BlackRock-led investors in Aramco pipelines to get $4.5 bln in bond sale | Reuters
BlackRock Inc-led investors in Saudi Aramco's gas pipeline network are set to raise $4.5 billion from a sale of bonds to refinance a multi-billion dollar loan that backed their stake purchase, a bank document showed on Thursday.
The investors, including Saudi-backed Hassana Investment Co., had in 2021 taken a 49% stake in Aramco Gas Pipelines Co in a $15.5 billion lease-and-leaseback agreement.
They are now issuing amortising bonds and sukuk, or Islamic bonds, to begin refinancing the $13.4 billion bridge loan that backed the deal. BlackRock had last year held investor meetings in London to drum up interest in the planned bond sale, Reuters reported in September.
The debt sale is expected to be the first of several. Credit rating agency Moody's said it expected the issuer to raise around $11 billion with bonds and sukuk.
Thursday, 9 February 2023
Analysis: StanChart's sluggish stock makes for FAB attraction | Reuters
Analysis: StanChart's sluggish stock makes for FAB attraction | Reuters
Reports of renewed interest from First Abu Dhabi Bank (FAB) in acquiring Standard Chartered could breathe new life into its stock, which has languished for years on stalled revenue growth.
Although FAB abandoned a formal bid for StanChart, as it is widely known, recent media reports have said that the Abu Dhabi bank is still interested in the London-based lender led by global investment banking veteran Bill Winters.
But any fresh takeover approach must remain on ice until a six-month cooling-off period expires, while a merger could expect to face a host of regulatory and practical obstacles.
StanChart declined to comment on the reports of a fresh bid, while FAB did not respond to requests for comment.
While StanChart's balance sheet, staff numbers and global footprint dwarf FAB's, it is worth half as much.
"This is an attractive deal for shareholders as Standard Chartered lags behind peers due to lack of scale in some of the key countries it operates," Viki Farmaki, an analyst at State Street Global Investors, said.
Reports of renewed interest from First Abu Dhabi Bank (FAB) in acquiring Standard Chartered could breathe new life into its stock, which has languished for years on stalled revenue growth.
Although FAB abandoned a formal bid for StanChart, as it is widely known, recent media reports have said that the Abu Dhabi bank is still interested in the London-based lender led by global investment banking veteran Bill Winters.
But any fresh takeover approach must remain on ice until a six-month cooling-off period expires, while a merger could expect to face a host of regulatory and practical obstacles.
StanChart declined to comment on the reports of a fresh bid, while FAB did not respond to requests for comment.
While StanChart's balance sheet, staff numbers and global footprint dwarf FAB's, it is worth half as much.
"This is an attractive deal for shareholders as Standard Chartered lags behind peers due to lack of scale in some of the key countries it operates," Viki Farmaki, an analyst at State Street Global Investors, said.
Aldar Plans #Dubai Projects This Year After Venture With Dubai Holding - Bloomberg
Aldar Plans Dubai Projects This Year After Venture With Dubai Holding - Bloomberg
Aldar Properties PJSC, the biggest developer in Abu Dhabi, plans to start work on projects in Dubai this year after expanding into the Middle East’s business hub in a joint venture with Dubai Holding.
Logistics and commercial offices look “very attractive in Dubai and these are areas you should expect to see us entering into in the next 12 to 24 months,” Chief Financial Officer Greg Fewer said Thursday.
Dubai is a “super important market of ours and we see lots of growth there,” he said. “We see well over 20 billion dirhams in growth development value of the projects that we have acquired and partnered” with state-owned Dubai Holding, Fewer said.
A spectacular turnaround in Dubai’s property market has also seen it break a decade-long record for total home sales and lifted rents to unprecedented levels. That bucked the trend in much of the world, where values have largely dropped amid surging interest rates and an increasingly darkening economic outlook.
Beyond the United Arab Emirates, Aldar has gained a foothold in Egypt by acquiring a majority stake in a developer known as Sodic and is also reportedly considering buying a majority stake in Egyptian developer Medinet Nasr Housing. Fewer said he sees “tremendous growth opportunities” in Egypt.
The developer generated a full-year profit of 3.1 billion dirhams ($840 million), beating analysts’ estimates. The company reported 5 billion dirhams of surplus equity capital, which it aims to deploy to fund a pipeline of acquisitions.
Aldar’s shares have gained 4.7% this year compared with a 2.6% drop for the benchmark Abu Dhabi stock index.
Aldar Properties PJSC, the biggest developer in Abu Dhabi, plans to start work on projects in Dubai this year after expanding into the Middle East’s business hub in a joint venture with Dubai Holding.
Logistics and commercial offices look “very attractive in Dubai and these are areas you should expect to see us entering into in the next 12 to 24 months,” Chief Financial Officer Greg Fewer said Thursday.
Dubai is a “super important market of ours and we see lots of growth there,” he said. “We see well over 20 billion dirhams in growth development value of the projects that we have acquired and partnered” with state-owned Dubai Holding, Fewer said.
A spectacular turnaround in Dubai’s property market has also seen it break a decade-long record for total home sales and lifted rents to unprecedented levels. That bucked the trend in much of the world, where values have largely dropped amid surging interest rates and an increasingly darkening economic outlook.
Beyond the United Arab Emirates, Aldar has gained a foothold in Egypt by acquiring a majority stake in a developer known as Sodic and is also reportedly considering buying a majority stake in Egyptian developer Medinet Nasr Housing. Fewer said he sees “tremendous growth opportunities” in Egypt.
The developer generated a full-year profit of 3.1 billion dirhams ($840 million), beating analysts’ estimates. The company reported 5 billion dirhams of surplus equity capital, which it aims to deploy to fund a pipeline of acquisitions.
Aldar’s shares have gained 4.7% this year compared with a 2.6% drop for the benchmark Abu Dhabi stock index.
#Dubai Islamic Bank to raise $1 bln with sustainable sukuk | Reuters
Dubai Islamic Bank to raise $1 bln with sustainable sukuk | Reuters
Dubai Islamic Bank (DISB.DU), the biggest Islamic lender in the United Arab Emirates, is set to raise $1 billion from a sale of long five-year sustainable sukuk, a bank document showed on Thursday.
The Islamic bonds launched at a yield of 4.8%. Initial price guidance was around 130 basis points over U.S. Treasuries.
Demand for the debt sale was over $2.75 billion, excluding interest from joint lead managers.
Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, KFH Capital, Mashreq, Sharjah Islamic Bank, Standard Chartered Bank and the Islamic Corporation for the Development of the Private Sector arranged the deal.
Dubai Islamic Bank (DISB.DU), the biggest Islamic lender in the United Arab Emirates, is set to raise $1 billion from a sale of long five-year sustainable sukuk, a bank document showed on Thursday.
The Islamic bonds launched at a yield of 4.8%. Initial price guidance was around 130 basis points over U.S. Treasuries.
Demand for the debt sale was over $2.75 billion, excluding interest from joint lead managers.
Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, KFH Capital, Mashreq, Sharjah Islamic Bank, Standard Chartered Bank and the Islamic Corporation for the Development of the Private Sector arranged the deal.
Major Gulf bourses mixed on rate hike uncertainty; Egypt surges | Reuters
Major Gulf bourses mixed on rate hike uncertainty; Egypt surges | Reuters
Saudi and Qatar stock markets fell on Thursday as expectations of higher interest rates in the United States dampened investor sentiment, while the Egyptian index outperformed the region on government plans to sell stakes in 32 firms over the next year.
Federal Reserve officials on Wednesday said interest rates are set to go higher as the U.S. central bank presses forward with its efforts to cool inflation.
Saudi Arabia's benchmark stock index (.TASI) fell 0.9%, dragged down by losses in the materials and banking sectors.
The world's largest Islamic lender, Al Rajhi Bank (1120.SE) dropped 1.8%, while Dr Sulaiman Al-Habib Medical Services (4013.SE) fell 1.2%.
The Qatari stock market (.QSI) settled 0.7% lower around a two-year low, extending losses as natural gas prices fell.
The Gulf's largest lender Qatar National Bank (QNBK.QA) dropped 2.8%, while Fuel retailer Qatar Fuel (QFLS.QA) was down 2.1%.
Egypt's blue-chip index (.EGX30) surged 3.9% to hit a more than 4-year high after the government announced plans to sell stakes in 32 companies by the end of the first quarter of 2024.
Ahmed Negm, Head of Market Research MENA at XS.com, said the sales could help attract large numbers of foreign investors and help keep the main index at elevated levels.
Gains in utilities and banking sector stocks lifted Dubai's main index (.DFMGI) by 0.8%.
State-run utility firm Dubai Electricity and Water Authority (DEWAA.DU) jumped 2.1% after reporting a 22% rise in full year net profit to 8 billion dirhams ($2.18 billion), beating market estimates of 7.44 billion dirhams.
Abu Dhabi's benchmark index (.FTFADGI) edged up 0.1% as it recovered from early losses helped by a 1.5% rise in Conglomerate Alpha Dhabi Holding (ALPHADHABI.AD)
UAE's largest lender First Abu Dhabi Bank (FAB.AD) reversed course to end 0.1% higher following media reports that the lender could renew a potential offer for Britain's Standard Chartered (STAN.L), once lock-up rules from its previous aborted bid expire.
Saudi and Qatar stock markets fell on Thursday as expectations of higher interest rates in the United States dampened investor sentiment, while the Egyptian index outperformed the region on government plans to sell stakes in 32 firms over the next year.
Federal Reserve officials on Wednesday said interest rates are set to go higher as the U.S. central bank presses forward with its efforts to cool inflation.
Saudi Arabia's benchmark stock index (.TASI) fell 0.9%, dragged down by losses in the materials and banking sectors.
The world's largest Islamic lender, Al Rajhi Bank (1120.SE) dropped 1.8%, while Dr Sulaiman Al-Habib Medical Services (4013.SE) fell 1.2%.
The Qatari stock market (.QSI) settled 0.7% lower around a two-year low, extending losses as natural gas prices fell.
The Gulf's largest lender Qatar National Bank (QNBK.QA) dropped 2.8%, while Fuel retailer Qatar Fuel (QFLS.QA) was down 2.1%.
Egypt's blue-chip index (.EGX30) surged 3.9% to hit a more than 4-year high after the government announced plans to sell stakes in 32 companies by the end of the first quarter of 2024.
Ahmed Negm, Head of Market Research MENA at XS.com, said the sales could help attract large numbers of foreign investors and help keep the main index at elevated levels.
Gains in utilities and banking sector stocks lifted Dubai's main index (.DFMGI) by 0.8%.
State-run utility firm Dubai Electricity and Water Authority (DEWAA.DU) jumped 2.1% after reporting a 22% rise in full year net profit to 8 billion dirhams ($2.18 billion), beating market estimates of 7.44 billion dirhams.
Abu Dhabi's benchmark index (.FTFADGI) edged up 0.1% as it recovered from early losses helped by a 1.5% rise in Conglomerate Alpha Dhabi Holding (ALPHADHABI.AD)
UAE's largest lender First Abu Dhabi Bank (FAB.AD) reversed course to end 0.1% higher following media reports that the lender could renew a potential offer for Britain's Standard Chartered (STAN.L), once lock-up rules from its previous aborted bid expire.
#AbuDhabi’s Aldar Properties Q4 net profit jumps 28% on strong demand
Abu Dhabi’s Aldar Properties Q4 net profit jumps 28% on strong demand
The UAE developer Aldar Properties posted a Q4-2022 net profit of 1 billion dirhams ($272 million), up 28% year-on-year and beating estimates by a wide margin.
For the full year 2022 the net profit was up 35% at AED3.1 billion, the developer said in a statement on the Abu Dhabi Securities Exchange on Thursday.
The results topped the analysts’ mean profit estimates of AED699 million for Q4, and AED2.70 billion for FY as compiled by data provider Refinitiv.
Earnings per share (EPS) came in at AED0.36.
Group revenue for the quarter rose 39% on year to AED3.1 billion.
The UAE developer Aldar Properties posted a Q4-2022 net profit of 1 billion dirhams ($272 million), up 28% year-on-year and beating estimates by a wide margin.
For the full year 2022 the net profit was up 35% at AED3.1 billion, the developer said in a statement on the Abu Dhabi Securities Exchange on Thursday.
The results topped the analysts’ mean profit estimates of AED699 million for Q4, and AED2.70 billion for FY as compiled by data provider Refinitiv.
Earnings per share (EPS) came in at AED0.36.
Group revenue for the quarter rose 39% on year to AED3.1 billion.
Dewa to offer higher dividends as 2022 profit surges
Dewa to offer higher dividends as 2022 profit surges
The Emirate of Dubai’s exclusive electricity and water services provider said its consolidated revenue in 2022 rose to Dh27.4 billion in 2022.
Dubai Electricity and Water Authority (Dewa) on Wednesday announced exponential growth in its consolidated and standalone revenues and profits for 2022 and indicates that it will be distributing Dh9.9 billion in dividends to the shareholders as against Dh6.2 billion promised earlier.
The Emirate of Dubai’s exclusive electricity and water services provider said its consolidated revenue in 2022 rose to Dh27.4 billion and net profit reached at Dh8 billion while fourth-quarter revenues and net profit stood firm at Dh6.7 billion (up 14 per cent) and Dh1.5 billion (up 25 per cent), respectively.
The power utility, which is listed on the Dubai Financial Market (DFM), said its standalone net profit surged 101 per cent to Dh11.1 billion, which included Dh4.4bn of other income. The key drivers of this other income included Dh2.3 billion dividend received from Empower and Dh1.67 billion of profit from the sale of Empower shares.
The Emirate of Dubai’s exclusive electricity and water services provider said its consolidated revenue in 2022 rose to Dh27.4 billion in 2022.
Dubai Electricity and Water Authority (Dewa) on Wednesday announced exponential growth in its consolidated and standalone revenues and profits for 2022 and indicates that it will be distributing Dh9.9 billion in dividends to the shareholders as against Dh6.2 billion promised earlier.
The Emirate of Dubai’s exclusive electricity and water services provider said its consolidated revenue in 2022 rose to Dh27.4 billion and net profit reached at Dh8 billion while fourth-quarter revenues and net profit stood firm at Dh6.7 billion (up 14 per cent) and Dh1.5 billion (up 25 per cent), respectively.
The power utility, which is listed on the Dubai Financial Market (DFM), said its standalone net profit surged 101 per cent to Dh11.1 billion, which included Dh4.4bn of other income. The key drivers of this other income included Dh2.3 billion dividend received from Empower and Dh1.67 billion of profit from the sale of Empower shares.
BlackRock-led investors in Aramco pipelines start bond sale | Reuters
BlackRock-led investors in Aramco pipelines start bond sale | Reuters
Investors in Saudi Aramco's gas pipelines network, led by BlackRock Inc (BLK.N), have begun a sale of dollar bonds in three tranches to refinance a multi-billion dollar loan that backed their stake purchase, a bank document showed.
Initial price guidance was around 240 basis points (bps) over U.S. Treasuries (UST) for sukuk, or Islamic bonds, with a weighted average life (WAL) of 7-1/2 years, the document showed.
Guidance was around 275 bps over UST for a tranche with a 12-year WAL and around 305 bps over UST for Formosa bonds with an 18-year WAL. The deal is expected to price late on Thursday.
Investors in Saudi Aramco's gas pipelines network, led by BlackRock Inc (BLK.N), have begun a sale of dollar bonds in three tranches to refinance a multi-billion dollar loan that backed their stake purchase, a bank document showed.
Initial price guidance was around 240 basis points (bps) over U.S. Treasuries (UST) for sukuk, or Islamic bonds, with a weighted average life (WAL) of 7-1/2 years, the document showed.
Guidance was around 275 bps over UST for a tranche with a 12-year WAL and around 305 bps over UST for Formosa bonds with an 18-year WAL. The deal is expected to price late on Thursday.
Alibaba, PIF-Backed Venture Capital Fund to Raise $1 Billion for Tech Deals - Bloomberg
Alibaba, PIF-Backed Venture Capital Fund to Raise $1 Billion for Tech Deals - Bloomberg
A venture capital fund that’s backed by Saudi Arabia’s Public Investment Fund and China’s Alibaba Group is close to raising $1 billion to back technology start-ups in Asia and the Middle East.
“Saudi has a very big market and China has Internet and technology companies that are preparing to expand globally, so one hand has the market, and the other hand has the technology,” eWTP Arabia Capital founding partner Jerry Li said in an interview in Riyadh.
Founded in 2019, the fund raised $400 million for deals that year. It has already invested in 16 companies and plans to list three of them on the Saudi stock exchange and two in the US next year, Li said.
Both the PIF, as the Saudi wealth fund is known, and Alibaba will remain major contributors in the second funding round along with other international investors, he said.
The PIF has been ploughing money into tech firms and startups as it seeks to build a venture capital industry and encourage young entrepreneurs to set up their own businesses to diversify the economy and create jobs. It created a $1 billion fund of funds for venture capital firms and also invests directly through its subsidiary, Sanabil.
A venture capital fund that’s backed by Saudi Arabia’s Public Investment Fund and China’s Alibaba Group is close to raising $1 billion to back technology start-ups in Asia and the Middle East.
“Saudi has a very big market and China has Internet and technology companies that are preparing to expand globally, so one hand has the market, and the other hand has the technology,” eWTP Arabia Capital founding partner Jerry Li said in an interview in Riyadh.
Founded in 2019, the fund raised $400 million for deals that year. It has already invested in 16 companies and plans to list three of them on the Saudi stock exchange and two in the US next year, Li said.
Both the PIF, as the Saudi wealth fund is known, and Alibaba will remain major contributors in the second funding round along with other international investors, he said.
The PIF has been ploughing money into tech firms and startups as it seeks to build a venture capital industry and encourage young entrepreneurs to set up their own businesses to diversify the economy and create jobs. It created a $1 billion fund of funds for venture capital firms and also invests directly through its subsidiary, Sanabil.
Most major Gulf markets open lower on Fed caution; #Dubai rises | Reuters
Most major Gulf markets open lower on Fed caution; Dubai rises | Reuters
Most major Gulf markets tracked global peers lower on Thursday as expectation of higher interest rates by the U.S. Federal Reserve weighed on investor sentiment.
Federal Reserve officials said more interest rate rises are on the cards as the U.S. central bank moves ahead with efforts to control inflation.
Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, exposing the region to direct impact from monetary tightening in the world's largest economy.
The Qatari Stock index (.QSI) fell 0.6%, dragged down by losses in almost all sectors, with Gulf's largest lender Qatar National Bank dropping 1.1%.
The index heavyweights, Islamic banks Qatar International Islamic Bank and Masraf Al Rayan, dropped 2.4% and 1.5% respectively.
Saudi Arabia's benchmark stock index (.TASI) traded 0.6% lower, weighed down by losses in most sectors with oil giant Saudi Aramco falling 0.9% and Al Rajhi Bank losing 0.8%.
The luxury real estate developer Retal Urban and Savola Group dropped 0.3% and 2%, respectively.
In Abu Dhabi, the benchmark stock index (.FTFADGI) fell 0.2%, dragged down by a 2.5% loss in Al Dar Properties and 0.4% fall in largest lender by assets, First Abu Dhabi Bank.
ADNOC Distribution fell 0.9% after it posted a decline in quarterly net profit.
Dana Gas slid 1.7% as it reported on Wednesday a fall in full year net profit.
Dubai's benchmark stock index (.DFMGI) rose 0.8%, lifted by gains in most sectors with Mashreq Bank jumping 5.2% and tolls operator Salik gaining 1.1%.
United Arab Emirates utility provider Dubai Electricity and Water Authority rose 2.5% after it reported 8 billion dirhams ($2.18 billion) in full year net profit, a 22% increase from year earlier.
Most major Gulf markets tracked global peers lower on Thursday as expectation of higher interest rates by the U.S. Federal Reserve weighed on investor sentiment.
Federal Reserve officials said more interest rate rises are on the cards as the U.S. central bank moves ahead with efforts to control inflation.
Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, exposing the region to direct impact from monetary tightening in the world's largest economy.
The Qatari Stock index (.QSI) fell 0.6%, dragged down by losses in almost all sectors, with Gulf's largest lender Qatar National Bank dropping 1.1%.
The index heavyweights, Islamic banks Qatar International Islamic Bank and Masraf Al Rayan, dropped 2.4% and 1.5% respectively.
Saudi Arabia's benchmark stock index (.TASI) traded 0.6% lower, weighed down by losses in most sectors with oil giant Saudi Aramco falling 0.9% and Al Rajhi Bank losing 0.8%.
The luxury real estate developer Retal Urban and Savola Group dropped 0.3% and 2%, respectively.
In Abu Dhabi, the benchmark stock index (.FTFADGI) fell 0.2%, dragged down by a 2.5% loss in Al Dar Properties and 0.4% fall in largest lender by assets, First Abu Dhabi Bank.
ADNOC Distribution fell 0.9% after it posted a decline in quarterly net profit.
Dana Gas slid 1.7% as it reported on Wednesday a fall in full year net profit.
Dubai's benchmark stock index (.DFMGI) rose 0.8%, lifted by gains in most sectors with Mashreq Bank jumping 5.2% and tolls operator Salik gaining 1.1%.
United Arab Emirates utility provider Dubai Electricity and Water Authority rose 2.5% after it reported 8 billion dirhams ($2.18 billion) in full year net profit, a 22% increase from year earlier.
Standard Chartered Is Still in Play as #AbuDhabi's FAB Weighs $35 Billion Offer - Bloomberg
Standard Chartered Is Still in Play as Abu Dhabi's FAB Weighs $35 Billion Offer - Bloomberg
First Abu Dhabi Bank PJSC is pressing ahead with a potential offer for Standard Chartered Plc, after a move to put earlier takeover plans on hold didn’t halt its ambitions to become a global financial powerhouse.
Under the code name Silver-Foxtrot, officials at the Abu Dhabi bank are working under the radar on a possible bid once a cooling off period required by UK takeover rules elapses, according to people familiar with the matter. FAB, as the bank is known, recently completed due diligence on the London-based lender, the people said, asking not to be identified because the matter is private. Any deal would be dependent on market conditions and the performance of Standard Chartered’s share price, they said.
FAB — which is worth about twice as much as Standard Chartered — is exploring an all-cash bid of in the range of $30 billion to $35 billion, the people said. Any acquisition would be funded by its backers, which include Abu Dhabi sovereign fund Mubadala Investment Co. and the emirate’s ruling Al Nahyan family, they said. FAB’s Chairman Sheikh Tahnoon bin Zayed Al Nahyan is a powerful royal, and has in recent years taken on a more prominent role to spearhead the emirate’s political and economic goals.
After a period of higher crude prices, Abu Dhabi is keen to use its oil windfall to transform the city’s financial sector, which has lagged many of its other key industries such as energy, tourism and logistics. Such an attempt would represent a step beyond the moves other wealthy Gulf nations have made to take minority stakes in firms like Barclays Plc and Credit Suisse Group AG.
First Abu Dhabi Bank PJSC is pressing ahead with a potential offer for Standard Chartered Plc, after a move to put earlier takeover plans on hold didn’t halt its ambitions to become a global financial powerhouse.
Under the code name Silver-Foxtrot, officials at the Abu Dhabi bank are working under the radar on a possible bid once a cooling off period required by UK takeover rules elapses, according to people familiar with the matter. FAB, as the bank is known, recently completed due diligence on the London-based lender, the people said, asking not to be identified because the matter is private. Any deal would be dependent on market conditions and the performance of Standard Chartered’s share price, they said.
FAB — which is worth about twice as much as Standard Chartered — is exploring an all-cash bid of in the range of $30 billion to $35 billion, the people said. Any acquisition would be funded by its backers, which include Abu Dhabi sovereign fund Mubadala Investment Co. and the emirate’s ruling Al Nahyan family, they said. FAB’s Chairman Sheikh Tahnoon bin Zayed Al Nahyan is a powerful royal, and has in recent years taken on a more prominent role to spearhead the emirate’s political and economic goals.
After a period of higher crude prices, Abu Dhabi is keen to use its oil windfall to transform the city’s financial sector, which has lagged many of its other key industries such as energy, tourism and logistics. Such an attempt would represent a step beyond the moves other wealthy Gulf nations have made to take minority stakes in firms like Barclays Plc and Credit Suisse Group AG.
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