HSBC gets license to buy Saudi stocks directly

Updated 15 June 2015
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HSBC gets license to buy Saudi stocks directly

DUBAI: HSBC Holdings has received a qualified foreign investor license in Saudi Arabia and traded shares on the bourse on Monday, the first day that direct foreign investment was allowed, the bank told Reuters.
Saudi Arabia's Capital Market Authority has not yet announced any license awards, but stock exchange Chief Executive Adel Al-Ghamdi told Reuters in London that the first transaction by a qualified foreign investor was due to take place on Monday. He did not name the investor.
"Today marks one of the most important moments in the history of Saudi financial markets and HSBC is pleased to have played a role in supporting their development," HSBC said in a written response to Reuters questions.
Previously, foreigners could only buy stocks in the $564 billion market, the largest in the Arab world, indirectly through channels such as swaps. Riyadh is opening the market as a way to expose companies to market discipline and diversify its economy beyond oil.
Two sources familiar with the matter said HSBC was the first institution to get a foreign investor licence and was trading with the identity code of 0001, supporting the idea it had received the first licence.
One of the sources added it had traded in blue-chip stocks, without detailing which ones or the size of the trades.
Al-Ghamdi also said regulators were processing six applications from "very large institutions" and "there might be a spike of involvement from foreign investors over the next two or three months".


Shareholders of India’s Jet Airways approve debt-for-equity swap

Updated 23 February 2019
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Shareholders of India’s Jet Airways approve debt-for-equity swap

  • The plan will mean the lenders will have a bigger holding than any other shareholder
  • Currently, Chairman Naresh Goyal owns a 51 percent stake in the company and Abu Dhabi’s Etihad Airways owns 24 percent

MUMBAI: India’s Jet Airways said late on Friday that its shareholders approved a plan to convert existing debt to equity, paving the way for the troubled company’s lenders to infuse funds and nominate directors to its board.
Jet’s board last week approved a plan by lenders, led by State Bank of India, for an equity infusion, debt restructuring and the sale or sale-and-lease-back of aircraft.
The plan will mean the lenders will have a bigger holding than any other shareholder.
Currently, Chairman Naresh Goyal owns a 51 percent stake in the company and Abu Dhabi’s Etihad Airways owns 24 percent.
Jet, which had net debt of 72.99 billion rupees ($1.03 billion) as of end-December, has debt payments looming next month, according to rating agency ICRA. It has been unable to pay pilots’ salaries and has outstanding bills to aircraft lessors.
The company, India’s biggest full-service carrier, is struggling with competition from budget rivals, high oil prices and a weaker rupee. The share price took a beating in 2018, losing nearly 70 percent of its value.
In a regulatory filing, Jet said on Friday that 98 percent of its shareholders voted to increase the share capital to 22 billion rupees ($309.8 million) from 2 billion rupees at a special meeting.
Jet, whose financial woes are set against the backdrop of wider aviation industry problems, has been in the red for four straight quarters.