Saudi Arabia Government Preps Green Bond Debut - Bloomberg
Saudi Arabia’s government mandated banks for another wave of debt sales, including a debut green bond, as the kingdom ramps up a borrowing spree aimed at helping to fund the country’s vast economic diversification agenda.
The Ministry of Finance may issue euro-denominated notes as soon as tomorrow, subject to market conditions, according to a person familiar with the matter, who asked not to be identified discussing private information. The offering may include a seven-year green bond and conventional with a tenor of 12 years, the person said.
The potential offering adds to a flurry of recent borrowing activity from the kingdom, including the sale of $12 billion of sovereign bonds last month. If a green sale goes ahead, it would be the first from the central government as the world’s top oil exporter looks to cut greenhouse gas emissions by 278 million tons per year by 2030. The Saudi sovereign wealth fund known as the PIF started issuing green debt in 2022.
Proceeds from the green bond would be used to finance projects within the country’s green financial framework, according to the person familiar. That framework identifies eight types of projects eligible for funding from so-called green debt sales, including work that promotes cleaner transportation and renewable energy.
Saudi Arabia’s finance ministry mandated HSBC, JPMorgan and Societe Generale as global coordinators for the potential bond sale.
The kingdom — via the sovereign and state entities such as the PIF, which has roughly $925 billion of assets — has been one of the most prolific issuers among emerging markets over the past year. The government has said it plans to continue tapping debt markets in 2025 as it seeks to plug an expected budget deficit.
Monday, 24 February 2025
#AbuDhabi’s First IPO of the Year Rides AI Boom to Price at Top - Bloomberg #UAE
Abu Dhabi’s First IPO of the Year Rides AI Boom to Price at Top - Bloomberg
Alpha Data is likely to price its initial public offering in Abu Dhabi at the top of a planned range, as investors piled into the IT services firm that’s been a beneficiary of the surge in interest in artificial intelligence.
The listing is expected to price at 1.50 dirhams ($0.41) a share, the top end of a range which began at at 1.45 dirhams, according to terms of the deal seen by Bloomberg News. That puts the firm on track to raise 600 million dirhams at a valuation of 1.5 billion dirhams.
Alpha Data’s listing will be the first deal of 2025 in the United Arab Emirates — the Middle East’s busiest venue for listings last year. The IPO will further help diversify the Abu Dhabi bourse, giving investors the chance to buy into a firm that reported compound annual revenue growth of 23% between 2021 and 2024.
This year has started positively, especially with the tailwind from agentic AI, Alpha Data founder Fayez Ibbini told Bloomberg News this month. The company is selling up to 400 million shares, or a 40% stake, and had demand for all shares on offer shortly after subscriptions opened earlier this month.
The stock is expected to start trading on the Abu Dhabi exchange in March.
Firms raised over $6 billion with new share sales in the UAE in 2024, accounting for about 46% of the total haul for the Middle East. Still, two of the largest offerings — Talabat Holding PLC and Lulu Retail Holdings PLC — had muted debuts after drawing significant demand.
The UAE is set for a busy year in 2025 too. In addition to Alpha Data, Etihad Airways PJSC is teeing up a $1 billion IPO in Abu Dhabi that will make it the first major Gulf carrier to be listed. Last week, Abu Dhabi National Oil Co. raised $2.84 billion from a secondary offering in its gas unit.
In neighboring Dubai, state-backed Investment Corp. of Dubai is planning to take a construction company public, while an investment vehicle controlled by the emirate’s ruler is preparing to list two separate real estate portfolios.
Established in 1981 by Ibbini, Alpha Data’s technologies include artificial intelligence, security, big data and cloud services, according to its website. The company plans to pay a dividend of 130 million dirhams for the financial year ending December 31, in two equal tranches.
It operates in the UAE, Qatar and Saudi Arabia and employs 1,500 people.
EFG Hermes and Emirates NBD Capital are joint global coordinators on the share sale, and Abu Dhabi Commercial Bank is joint bookrunner.
Alpha Data is likely to price its initial public offering in Abu Dhabi at the top of a planned range, as investors piled into the IT services firm that’s been a beneficiary of the surge in interest in artificial intelligence.
The listing is expected to price at 1.50 dirhams ($0.41) a share, the top end of a range which began at at 1.45 dirhams, according to terms of the deal seen by Bloomberg News. That puts the firm on track to raise 600 million dirhams at a valuation of 1.5 billion dirhams.
Alpha Data’s listing will be the first deal of 2025 in the United Arab Emirates — the Middle East’s busiest venue for listings last year. The IPO will further help diversify the Abu Dhabi bourse, giving investors the chance to buy into a firm that reported compound annual revenue growth of 23% between 2021 and 2024.
This year has started positively, especially with the tailwind from agentic AI, Alpha Data founder Fayez Ibbini told Bloomberg News this month. The company is selling up to 400 million shares, or a 40% stake, and had demand for all shares on offer shortly after subscriptions opened earlier this month.
The stock is expected to start trading on the Abu Dhabi exchange in March.
Firms raised over $6 billion with new share sales in the UAE in 2024, accounting for about 46% of the total haul for the Middle East. Still, two of the largest offerings — Talabat Holding PLC and Lulu Retail Holdings PLC — had muted debuts after drawing significant demand.
The UAE is set for a busy year in 2025 too. In addition to Alpha Data, Etihad Airways PJSC is teeing up a $1 billion IPO in Abu Dhabi that will make it the first major Gulf carrier to be listed. Last week, Abu Dhabi National Oil Co. raised $2.84 billion from a secondary offering in its gas unit.
In neighboring Dubai, state-backed Investment Corp. of Dubai is planning to take a construction company public, while an investment vehicle controlled by the emirate’s ruler is preparing to list two separate real estate portfolios.
Established in 1981 by Ibbini, Alpha Data’s technologies include artificial intelligence, security, big data and cloud services, according to its website. The company plans to pay a dividend of 130 million dirhams for the financial year ending December 31, in two equal tranches.
It operates in the UAE, Qatar and Saudi Arabia and employs 1,500 people.
EFG Hermes and Emirates NBD Capital are joint global coordinators on the share sale, and Abu Dhabi Commercial Bank is joint bookrunner.
#SaudiArabia to buy control of Olam's agribusiness for $1.8 billion; shares jump | Reuters
Saudi Arabia to buy control of Olam's agribusiness for $1.8 billion; shares jump | Reuters
Saudi Arabia's agricultural and livestock investment firm SALIC has agreed to buy a 44.58% stake in Singapore-based Olam Group's (OLAG.SI), opens new tab agricultural products business Olam for $1.78 billion, the companies said on Monday.
Shares in Olam Group jumped as much as 8.9% in early trading to S$1.23, their biggest daily jump since November last year.
The transaction values Olam Agri at $4 billion, higher than the $3.5 billion valuation in December 2022, opens new tab when it sold a 35% stake to SALIC, and will give SALIC an 80% controlling stake in the business.
Saudi Arabia's sovereign wealth fund, the $925 billion Public Investment Fund (PIF), owns SALIC.
The deal underscores the kingdom's drive to prioritise secure food supply chains and rely less on imports.
Gulf Cooperation Council (GCC) countries import up to 85% of their food, including the majority of staples such as rice and cereals, according to PwC. Abu Dhabi holding firm ADQ in 2021 also bought a 45% stake in Louis Drefus Company in a similar move.
Olam Group, which was advised by Rothschild on the deal, will divest its remaining 19.99% stake in the unit three years after the completion of the first phase, giving SALIC full control of Olam Agri, it said.
The deal will result in a gain of $1.84 billion for Olam Group, the firm said in an exchange filing, opens new tab.
Including the 35.43% stake sold to SALIC in December 2022, opens new tab, Olam Group will unlock $3.87 billion in gross proceeds from the complete divestment of Olam Agri.
"The full acquisition agreement of Olam Agri aligns with SALIC's strategic objectives of diversifying sources of essential commodities ... to secure a key position in the global grains sector," SALIC Group CEO Sulaiman AlRumaih said in a statement.
Olam Group, which is also planning to list its ingredients business, ofi, on the premium segment of the London Stock Exchange alongside a secondary listing in Singapore, said it can now focus on ways to unlock value for the remaining businesses.
"With this transaction, we can now focus our attention on seeking strategic options to unlock value for the remaining Olam Group businesses and ofi, including the pursuit of an IPO," Group CEO Sunny Verghese said.
Saudi Arabia's agricultural and livestock investment firm SALIC has agreed to buy a 44.58% stake in Singapore-based Olam Group's (OLAG.SI), opens new tab agricultural products business Olam for $1.78 billion, the companies said on Monday.
Shares in Olam Group jumped as much as 8.9% in early trading to S$1.23, their biggest daily jump since November last year.
The transaction values Olam Agri at $4 billion, higher than the $3.5 billion valuation in December 2022, opens new tab when it sold a 35% stake to SALIC, and will give SALIC an 80% controlling stake in the business.
Saudi Arabia's sovereign wealth fund, the $925 billion Public Investment Fund (PIF), owns SALIC.
The deal underscores the kingdom's drive to prioritise secure food supply chains and rely less on imports.
Gulf Cooperation Council (GCC) countries import up to 85% of their food, including the majority of staples such as rice and cereals, according to PwC. Abu Dhabi holding firm ADQ in 2021 also bought a 45% stake in Louis Drefus Company in a similar move.
Olam Group, which was advised by Rothschild on the deal, will divest its remaining 19.99% stake in the unit three years after the completion of the first phase, giving SALIC full control of Olam Agri, it said.
The deal will result in a gain of $1.84 billion for Olam Group, the firm said in an exchange filing, opens new tab.
Including the 35.43% stake sold to SALIC in December 2022, opens new tab, Olam Group will unlock $3.87 billion in gross proceeds from the complete divestment of Olam Agri.
"The full acquisition agreement of Olam Agri aligns with SALIC's strategic objectives of diversifying sources of essential commodities ... to secure a key position in the global grains sector," SALIC Group CEO Sulaiman AlRumaih said in a statement.
Olam Group, which is also planning to list its ingredients business, ofi, on the premium segment of the London Stock Exchange alongside a secondary listing in Singapore, said it can now focus on ways to unlock value for the remaining businesses.
"With this transaction, we can now focus our attention on seeking strategic options to unlock value for the remaining Olam Group businesses and ofi, including the pursuit of an IPO," Group CEO Sunny Verghese said.
Aramco weighs on #Saudi bourse, profit-taking hits #Dubai | Reuters
Aramco weighs on Saudi bourse, profit-taking hits Dubai | Reuters
Most stock markets in the Gulf ended lower on Monday as oil giant Saudi Aramco weighed on the Saudi index, while the Dubai bourse extended losses on profit-taking.
Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.6%, pulled lower by a 1.8% fall in Saudi Aramco (2222.SE), opens new tab.
Aramco is forecast to have no performance-linked dividend this year after a more balanced 2024 cash cycle following earlier bumper results that backed the special payout, JPMorgan said in a research note on Friday.
The oil behemoth is slated to report its 2024 results on March 4.
On the other hand, ACWA Power Company (2082.SE), opens new tab was up 2.3%, on track to extend gains from the previous session.
ACWA to buy $693 million stakes in Kuwait and Bahrain assets from ENGIE (ENGIE.PA), opens new tab, covering operating capacities of 4.61 GW gas-fired power generation and 1.11 million cubic meters per day (m3/day) water desalination facilities.
Dubai's main share index (.DFGMI), opens new tab lost 0.5%, extending losses for a second session, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab declining 1.8%.
Elsewhere, district cooling services provider Empower (EMPOWER.DU), opens new tab gave up early gains to close 2.9% lower.
Empower and Dubai Multi Commodities Centre signed an agreement to supply the next phase of Uptown Dubai with sustainable district cooling services.
These movements may represent a healthy correction before the market resumes its upward trajectory, supported by recent positive results and strong growth projections for the year, said Joseph Dahrieh, Managing Principal at Tickmill.
However, construction and engineering company Drake & Scull International (DSI.DU), opens new tab advanced 1.8%, after winning contracts worth over 1 billion dirhams ($272.28 million) for the Arabian Hills project.
In Abu Dhabi, the index (.FTFADGI), opens new tab eased 0.2%.
The Qatari index (.QSI), opens new tab added 0.2%, helped by a 1.2% rise in Qatar Islamic Bank (QISB.QA), opens new tab.
Meanwhile, Qatar's Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani said on Sunday that six venture capital firms the investment authority has invested in as part of its "fund of funds" programme will open offices or regional headquarters in Qatar.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab closed 0.3% lower, hit by a 2.3% fall in EFG Holding Company (HRHO.CA), opens new tab.
Most stock markets in the Gulf ended lower on Monday as oil giant Saudi Aramco weighed on the Saudi index, while the Dubai bourse extended losses on profit-taking.
Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.6%, pulled lower by a 1.8% fall in Saudi Aramco (2222.SE), opens new tab.
Aramco is forecast to have no performance-linked dividend this year after a more balanced 2024 cash cycle following earlier bumper results that backed the special payout, JPMorgan said in a research note on Friday.
The oil behemoth is slated to report its 2024 results on March 4.
On the other hand, ACWA Power Company (2082.SE), opens new tab was up 2.3%, on track to extend gains from the previous session.
ACWA to buy $693 million stakes in Kuwait and Bahrain assets from ENGIE (ENGIE.PA), opens new tab, covering operating capacities of 4.61 GW gas-fired power generation and 1.11 million cubic meters per day (m3/day) water desalination facilities.
Dubai's main share index (.DFGMI), opens new tab lost 0.5%, extending losses for a second session, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab declining 1.8%.
Elsewhere, district cooling services provider Empower (EMPOWER.DU), opens new tab gave up early gains to close 2.9% lower.
Empower and Dubai Multi Commodities Centre signed an agreement to supply the next phase of Uptown Dubai with sustainable district cooling services.
These movements may represent a healthy correction before the market resumes its upward trajectory, supported by recent positive results and strong growth projections for the year, said Joseph Dahrieh, Managing Principal at Tickmill.
However, construction and engineering company Drake & Scull International (DSI.DU), opens new tab advanced 1.8%, after winning contracts worth over 1 billion dirhams ($272.28 million) for the Arabian Hills project.
In Abu Dhabi, the index (.FTFADGI), opens new tab eased 0.2%.
The Qatari index (.QSI), opens new tab added 0.2%, helped by a 1.2% rise in Qatar Islamic Bank (QISB.QA), opens new tab.
Meanwhile, Qatar's Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani said on Sunday that six venture capital firms the investment authority has invested in as part of its "fund of funds" programme will open offices or regional headquarters in Qatar.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab closed 0.3% lower, hit by a 2.3% fall in EFG Holding Company (HRHO.CA), opens new tab.
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