digital shekel project, both in terms of finances and people,” he said. “A digital shekel has great potential to increase competition and innovation within the payment industry.”
Analysts at Bank of America Corp. have argued that central banks will inevitably launch their digital coins to ward off the risk of losing monetary control in a world of decentralized cryptocurrencies and the potential for a widely adopted digital dollar.
The Bank of Israel, already used to testing the limits of monetary policy, is eager not to fall behind in crossing a new frontier for central banks.
Policy makers in Jerusalem are expanding their research into central bank digital currencies, or CBDCs, and sounding out stakeholders about risks and benefits, according to Yoav Soffer, head of the bank’s digital shekel project. But its roll-out still remains hypothetical given questions that range from the token’s cost to the impact on the banking system, Soffer said.
After running experiments using Ethereum, the central bank is planning further technical studies in the year ahead to assess the viability of different types of digital money, Soffer said in an interview. “Right now, we are increasing the resources devoted to the digital shekel project, both in terms of finances and people,” he said. “A digital shekel has great potential to increase competition and innovation within the payment industry.”
Analysts at Bank of America Corp. have argued that central banks will inevitably launch their digital coins to ward off the risk of losing monetary control in a world of decentralized cryptocurrencies and the potential for a widely adopted digital dollar.
#Dubai property deals more than doubled in 2021 amid economic recovery
Dubai property deals more than doubled in 2021 amid economic recovery
The value of property deals in Dubai more than doubled in 2021 and broke a 12-year record in terms of real estate sales transactions value, buoyed by demand in the secondary real estate market as the UAE economy recovers from the coronavirus pandemic.
The emirate registered 61,241 sales transactions worth Dh151.07 billion ($41.13bn) last year compared with Dh71.87bn worth of transactions it closed in 2020, making 2021 the best year for total transactions since 2013 and the highest in value since 2009, according to listings portal Property Finder. Total value of sales in 2009 was Dh155.6bn.
The sales transaction volumes in the fourth quarter were also 64.12 per cent higher when compared with same period in 2020 and the value of deals during the period surged 114.74 per cent to Dh46.75bn.
“Investor sentiment remains strong, demand is still very high and supply is dwindling,” Lynnette Sacchetto, director of research and data at Property Finder, said. “This has put an upward pressure on prices as they still continue to rise and will most likely continue into first half of 2022.”
The value of property deals in Dubai more than doubled in 2021 and broke a 12-year record in terms of real estate sales transactions value, buoyed by demand in the secondary real estate market as the UAE economy recovers from the coronavirus pandemic.
The emirate registered 61,241 sales transactions worth Dh151.07 billion ($41.13bn) last year compared with Dh71.87bn worth of transactions it closed in 2020, making 2021 the best year for total transactions since 2013 and the highest in value since 2009, according to listings portal Property Finder. Total value of sales in 2009 was Dh155.6bn.
The sales transaction volumes in the fourth quarter were also 64.12 per cent higher when compared with same period in 2020 and the value of deals during the period surged 114.74 per cent to Dh46.75bn.
“Investor sentiment remains strong, demand is still very high and supply is dwindling,” Lynnette Sacchetto, director of research and data at Property Finder, said. “This has put an upward pressure on prices as they still continue to rise and will most likely continue into first half of 2022.”
#AbuDhabi's Fertiglobe set to play 'big role' in global energy transition
Abu Dhabi's Fertiglobe set to play 'big role' in global energy transition
Fertiglobe, the Abu Dhabi-based chemicals joint venture of energy major Adnoc and Netherlands-listed OCI, is investing in several initiatives to produce low and zero-carbon ammonia to help the world reduce its carbon footprint, its chief executive said.
The company, the world’s top seaborne exporter of urea and ammonia, seeks to help existing and new clients looking to use hydrogen in the form of ammonia for marine fuels, power generation and other industrial applications, Ahmed El Hoshy told The National in an interview.
“We are going to play a very big role in the energy transition because there is a lot of discussion around hydrogen being a solution and its ability to provide energy,” said Mr El Hoshy, who is also chief executive of OCI.
“Today, hydrogen — for our purposes ammonia — can be used to decarbonise over 80 and potentially 90 per cent of global greenhouse gas emissions.”
Fertiglobe, the Abu Dhabi-based chemicals joint venture of energy major Adnoc and Netherlands-listed OCI, is investing in several initiatives to produce low and zero-carbon ammonia to help the world reduce its carbon footprint, its chief executive said.
The company, the world’s top seaborne exporter of urea and ammonia, seeks to help existing and new clients looking to use hydrogen in the form of ammonia for marine fuels, power generation and other industrial applications, Ahmed El Hoshy told The National in an interview.
“We are going to play a very big role in the energy transition because there is a lot of discussion around hydrogen being a solution and its ability to provide energy,” said Mr El Hoshy, who is also chief executive of OCI.
“Today, hydrogen — for our purposes ammonia — can be used to decarbonise over 80 and potentially 90 per cent of global greenhouse gas emissions.”
#Oman's Bank Muscat FY 2021 net profit 16% higher at $493mln | ZAWYA MENA Edition
Oman's Bank Muscat FY 2021 net profit 16% higher at $493mln | ZAWYA MENA Edition
Bank Muscat, Oman's largest lender by assets, on Wednesday reported a 16 percent jump in full-year 2021 net profit to 189.63 million Omani riyals ($493 million) on the back of higher operating income and lower impairment charges.
Net interest income from conventional banking and net income from Islamic financing was over 4 percent higher at 335.5 million rials compared with 322 million rials in the year-ago period.
Non-interest income was 140 million rials compared with 134.4 million for year ended December 31, 2020, the bank said in a statement on the Muscat Stock Exchange.
Impairment expenses for the year was 60.22 million rials for the current period, down from 81 million rials in FY-2020 due to higher provisioning due to the Covid-19 pandemic and a decline in oil prices.
Bank Muscat, Oman's largest lender by assets, on Wednesday reported a 16 percent jump in full-year 2021 net profit to 189.63 million Omani riyals ($493 million) on the back of higher operating income and lower impairment charges.
Net interest income from conventional banking and net income from Islamic financing was over 4 percent higher at 335.5 million rials compared with 322 million rials in the year-ago period.
Non-interest income was 140 million rials compared with 134.4 million for year ended December 31, 2020, the bank said in a statement on the Muscat Stock Exchange.
Impairment expenses for the year was 60.22 million rials for the current period, down from 81 million rials in FY-2020 due to higher provisioning due to the Covid-19 pandemic and a decline in oil prices.
#Saudi's Almarai completes acquisition of Bakemart's businesses in #UAE, Bahrain | ZAWYA MENA Edition
Saudi's Almarai completes acquisition of Bakemart's businesses in UAE, Bahrain | ZAWYA MENA Edition
Saudi Arabian food and beverage (F&B) giant Almarai has completed the acquisition of Bakemart’s businesses in the UAE and Bahrain in a deal valued at 93.5 million dirhams ($25.4 million).
The transaction to acquire 100 percent of the company was concluded on January 12, the Middle East’s largest dairy company said on Thursday in a disclosure to the Saudi Stock Exchange (Tadawul).
The company signed in March last year an agreement with Bakemart’s shareholders in UAE and Bahrain to acquire 100 percent of their shares.
Almarai made a net profit of 409.1 million riyals ($108.9 million) during the third quarter of 2021, down by 34 percent from a year earlier.
It had previously unveiled an investment programme that would see the dairy company invest 7.1 billion riyals from 2020 to 2024 to expand its product range.
Last November, it completed the acquisition of the production hub owned by Binghatti Beverages Manufacturing in the UAE for 215 million dirhams. Its board also approved in December a new investment plan to enter the branded local beef market, with an initial outlay of 250 million riyals.
Saudi Arabian food and beverage (F&B) giant Almarai has completed the acquisition of Bakemart’s businesses in the UAE and Bahrain in a deal valued at 93.5 million dirhams ($25.4 million).
The transaction to acquire 100 percent of the company was concluded on January 12, the Middle East’s largest dairy company said on Thursday in a disclosure to the Saudi Stock Exchange (Tadawul).
The company signed in March last year an agreement with Bakemart’s shareholders in UAE and Bahrain to acquire 100 percent of their shares.
Almarai made a net profit of 409.1 million riyals ($108.9 million) during the third quarter of 2021, down by 34 percent from a year earlier.
It had previously unveiled an investment programme that would see the dairy company invest 7.1 billion riyals from 2020 to 2024 to expand its product range.
Last November, it completed the acquisition of the production hub owned by Binghatti Beverages Manufacturing in the UAE for 215 million dirhams. Its board also approved in December a new investment plan to enter the branded local beef market, with an initial outlay of 250 million riyals.
#SaudiArabia Makes $200 Million Bet to Expand Golf in Asia - Bloomberg
Saudi Arabia Makes $200 Million Bet to Expand Golf in Asia - Bloomberg
When No. 3-ranked golfer Dustin Johnson tees off on Feb. 3 near Jeddah on Saudi Arabia’s west coast, he’ll be aiming to repeat as champion of the Saudi International—and take home the bulk of the $5 million purse.
But even if he successfully defends his title against stars such as Phil Mickelson and Bryson DeChambeau, the prize money won’t make him the biggest winner. That would be the Asian Tour itself. Saudi Arabia’s Public Investment Fund (PIF), one of the world’s largest sovereign wealth funds, announced a $200 million venture last fall called LIV Golf Investments to increase the popularity of the game outside the U.S. and Europe. Greg Norman, the former No. 1 golfer, is LIV’s chief executive officer.
The Saudi International kicks off a 10-year partnership between the Asian Tour—which puts on tournaments in countries such as India, China, Australia, Japan, and South Korea—and Golf Saudi, which organizes the Saudi International and whose partners include PIF. The revamped Asian Tour will have 10 new events after two years of pandemic-related disruptions.
When No. 3-ranked golfer Dustin Johnson tees off on Feb. 3 near Jeddah on Saudi Arabia’s west coast, he’ll be aiming to repeat as champion of the Saudi International—and take home the bulk of the $5 million purse.
But even if he successfully defends his title against stars such as Phil Mickelson and Bryson DeChambeau, the prize money won’t make him the biggest winner. That would be the Asian Tour itself. Saudi Arabia’s Public Investment Fund (PIF), one of the world’s largest sovereign wealth funds, announced a $200 million venture last fall called LIV Golf Investments to increase the popularity of the game outside the U.S. and Europe. Greg Norman, the former No. 1 golfer, is LIV’s chief executive officer.
The Saudi International kicks off a 10-year partnership between the Asian Tour—which puts on tournaments in countries such as India, China, Australia, Japan, and South Korea—and Golf Saudi, which organizes the Saudi International and whose partners include PIF. The revamped Asian Tour will have 10 new events after two years of pandemic-related disruptions.
#UAE Bets on Old Foe #Turkey as its New Trade Link to the World - Bloomberg
UAE Bets on Old Foe Turkey as its New Trade Link to the World - Bloomberg
The United Arab Emirates is looking to double or triple its trade volume with Turkey, capitalizing on its logistical ties with the rest of the world, in the latest sign of warming ties between the erstwhile rivals.
The UAE is “betting on Turkey as a country which is going to open up for us new markets through their logistics and through their supply chain,” Thani Al Zeyoudi, the minister of state for foreign trade, said in an interview with Bloomberg Television.
The UAE is looking to benefit from Turkey’s huge investments in the industrial sector, its skilled labor and existing logistical network, especially with Africa, Al Zeyoudi said. The government is also putting the finishing touches on trade agreements with India and Israel and expects a deal with the country to be unveiled in the next couple of months.
The Gulf oil exporter has been pushing to cement its position as a global hub for business and finance, particularly as it faces growing regional competition from regional heavyweight Saudi Arabia. Last year, the UAE announced plans to deepen its trade ties in fast-growing economies in Asia and Africa, and draw $150 billion in foreign investment.
The UAE also outlined plans in November to launch a $10 billion fund to support investments in Turkey in one of the highest-level visits in years between the old Middle East foes.
The United Arab Emirates is looking to double or triple its trade volume with Turkey, capitalizing on its logistical ties with the rest of the world, in the latest sign of warming ties between the erstwhile rivals.
The UAE is “betting on Turkey as a country which is going to open up for us new markets through their logistics and through their supply chain,” Thani Al Zeyoudi, the minister of state for foreign trade, said in an interview with Bloomberg Television.
The UAE is looking to benefit from Turkey’s huge investments in the industrial sector, its skilled labor and existing logistical network, especially with Africa, Al Zeyoudi said. The government is also putting the finishing touches on trade agreements with India and Israel and expects a deal with the country to be unveiled in the next couple of months.
The Gulf oil exporter has been pushing to cement its position as a global hub for business and finance, particularly as it faces growing regional competition from regional heavyweight Saudi Arabia. Last year, the UAE announced plans to deepen its trade ties in fast-growing economies in Asia and Africa, and draw $150 billion in foreign investment.
The UAE also outlined plans in November to launch a $10 billion fund to support investments in Turkey in one of the highest-level visits in years between the old Middle East foes.
Oil Swings After Tightening Market Spurs Robust New Year Rally - Bloomberg
Oil Swings After Tightening Market Spurs Robust New Year Rally - Bloomberg
| PRICES |
|---|
 Oil fluctuated as traders weighed the impact of the omicron wave on Asian demand, which blunted a new year rally powered by lower U.S. stockpiles, positive commentary from energy agencies, and supply glitches. West Texas Intermediate was 0.3% lower after closing Wednesday at the highest level since Nov. 9 on Wednesday. Still, since 2022 began, WTI has surged almost 10%, joining other commodities in a strong start to the year. |