KSA debt capital marketbenefits to be discussed

Updated 07 April 2013
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KSA debt capital marketbenefits to be discussed

A forum by Standard & Poor’s, the world's major provider of independent credit risk research, analytics and benchmarks, will explore the role of rating agencies in supporting the development of Saudi Arabia’s debt capital markets. The event is set to take place in Riyadh on Tuesday (April 9).
It will discuss the opportunities and challenges of conventional and Islamic bond issuance in the context of key rating analytical, process and criteria developments. It is sponsored by the Capital Market Authority (CMA) of Saudi Arabia and the Institute of Banking (IOB), and supported by the Gulf Bond and Sukuk Association (GBSA),
The event is designed for CEOs, CFOs, treasurers, advisers, bankers, financial intermediaries and institutional investors.
Stuart Anderson, managing director and regional head, Middle East at Standard & Poor’s said: “The development of Saudi Arabia’s debt capital markets is playing an important role in the effective allocation of capital in supporting broad economic growth. Further development of debt capital markets, including greater sukuk issuance, is a key to supporting the Kingdom’s extensive investment plans and infrastructure projects. Against this background, we see the S&P Forum in Riyadh as an important event that will generate valuable insights on how ratings can support the growth of a deep and liquid debt capital market.”
He added: “Ratings greatly enhance the transparency and efficiency of debt capital markets, generating greater local, regional and global exposure for issuers, and contributing significantly to their development and diversification for the benefit of investors and financial market intermediaries.”
A panel of senior industry experts will discuss the Saudi funding environment and implications for balance sheet structuring. Panelists include senior executives from Saudi Basic Industries Corporation, Ernst & Young, JP Morgan and Al Bilad Investment Company.
Hugh Baxter, S&P’s vice president and global head of client business management, will speak on the relevance of ratings to the development of financial markets. Other S&P officials who will address the forum include Kai Stukenbrock and Andreas Kindahl, both senior directors, and Emmanuel Volland and David Anthony, both directors.


OPEC oil ministers gather to discuss production increase

Updated 19 June 2018
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OPEC oil ministers gather to discuss production increase

  • Analysts expect the group to discuss an increase in production of about 1 million barrels a day
  • The officials were arriving in Vienna ahead of the official meeting Friday

VIENNA: The oil ministers of the OPEC cartel were gathering Tuesday to discuss this week whether to increase production of crude and help limit a rise in global energy prices.
The officials were arriving in Vienna ahead of the official meeting Friday, when they will also confer with Russia, a non-OPEC country that since late 2016 has cooperated with the cartel to limit production.
Analysts expect the group to discuss an increase in production of about 1 million barrels a day, ending the output cut agreed on in 2016.
The cut has since then pushed up the price of crude oil by about 50 percent. The US benchmark in May hit its highest level in three and half years, at $72.35 a barrel.
Upon arriving, the energy minister of the United Arab Emirates, Suhail Al Mazrouei, said: “It’s going to be hopefully a good meeting. We look forward to having this gathering with OPEC and non-OPEC.”
The 14 countries in the Organization of the Petroleum Exporting Countries make more money with higher prices, but are mindful of the fact that more expensive crude can encourage a shift to renewable resources and hurt demand.
“Consumers as well as businesses will be hoping that this week’s OPEC meeting succeeds in keeping a lid on prices, and in so doing calling a halt to a period which has seen a steady rise in fuel costs,” said Michael Hewson, chief market analyst at CMC Markets UK
The rise in the cost of oil has been a key factor in driving up consumer price inflation in major economies like the US and Europe in recent months.
Already US President Donald Trump has called on OPEC to cut production, tweeting in April and again this month that “OPEC is at it again” by allowing oil prices to rise.
Within OPEC, an increase in output will not affect all countries equally. While Saudi Arabia, the cartel’s biggest producer, is seen to be open to a rise in production, other countries cannot afford to do so. Those include Iran and Venezuela, whose industries are stymied either by international sanctions or domestic turmoil. Iran is a fierce regional rival to Saudi Arabia, meaning the OPEC deal could also influence the geopolitics in the Middle East.