UAE to raise $3 bln with two-tranche dollar bonds | Reuters
The United Arab Emirates was set to raise $3 billion with a two-tranche U.S. dollar-denominated bond sale comprising a 10-year tranche and 30-year Formosa portion, a bank document showed on Thursday.
The bonds, for which demand topped $13.5 billion, will offer investors 100 basis points over U.S. Treasuries (UST) for the 10-year paper and 175 bps over UST for the Formosa notes, according to the document from one of the banks on the deal, expected to price later on Thursday.
The 10-year tranche will be of $1.75 billion and the 30-year $1.25 billion.
The debt sale will be used for "budgetary purposes in compliance with the Public Debt Strategy and/or for the purpose of investment by the EIA pursuant to the Public Debt Strategy," another bank document said, referring to the UAE's federal sovereign wealth fund.
An investor presentation viewed by Reuters showed the UAE expects 56.7 billion dirhams in revenues in its 58.9 billion-dirham budget for 2022, leaving it with a 2.2 billion-dirham deficit to fill.
Thursday 23 June 2022
Oil prices slump as investors fear Fed rate hikes will hurt demand | Reuters
Oil prices slump as investors fear Fed rate hikes will hurt demand | Reuters
Oil prices dropped by nearly $2 a barrel on Thursday after another round of remarks from Federal Reserve Chair Jerome Powell fanned worries U.S. interest rate hikes wouldslow economic growth.
Brent crude futures settled at $110.05 a barrel, falling$1.69, or 1.5%. U.S. West Texas Intermediate (WTI) crude futures settled at $104.27 a barrel, down $1.92, or 1.8%.
Powell said the Fed's focus on curbing inflation was "unconditional" and the labor market was unsustainably strong, comments that stoked fears of more rate hikes.
Investors have been paring positions in risky assets as they assess whether inflation-fighting central banks could push the world economy into recession with higher interest rates. read more
"If the U.S., and the rest of the world goes into a recession, you can significantly impact demand," said Houston oil consultant Andrew Lipow.
Oil prices dropped by nearly $2 a barrel on Thursday after another round of remarks from Federal Reserve Chair Jerome Powell fanned worries U.S. interest rate hikes wouldslow economic growth.
Brent crude futures settled at $110.05 a barrel, falling$1.69, or 1.5%. U.S. West Texas Intermediate (WTI) crude futures settled at $104.27 a barrel, down $1.92, or 1.8%.
Powell said the Fed's focus on curbing inflation was "unconditional" and the labor market was unsustainably strong, comments that stoked fears of more rate hikes.
Investors have been paring positions in risky assets as they assess whether inflation-fighting central banks could push the world economy into recession with higher interest rates. read more
"If the U.S., and the rest of the world goes into a recession, you can significantly impact demand," said Houston oil consultant Andrew Lipow.
#Qatar shares suffer biggest weekly drop in two years on recession fears | Reuters
Qatar shares suffer biggest weekly drop in two years on recession fears | Reuters
Qatari shares led declines in the Gulf on Thursday to post their biggest weekly decline in more than two years, as investors worried that further rises in interest rates to quell decades-high inflation would tip economies into a recession.
U.S. Federal Reserve Chair Jerome Powell said on Wednesday the central bank was not trying to engineer a recession to stop inflation but was fully committed to bringing prices under control even if doing so risked an economic downturn. read more
A Reuters poll showed the Fed will deliver another 75-basis-point interest rate hike in July, followed by a half-percentage-point rise in September, and won't scale back to quarter-percentage-point moves until November at the earliest. read more
In Qatar, the benchmark index (.QSI) closed 1.6% lower, as stocks fell across board, with petrochemical maker Industries Qatar (IQCD.QA) sliding 4.4%.
The index posted a weekly loss of 6.4%, its biggest loss in a week since March 2020.
The Qatari stocks were volatile and could record more price corrections after a difficult week, said Eman AlAyyaf, chief executive officer of EA Trading.
"In this regard, investors' sentiment turned pessimistic and natural gas prices decreased."
Dubai's main share index (.DFMGI) retreated 1.1%, weighed down by a 1.9% decline in blue-chip developer Emaar Properties (EMAR.DU).
In Abu Dhabi, the equities (.FTFADGI) dropped 0.6%, hit by a 1.5% drop in telecoms firm e& (ETISALAT.AD).
Saudi Arabia's benchmark index (.TASI) eased 0.1% in a choppy trade, with Sahara International Petrochemical Company (2310.SE) losing 3.2%.
Outside the Gulf, Egypt's blue-chip index fell 1.8%.
According to AlAyyaf, the market remains strongly exposed to another bout of decreases as international investors sell.
Qatari shares led declines in the Gulf on Thursday to post their biggest weekly decline in more than two years, as investors worried that further rises in interest rates to quell decades-high inflation would tip economies into a recession.
U.S. Federal Reserve Chair Jerome Powell said on Wednesday the central bank was not trying to engineer a recession to stop inflation but was fully committed to bringing prices under control even if doing so risked an economic downturn. read more
A Reuters poll showed the Fed will deliver another 75-basis-point interest rate hike in July, followed by a half-percentage-point rise in September, and won't scale back to quarter-percentage-point moves until November at the earliest. read more
In Qatar, the benchmark index (.QSI) closed 1.6% lower, as stocks fell across board, with petrochemical maker Industries Qatar (IQCD.QA) sliding 4.4%.
The index posted a weekly loss of 6.4%, its biggest loss in a week since March 2020.
The Qatari stocks were volatile and could record more price corrections after a difficult week, said Eman AlAyyaf, chief executive officer of EA Trading.
"In this regard, investors' sentiment turned pessimistic and natural gas prices decreased."
Dubai's main share index (.DFMGI) retreated 1.1%, weighed down by a 1.9% decline in blue-chip developer Emaar Properties (EMAR.DU).
In Abu Dhabi, the equities (.FTFADGI) dropped 0.6%, hit by a 1.5% drop in telecoms firm e& (ETISALAT.AD).
Saudi Arabia's benchmark index (.TASI) eased 0.1% in a choppy trade, with Sahara International Petrochemical Company (2310.SE) losing 3.2%.
Outside the Gulf, Egypt's blue-chip index fell 1.8%.
According to AlAyyaf, the market remains strongly exposed to another bout of decreases as international investors sell.
#UAE's MAF sells $500 mln in perpetual green bonds for refinancing | Reuters
UAE's MAF sells $500 mln in perpetual green bonds for refinancing | Reuters
Dubai's Majid Al Futtaim (MAF), which develops shopping malls across the Middle East, on Thursday sold $500 million in perpetual green hybrid bonds non-callable for 5-1/4 years at 7.95%, a bank document showed.
The yield was tightened from initial guidance of 8.125% to 8.25% for the equity-like debt sale after orders topped $1 billion, the document from one of the banks involved in the deal showed.
Citi (C.N), HSBC (HSBA.L) - the sole green structuring agent - and Standard Chartered (STAN.L) are joint global coordinators, joined by Abu Dhabi Commercial Bank (ADCB.AD), Emirates NBD Capital (ENBD.DU) and First Abu Dhabi Bank (FAB.AD) as joint lead managers.
The bond sale, expected to price later on Thursday, is to refinance MAF's outstanding $500 million perpetual bonds. read more
Dubai's Majid Al Futtaim (MAF), which develops shopping malls across the Middle East, on Thursday sold $500 million in perpetual green hybrid bonds non-callable for 5-1/4 years at 7.95%, a bank document showed.
The yield was tightened from initial guidance of 8.125% to 8.25% for the equity-like debt sale after orders topped $1 billion, the document from one of the banks involved in the deal showed.
Citi (C.N), HSBC (HSBA.L) - the sole green structuring agent - and Standard Chartered (STAN.L) are joint global coordinators, joined by Abu Dhabi Commercial Bank (ADCB.AD), Emirates NBD Capital (ENBD.DU) and First Abu Dhabi Bank (FAB.AD) as joint lead managers.
The bond sale, expected to price later on Thursday, is to refinance MAF's outstanding $500 million perpetual bonds. read more
Oil rebounds as investors assess recession risks | Reuters
Oil rebounds as investors assess recession risks | Reuters
Oil prices edged higher on Thursday after earlier falls as investors weighed the risks of recession and how fuel demand will be affected by rising interest rates and tight supplies.
Brent crude futures rose by 38 cents, or 0.3%, to $112.12 by 1204 GMT, having dropped as low as $108.04 earlier in the session.
U.S. West Texas Intermediate (WTI) crude futures were up 32 cents, or 0.3%, at $106.51 after touching a session low of $102.32.
Both benchmarks plunged 3% on Wednesday and are at their lowest since mid-May.
Oil prices edged higher on Thursday after earlier falls as investors weighed the risks of recession and how fuel demand will be affected by rising interest rates and tight supplies.
Brent crude futures rose by 38 cents, or 0.3%, to $112.12 by 1204 GMT, having dropped as low as $108.04 earlier in the session.
U.S. West Texas Intermediate (WTI) crude futures were up 32 cents, or 0.3%, at $106.51 after touching a session low of $102.32.
Both benchmarks plunged 3% on Wednesday and are at their lowest since mid-May.
Binance (BNB) CEO Moves to #Dubai as US Regulators Target the Crypto Exchange - Bloomberg
Binance (BNB) CEO Moves to Dubai as US Regulators Target the Crypto Exchange - Bloomberg
During the first few months of this year—back when buying digital tokens named after dog memes was still seen, at least in some of the most forward-thinking circles, as a perfectly reasonable way to participate in finance’s bright new future—the cryptocurrency exchange Binance promoted a new, low-risk way to get in on the action. It urged its customers to invest in something called TerraUSD. The token was what’s known in the trade as a “stablecoin,” a type of cryptocurrency that functions a bit like a savings account and promises to always be worth $1. Binance told customers who used its service to buy, sell, and invest in various cryptocurrencies that this particular stablecoin offered something special: the promise of annual returns of almost 20%. TerraUSD, Binance suggested to customers, could be somehow both “safe” and “high yield.”
As crypto enthusiasts know well, and as anyone accustomed to the normal rules of finance can probably guess, Terra turned out to be neither safe nor high yield. The coin was a Ponzi scheme, critics say, the beginning of a collapse that sent Bitcoin prices plummeting and caused companies across the industry to hastily lay off employees and freeze customer withdrawals. Bitcoin is down nearly 70% from its peak in November, and the industry has named the downturn the crypto winter.
This has been bad news for investors swept up in the frenzy, as well as for Binance itself. On May 16, Chief Executive Officer Changpeng Zhao disclosed the extent of Binance’s own Terra-related losses. The company’s stake had been worth $1.6 billion but was now worth close to zero. Not that Zhao was heeding or issuing any warnings. “So, there’s a couple of things about me,” he said in an interview that day. “I don’t really care much about money.”
The comment, made as he sipped a $14 glass of orange juice at a French restaurant in a Four Seasons hotel in Dubai, was hard to believe, coming as it did from the richest man in an industry that’s entirely about money. Zhao is slender and has a shaved head, soft voice, and wardrobe that seems to consist exclusively of black Binance shirts. He’s also something of a cipher. Depending on who’s talking, he’s either a) pioneering a revolutionary system in which a group of vertically integrated digital currency giants—including Binance and competitors such as FTX—will replace not only the world’s stock exchanges but also the entire global financial order, or b) running the world’s largest unlicensed casino.
During the first few months of this year—back when buying digital tokens named after dog memes was still seen, at least in some of the most forward-thinking circles, as a perfectly reasonable way to participate in finance’s bright new future—the cryptocurrency exchange Binance promoted a new, low-risk way to get in on the action. It urged its customers to invest in something called TerraUSD. The token was what’s known in the trade as a “stablecoin,” a type of cryptocurrency that functions a bit like a savings account and promises to always be worth $1. Binance told customers who used its service to buy, sell, and invest in various cryptocurrencies that this particular stablecoin offered something special: the promise of annual returns of almost 20%. TerraUSD, Binance suggested to customers, could be somehow both “safe” and “high yield.”
As crypto enthusiasts know well, and as anyone accustomed to the normal rules of finance can probably guess, Terra turned out to be neither safe nor high yield. The coin was a Ponzi scheme, critics say, the beginning of a collapse that sent Bitcoin prices plummeting and caused companies across the industry to hastily lay off employees and freeze customer withdrawals. Bitcoin is down nearly 70% from its peak in November, and the industry has named the downturn the crypto winter.
This has been bad news for investors swept up in the frenzy, as well as for Binance itself. On May 16, Chief Executive Officer Changpeng Zhao disclosed the extent of Binance’s own Terra-related losses. The company’s stake had been worth $1.6 billion but was now worth close to zero. Not that Zhao was heeding or issuing any warnings. “So, there’s a couple of things about me,” he said in an interview that day. “I don’t really care much about money.”
The comment, made as he sipped a $14 glass of orange juice at a French restaurant in a Four Seasons hotel in Dubai, was hard to believe, coming as it did from the richest man in an industry that’s entirely about money. Zhao is slender and has a shaved head, soft voice, and wardrobe that seems to consist exclusively of black Binance shirts. He’s also something of a cipher. Depending on who’s talking, he’s either a) pioneering a revolutionary system in which a group of vertically integrated digital currency giants—including Binance and competitors such as FTX—will replace not only the world’s stock exchanges but also the entire global financial order, or b) running the world’s largest unlicensed casino.
#Qatar to Demand EU Sign Long-Term LNG Deals If It Wants More Gas - Bloomberg
Qatar to Demand EU Sign Long-Term LNG Deals If It Wants More Gas - Bloomberg
Qatar plans to insist on terms that will lock Europe Union countries in for two decades of liquefied natural gas purchases, a move that will complicate the bloc’s goal to cut emissions while also reducing its dependence on Russian fuel.
The Persian Gulf state, one of the world’s top LNG exporters, will demand that EU nations sign long-term contracts, according to people familiar with the situation who asked not to identified discussing a private matter. The EU countries say they need a shorter duration to hit the region’s pollution reduction goals, the people said.
A recent German deal for a 20-year US LNG supply agreement bolstered Qatar’s reserve to push through its demands, the people said. However, the Europeans argue that the Qatari offers are too rigid, providing buyers little ability to divert supply -- unlike the US contracts. Negotiations on the duration of the imports have been in deadlock since March, the people said.
State-controlled Qatar Energy and Qatargas, which operates the LNG facilities, didn’t immediately respond to requests for comment. Neither did Germany’s finance ministry.
Qatar plans to insist on terms that will lock Europe Union countries in for two decades of liquefied natural gas purchases, a move that will complicate the bloc’s goal to cut emissions while also reducing its dependence on Russian fuel.
The Persian Gulf state, one of the world’s top LNG exporters, will demand that EU nations sign long-term contracts, according to people familiar with the situation who asked not to identified discussing a private matter. The EU countries say they need a shorter duration to hit the region’s pollution reduction goals, the people said.
A recent German deal for a 20-year US LNG supply agreement bolstered Qatar’s reserve to push through its demands, the people said. However, the Europeans argue that the Qatari offers are too rigid, providing buyers little ability to divert supply -- unlike the US contracts. Negotiations on the duration of the imports have been in deadlock since March, the people said.
State-controlled Qatar Energy and Qatargas, which operates the LNG facilities, didn’t immediately respond to requests for comment. Neither did Germany’s finance ministry.
UAE, #Dubai News: #UAE Plans High-Quality Debt Amid Recession Fears - Bloomberg
UAE, Dubai News: UAE Plans High-Quality Debt Amid Recession Fears - Bloomberg
The United Arab Emirates is returning to international bond markets following its debut sale last year, taking advantage of demand for high-quality debt amid mounting concerns over a global recession.
The oil-rich Gulf nation is offering dollar-denominated bonds maturing in 10 and 30 years, according to a person familiar with the matter who’s not authorized to speak publicly and asked not to be identified.
The initial price talk for the 10-year security is about 125 basis points over Treasuries of similar maturity. The initial price thought for the 30-year Formosa bond -- debt issued in Taiwan and denominated in a currency other than the Taiwan dollar -- is at a spread of 200 basis points.
Debt issued by the UAE has outperformed developing peers this month as central banks step up efforts to curb inflation, fueling concerns the global economy may be headed for a recession. The nation’s debt is rated Aa2, the third-highest investment grade, by Moody’s Investors Service, and one step lower at AA- by Fitch Ratings.
The UAE, which comprises seven emirates including oil-rich capital Abu Dhabi and commercial hub Dubai, in October sold its first bond in its half-century history as a combined federation. The sheikhdoms set separate budget policies and several of them have tapped the market over the years.
The United Arab Emirates is returning to international bond markets following its debut sale last year, taking advantage of demand for high-quality debt amid mounting concerns over a global recession.
The oil-rich Gulf nation is offering dollar-denominated bonds maturing in 10 and 30 years, according to a person familiar with the matter who’s not authorized to speak publicly and asked not to be identified.
The initial price talk for the 10-year security is about 125 basis points over Treasuries of similar maturity. The initial price thought for the 30-year Formosa bond -- debt issued in Taiwan and denominated in a currency other than the Taiwan dollar -- is at a spread of 200 basis points.
Debt issued by the UAE has outperformed developing peers this month as central banks step up efforts to curb inflation, fueling concerns the global economy may be headed for a recession. The nation’s debt is rated Aa2, the third-highest investment grade, by Moody’s Investors Service, and one step lower at AA- by Fitch Ratings.
The UAE, which comprises seven emirates including oil-rich capital Abu Dhabi and commercial hub Dubai, in October sold its first bond in its half-century history as a combined federation. The sheikhdoms set separate budget policies and several of them have tapped the market over the years.
#Dubai's TECOM $455 mln IPO heavily oversubscribed -document | Reuters
Dubai's TECOM $455 mln IPO heavily oversubscribed -document | Reuters
TECOM Group's initial public offering (IPO) is heavily oversubscribed at the top of its share price range, suggesting the Dubai business park operator could raise 1.67 billion dirhams ($455 million), a document seen by Reuters showed.
TECOM Group, which is owned the investment vehicle of Dubai's ruler, is selling 625 million shares or a 12.5% stake, in an IPO priced at 2.46-2.67 dirham per share.
The selling shareholder is Dubai Holding Asset Management. read more
Any orders below 2.67 dirham per share risk missing subscription, the document from one of the bookrunners said.
TECOM Group's initial public offering (IPO) is heavily oversubscribed at the top of its share price range, suggesting the Dubai business park operator could raise 1.67 billion dirhams ($455 million), a document seen by Reuters showed.
TECOM Group, which is owned the investment vehicle of Dubai's ruler, is selling 625 million shares or a 12.5% stake, in an IPO priced at 2.46-2.67 dirham per share.
The selling shareholder is Dubai Holding Asset Management. read more
Any orders below 2.67 dirham per share risk missing subscription, the document from one of the bookrunners said.
Major Gulf bourses subdued on oil prices, inflation fears | Reuters
Major Gulf bourses subdued on oil prices, inflation fears | Reuters
Major stock markets in the Gulf were subdued in early trade on Thursday, as mounting worries about the risks of a global recession kept broad investor sentiment fragile.
U.S. Federal Reserve Chair Jerome Powell said on Wednesday the central bank was not trying to engineer a recession to stop inflation but was fully committed to bringing prices under control even if doing so risked an economic downturn. read more
A Reuters poll showed the Fed will deliver another 75-basis-point interest rate hike in July, followed by a half-percentage-point rise in September, and won't scale back to quarter-percentage-point moves until November at the earliest. read more
Saudi Arabia's benchmark index (.TASI) was down 0.1% in a choppy trade, with petrochemical maker Saudi Basic Industries Corp (2010.SE) falling 0.4%.
Oil prices, a key catalyst for the Gulf's financial market, continued to retreat as investors reassessed the risks of recession and the impact of interest rate hikes in major economies on fuel demand.
The main share index (.DFMGI) in Dubai, the Middle East's travel and tourism hub, dropped 0.7%, hit by a 1.4% fall in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
In Abu Dhabi, the equities (.FTFADGI) eased 0.2%, with conglomerate International Holding (IHC.AD) losing 0.3%.
The Qatari benchmark (.QSI) fell 0.3%, with Qatar Gas Transport (QGTS.QA) declining 3.7%.
Separately, more than 1.2 million tickets have been sold for Qatar's 2022 soccer World Cup, organisers said on Wednesday.
Qatar said it had hoped to attract 1.2 million visitors during the World Cup, nearly half of its population.
Major stock markets in the Gulf were subdued in early trade on Thursday, as mounting worries about the risks of a global recession kept broad investor sentiment fragile.
U.S. Federal Reserve Chair Jerome Powell said on Wednesday the central bank was not trying to engineer a recession to stop inflation but was fully committed to bringing prices under control even if doing so risked an economic downturn. read more
A Reuters poll showed the Fed will deliver another 75-basis-point interest rate hike in July, followed by a half-percentage-point rise in September, and won't scale back to quarter-percentage-point moves until November at the earliest. read more
Saudi Arabia's benchmark index (.TASI) was down 0.1% in a choppy trade, with petrochemical maker Saudi Basic Industries Corp (2010.SE) falling 0.4%.
Oil prices, a key catalyst for the Gulf's financial market, continued to retreat as investors reassessed the risks of recession and the impact of interest rate hikes in major economies on fuel demand.
The main share index (.DFMGI) in Dubai, the Middle East's travel and tourism hub, dropped 0.7%, hit by a 1.4% fall in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
In Abu Dhabi, the equities (.FTFADGI) eased 0.2%, with conglomerate International Holding (IHC.AD) losing 0.3%.
The Qatari benchmark (.QSI) fell 0.3%, with Qatar Gas Transport (QGTS.QA) declining 3.7%.
Separately, more than 1.2 million tickets have been sold for Qatar's 2022 soccer World Cup, organisers said on Wednesday.
Qatar said it had hoped to attract 1.2 million visitors during the World Cup, nearly half of its population.
Oil extends falls as investors assess recession risks | Reuters
Oil extends falls as investors assess recession risks | Reuters
A retreat in oil prices continued on Thursday as investors reassessed the risks of recession and how fuel demand will be affected by rising interest rates.
Brent crude futures fell by $1.47, or 1.3%, to $110.27 by 0949 GMT, having dropped as low as $108.04 earlier in the session.
U.S. West Texas Intermediate (WTI) crude futures were down $1.48, or 1.4%, at $104.71 after touching a session low of $102.32.
Both benchmarks plunged 3% on Wednesday and are at their lowest since mid-May.
Investors are continuing to assess how worried they need to be about central banks potentially pushing the world economy into recession as they attempt to curb inflation with increases to interest rates. read more
A retreat in oil prices continued on Thursday as investors reassessed the risks of recession and how fuel demand will be affected by rising interest rates.
Brent crude futures fell by $1.47, or 1.3%, to $110.27 by 0949 GMT, having dropped as low as $108.04 earlier in the session.
U.S. West Texas Intermediate (WTI) crude futures were down $1.48, or 1.4%, at $104.71 after touching a session low of $102.32.
Both benchmarks plunged 3% on Wednesday and are at their lowest since mid-May.
Investors are continuing to assess how worried they need to be about central banks potentially pushing the world economy into recession as they attempt to curb inflation with increases to interest rates. read more
#Qatar Football World Cup to Add Up to $17 Billion to Economy - Bloomberg
Qatar Football World Cup to Add Up to $17 Billion to Economy - Bloomberg
Qatar expects November’s soccer World Cup to add as much as $17 billion to its economy, lower than a previous estimate of $20 billion.
The Gulf country is set to attract 1.2 million visitors, within its earlier estimated range of between 1 million and 1.5 million, Nasser Al Khater, chief executive officer of FIFA World Cup Qatar 2022, said in a Bloomberg Television interview on Wednesday.
Qatar wants to use the tournament to showcase its rapid expansion from a small pearl-diving enclave to Gulf metropolis, energy-exporting power and transit hub. Still, the tournament has been beset with controversies, including over the treatment of migrant workers many from poorer countries.
Al Khater said the criticism was overlooking progress Qatar had made, pointing to legislation including minimum wages for workers and setting their employment hours.
Qatar expects November’s soccer World Cup to add as much as $17 billion to its economy, lower than a previous estimate of $20 billion.
The Gulf country is set to attract 1.2 million visitors, within its earlier estimated range of between 1 million and 1.5 million, Nasser Al Khater, chief executive officer of FIFA World Cup Qatar 2022, said in a Bloomberg Television interview on Wednesday.
Qatar wants to use the tournament to showcase its rapid expansion from a small pearl-diving enclave to Gulf metropolis, energy-exporting power and transit hub. Still, the tournament has been beset with controversies, including over the treatment of migrant workers many from poorer countries.
Al Khater said the criticism was overlooking progress Qatar had made, pointing to legislation including minimum wages for workers and setting their employment hours.
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