Saudi Arabia to Raise $11 Billion in Biggest EMEA Loan This Year - Bloomberg
Saudi Arabia plans to raise $11 billion from a syndicated loan — in what would be the biggest financing deal in Europe, the Middle East and Africa this year — as the kingdom seeks to finance its ambitious investment plans.
The kingdom’s Ministry of Finance has appointed Industrial & Commercial Bank of China Ltd. as coordinator and bookrunner for the long-term senior, unsecured loan, according to people familiar with the matter. The 10-year debt is offering an interest rate of 100 basis points over the Secured Overnight Financing Rate — the usual reference rate when borrowing in dollars, the people said, asking not to be identified because the matter is private.
ICBC, as the Chinese lender is known, has invited other banks to participate in the loan and has asked interested parties to respond before mid-October, the people said. It’s not immediately clear what the loan will be used for, although the kingdom has a slew of projects in the pipeline as part of a diversification drive championed by Crown Prince Mohammed bin Salman.
While part of that will be funded by oil revenue, the government also needs to attract foreign investment and borrow. Many key bodies investing in Vision 2030 projects, including the Public Investment Fund and its subsidiaries developing the new city of Neom, have already borrowed tens of billions of dollars.
A representative for the Ministry of Finance didn’t immediately respond to requests for comment outside of office hours on Friday. A representative for ICBC wasn’t immediately available to comment.
A deal by the kingdom would boost EMEA’s syndicated loan market, which has suffered a 27% drop year-to-date, according to Bloomberg data. It also highlights the increasing use of Chinese lenders in the Middle East. The rankings of major Chinese banks such as Bank of China and ICBC have risen in league tables of loan arrangers every year since the pandemic, according to the data.
ICBC has this year jumped seven spots to eleventh in a table of bookrunners for Middle East loans, while BOC climbed four spots to 13th place, the data shows.
Saudi Arabia is in talks to raise the funds after its budget deficit widened in the second quarter as the government raised spending on social benefits and projects meant to diversify its economy. A series of oil production cuts and lower prices may lead the kingdom’s economy to contract this year. In July, the International Monetary Fund gave the kingdom the steepest growth downgrade among major economies for this year.
Friday 15 September 2023
#Saudi Aramco agrees to purchase 100% equity stake in Esmax Distribusción SpA from -statement | Reuters
Saudi Aramco agrees to purchase 100% equity stake in Esmax Distribusción SpA from -statement | Reuters
Saudi Arabian oil giant Aramco (2222.SE) agreed to purchase a 100% equity stake in Chile's Esmax Distribución SpA (Esmax) from Southern Cross Group, the company said in a statement on Friday.
"The transaction is subject to certain customary conditions, including regulatory approvals," the statement added.
Saudi Arabian oil giant Aramco (2222.SE) agreed to purchase a 100% equity stake in Chile's Esmax Distribución SpA (Esmax) from Southern Cross Group, the company said in a statement on Friday.
"The transaction is subject to certain customary conditions, including regulatory approvals," the statement added.
#AbuDhabi's KBBO Group restructuring plan gets court approval | Reuters #NMC
Abu Dhabi's KBBO Group restructuring plan gets court approval | Reuters
A plan to restructure Abu Dhabi investment firm KBBO Group and its hospital unit received court approval on Friday following months of negotiations, said Deloitte, which is acting as trustee of the group.
KBBO Group was one of the biggest shareholders of collapsed firm NMC Health. KBBO's founder Khalifa Bin Butti Al Muhairi filed for bankruptcy through an Abu Dhabi court two years ago after NMC's collapse. He was also vice-chairman of NMC.
The majority of creditors approved the restructuring plan for KBBO Group and its associated entities on Aug. 14, Deloitte said.
"The restructuring plan will be implemented to maximise the return for all of the creditors with 7 billion dirhams ($1.91 billion) to 12 billion of claims, including multiple complex cross guarantee positions," the statement said.
The Emirates Hospital Group restructuring plan includes raising 150 million dirhams in new money, the recapitalisation of its balance sheet, along with an option to implement an asset disposal/rationalization plan, the statement added.
NMC, which was founded by Indian businessman BR Shetty in the mid-1970s, ran into difficulties after short-seller Muddy Waters questioned its financial reporting and doubts emerged over the size of stakes owned by its biggest shareholders.
NMC also disclosed more than $4 billion in hidden debt, which led to London-listed NMC Health being placed in administration in April 2020.
A plan to restructure Abu Dhabi investment firm KBBO Group and its hospital unit received court approval on Friday following months of negotiations, said Deloitte, which is acting as trustee of the group.
KBBO Group was one of the biggest shareholders of collapsed firm NMC Health. KBBO's founder Khalifa Bin Butti Al Muhairi filed for bankruptcy through an Abu Dhabi court two years ago after NMC's collapse. He was also vice-chairman of NMC.
The majority of creditors approved the restructuring plan for KBBO Group and its associated entities on Aug. 14, Deloitte said.
"The restructuring plan will be implemented to maximise the return for all of the creditors with 7 billion dirhams ($1.91 billion) to 12 billion of claims, including multiple complex cross guarantee positions," the statement said.
The Emirates Hospital Group restructuring plan includes raising 150 million dirhams in new money, the recapitalisation of its balance sheet, along with an option to implement an asset disposal/rationalization plan, the statement added.
NMC, which was founded by Indian businessman BR Shetty in the mid-1970s, ran into difficulties after short-seller Muddy Waters questioned its financial reporting and doubts emerged over the size of stakes owned by its biggest shareholders.
NMC also disclosed more than $4 billion in hidden debt, which led to London-listed NMC Health being placed in administration in April 2020.
#UAE shares end higher on strong oil, China optimism | Reuters
UAE shares end higher on strong oil, China optimism | Reuters
Stock markets in the United Arab Emirates rose on Friday, tracking higher oil prices and optimism that the Chinese economy is finally turning a corner.
Oil prices — a key catalyst for the Gulf's financial market — were up 0.4% on supply concerns after Saudi Arabia and OPEC+ extended production cuts to the end of the year, with Brent trading at $94.11 a barrel by 1130 GMT.
Upbeat retail sales and industrial output data for August added to signs of stabilization in the economy of China, the world's biggest oil importer.
In Abu Dhabi, the index (.FTFADGI) rose 0.9%, extending its winning streak to a seventh session, while weekly gains hit over a seven-month high.
The index was lifted by a 1.2% gain in International Holding Company (IHC.AD) and a 1.8% and 1.2% rise in its units Multiply Group (MULTIPLY.AD) and Alpha Dhabi (ALPHADHABI.AD), respectively.
Abu Dhabi-based investment manager Lunate, owned by its senior management and Chimera Investment, said on Thursday it was launching with over $50 billion in assets under management and a focus on private markets.
Chimera is part of Sheikh Tahnoon's private investment firm Royal Group, which is majority owner of IHC.
Dubai's benchmark index (.DFMGI) ended 0.2% higher, snapping its three-session losing streak, supported by a 2.6% rise in Emirate's largest lender Emirates NBD (ENBD.DU) and a 1.2% gain in Dubai Electric (DEWAA.DU).
Stock markets in the United Arab Emirates rose on Friday, tracking higher oil prices and optimism that the Chinese economy is finally turning a corner.
Oil prices — a key catalyst for the Gulf's financial market — were up 0.4% on supply concerns after Saudi Arabia and OPEC+ extended production cuts to the end of the year, with Brent trading at $94.11 a barrel by 1130 GMT.
Upbeat retail sales and industrial output data for August added to signs of stabilization in the economy of China, the world's biggest oil importer.
In Abu Dhabi, the index (.FTFADGI) rose 0.9%, extending its winning streak to a seventh session, while weekly gains hit over a seven-month high.
The index was lifted by a 1.2% gain in International Holding Company (IHC.AD) and a 1.8% and 1.2% rise in its units Multiply Group (MULTIPLY.AD) and Alpha Dhabi (ALPHADHABI.AD), respectively.
Abu Dhabi-based investment manager Lunate, owned by its senior management and Chimera Investment, said on Thursday it was launching with over $50 billion in assets under management and a focus on private markets.
Chimera is part of Sheikh Tahnoon's private investment firm Royal Group, which is majority owner of IHC.
Dubai's benchmark index (.DFMGI) ended 0.2% higher, snapping its three-session losing streak, supported by a 2.6% rise in Emirate's largest lender Emirates NBD (ENBD.DU) and a 1.2% gain in Dubai Electric (DEWAA.DU).
Spain Says It’s Analyzing #Saudi Telecom Investment in Telefonica - Bloomberg
Spain Says It’s Analyzing Saudi Telecom Investment in Telefonica - Bloomberg
Spain is analyzing Saudi Telecom Co.’s plan to become Telefonica SA’s largest shareholder, and has legal instruments to protect the country’s strategic interests, Prime Minister Pedro Sanchez said.
“The government is analyzing the investment operation thoroughly,” Sanchez said on Friday at an event in Madrid. “We have the adequate instruments to exercise the necessary controls and we will guarantee that at all times national defense and security, understood in a broad sense, will be safeguarded. And we also guarantee that any foreign investment will not exceed the limits that would involve undue influence over strategic companies, or access to critical technologies.”
Sanchez, making his first public comments since the deal was announced last week, didn’t mention the firms by name and referred to foreign investors taking a stake in a Spanish telecommunications company “of reference.” He also said that interest from large international investors in Spanish companies is “always good news.”
Saudi Telecom plans to take a nearly 10% stake in Telefonica for about $2.25 billion as the struggling Madrid-based carrier prepares to lay out a new strategy for future growth. If approved, the stake purchase would turn Saudi Telecom into Telefonica’s largest shareholder, surpassing Banco Bilbao Vizcaya Argentaria SA, Blackrock Inc. and CaixaBank SA, which each own less than 5%.
Spain is analyzing Saudi Telecom Co.’s plan to become Telefonica SA’s largest shareholder, and has legal instruments to protect the country’s strategic interests, Prime Minister Pedro Sanchez said.
“The government is analyzing the investment operation thoroughly,” Sanchez said on Friday at an event in Madrid. “We have the adequate instruments to exercise the necessary controls and we will guarantee that at all times national defense and security, understood in a broad sense, will be safeguarded. And we also guarantee that any foreign investment will not exceed the limits that would involve undue influence over strategic companies, or access to critical technologies.”
Sanchez, making his first public comments since the deal was announced last week, didn’t mention the firms by name and referred to foreign investors taking a stake in a Spanish telecommunications company “of reference.” He also said that interest from large international investors in Spanish companies is “always good news.”
Saudi Telecom plans to take a nearly 10% stake in Telefonica for about $2.25 billion as the struggling Madrid-based carrier prepares to lay out a new strategy for future growth. If approved, the stake purchase would turn Saudi Telecom into Telefonica’s largest shareholder, surpassing Banco Bilbao Vizcaya Argentaria SA, Blackrock Inc. and CaixaBank SA, which each own less than 5%.
London-Listed Rockfire to Acquire Suspended #Dubai Gold Refinery, Emirates Gold - Bloomberg
London-Listed Rockfire to Acquire Suspended Dubai Gold Refinery, Emirates Gold - Bloomberg
One of Dubai’s biggest gold refineries, suspended in July over concerns that its owners had ties to alleged money launderers, is being acquired by London-listed mining explorer.
Rockfire Resources Plc is buying Dubai-based Emirates Gold DMCC in a reverse takeover under London’s Alternative Investment Market rules, it said in a statement Friday. Rockfire, valued at less than £7 million ($8.7 million) before trading was temporarily suspended on AIM, will pay a total of $20 million.
The London-listed company said the deal is conditional on Emirates Gold being restored to the United Arab Emirates’s Good Delivery List. The UAE’s suspension of the refinery’s accreditation has prevented it from delivering bullion into the Dubai market, according to Rockfire.
The owners of the refinery, Paloma Precious Metals DMCC, bought 21.7% of Rockfire in June. As part of the proposed transaction, Rockfire will seek to raise £14.7 million through a share subscription.
The UAE created its Good Delivery list as a standard for top precious metals firms. To maintain that accreditation, refiners must undergo annual audits to ensure they’re complying with anti-money laundering and responsible sourcing laws.
The clean-up of the gold sector is part of the UAE’s bid to rehabilitate its financial reputation, after being added to a watch-list by a money laundering watchdog last year. The Paris-based Financial Action Taskforce named the UAE’s gold industry as a cause for concern before adding the country to its “gray list.”
Two of the ultimate beneficial owners of Emirates Gold are relatives of Zimbabwean businessmen Simon Rudland and Howard Baker, Bloomberg reported in July. A documentary by Al Jazeera earlier this year alleged that the two men were involved in money laundering through the UAE’s gold sector. It didn’t name any specific UAE refiner in connection with them.
In response to the Al Jazeera documentary, Rudland denied involvement in money laundering. Baker didn’t respond to the channel when asked for comment.
One of Dubai’s biggest gold refineries, suspended in July over concerns that its owners had ties to alleged money launderers, is being acquired by London-listed mining explorer.
Rockfire Resources Plc is buying Dubai-based Emirates Gold DMCC in a reverse takeover under London’s Alternative Investment Market rules, it said in a statement Friday. Rockfire, valued at less than £7 million ($8.7 million) before trading was temporarily suspended on AIM, will pay a total of $20 million.
The London-listed company said the deal is conditional on Emirates Gold being restored to the United Arab Emirates’s Good Delivery List. The UAE’s suspension of the refinery’s accreditation has prevented it from delivering bullion into the Dubai market, according to Rockfire.
The owners of the refinery, Paloma Precious Metals DMCC, bought 21.7% of Rockfire in June. As part of the proposed transaction, Rockfire will seek to raise £14.7 million through a share subscription.
The UAE created its Good Delivery list as a standard for top precious metals firms. To maintain that accreditation, refiners must undergo annual audits to ensure they’re complying with anti-money laundering and responsible sourcing laws.
The clean-up of the gold sector is part of the UAE’s bid to rehabilitate its financial reputation, after being added to a watch-list by a money laundering watchdog last year. The Paris-based Financial Action Taskforce named the UAE’s gold industry as a cause for concern before adding the country to its “gray list.”
Two of the ultimate beneficial owners of Emirates Gold are relatives of Zimbabwean businessmen Simon Rudland and Howard Baker, Bloomberg reported in July. A documentary by Al Jazeera earlier this year alleged that the two men were involved in money laundering through the UAE’s gold sector. It didn’t name any specific UAE refiner in connection with them.
In response to the Al Jazeera documentary, Rudland denied involvement in money laundering. Baker didn’t respond to the channel when asked for comment.
#AbuDhabi's Chimera, partners launch alternative investor Lunate with over $50 billion in assets under management | Reuters
Abu Dhabi's Chimera, partners launch alternative investor Lunate with over $50 billion in assets under management | Reuters
Lunate, a newly set up Abu Dhabi-based alternative investment manager, said on Thursday it was launching with over $50 billion in assets under management (AUM) and a focus on private markets.
The firm is owned by its senior management and Chimera Investment, part of a vast business empire overseen by Sheikh Tahnoun bin Zayed Al Nahyan, the United Arab Emirates' national security adviser and brother of UAE President Sheikh Mohammed bin Zayed.
Lunate is led by Khalifa Al Suwaidi, Murtaza Hussain and Seif Fikry, its co-managing partners.
"The creation of Lunate follows a multi-party effort to establish an independent investment manager of scale and breadth, headquartered in Abu Dhabi and serving global markets," Lunate said in a statement.
"Lunate will invest globally through a combination of Limited Partner (LP) commitments, coinvestments and direct investments across private equity, venture capital, private credit, real assets, public equities, and public credit."
It has 150 employees and aims to expand globally and set up offices in North America, Europe and Asia.
Lunate will also invest in public markets alongside its focus on the private space and will target institutional investors and family offices, it said, adding it was one of the Middle East and North Africa's largest alternative investment managers.
Based in Abu Dhabi Global Market, the emirate's financial centre, it has signed long-term separate managed accounts (SMAs) with various clients. The firm will manage their existing assets and said they have committed to deploying new capital. It did not identify the clients.
Chimera is part of Sheikh Tahnoun's private investment firm Royal Group, which is majority owner of the UAE's biggest listed firm, International Holding Company. Two of IHC's subsidiaries, Alpha Dhabi and Multiply Group, are the second- and third-largest listed firms on the Abu Dhabi Securities Exchange.
Sheikh Thanoun also chairs the Abu Dhabi Investment Authority, estimated by wealth fund tracker GlobalSWF to manage $993 billion in assets, and ADQ, Abu Dhabi's third-largest wealth fund.
ADQ and IHC said in March they would create a multi-asset class investment manager with global private equity firm General Atlantic as a strategic partner and investor.
Lunate, a newly set up Abu Dhabi-based alternative investment manager, said on Thursday it was launching with over $50 billion in assets under management (AUM) and a focus on private markets.
The firm is owned by its senior management and Chimera Investment, part of a vast business empire overseen by Sheikh Tahnoun bin Zayed Al Nahyan, the United Arab Emirates' national security adviser and brother of UAE President Sheikh Mohammed bin Zayed.
Lunate is led by Khalifa Al Suwaidi, Murtaza Hussain and Seif Fikry, its co-managing partners.
"The creation of Lunate follows a multi-party effort to establish an independent investment manager of scale and breadth, headquartered in Abu Dhabi and serving global markets," Lunate said in a statement.
"Lunate will invest globally through a combination of Limited Partner (LP) commitments, coinvestments and direct investments across private equity, venture capital, private credit, real assets, public equities, and public credit."
It has 150 employees and aims to expand globally and set up offices in North America, Europe and Asia.
Lunate will also invest in public markets alongside its focus on the private space and will target institutional investors and family offices, it said, adding it was one of the Middle East and North Africa's largest alternative investment managers.
Based in Abu Dhabi Global Market, the emirate's financial centre, it has signed long-term separate managed accounts (SMAs) with various clients. The firm will manage their existing assets and said they have committed to deploying new capital. It did not identify the clients.
Chimera is part of Sheikh Tahnoun's private investment firm Royal Group, which is majority owner of the UAE's biggest listed firm, International Holding Company. Two of IHC's subsidiaries, Alpha Dhabi and Multiply Group, are the second- and third-largest listed firms on the Abu Dhabi Securities Exchange.
Sheikh Thanoun also chairs the Abu Dhabi Investment Authority, estimated by wealth fund tracker GlobalSWF to manage $993 billion in assets, and ADQ, Abu Dhabi's third-largest wealth fund.
ADQ and IHC said in March they would create a multi-asset class investment manager with global private equity firm General Atlantic as a strategic partner and investor.