Abu Dhabi’s Senaat sees ‘potential’ for bond next year

An event was held on Sunday to mark the listing of the first tranche of Senaat’s sukuk on the Abu Dhabi Securities Exchange and London Stock Exchange. (WAM)
Updated 10 December 2018
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Abu Dhabi’s Senaat sees ‘potential’ for bond next year

LONDON: Abu Dhabi’s Senaat sees potential to issue an additional bond next year, its CEO said on Sunday.

The state-owned investor in the industrial sector last month issued $300 million in sukuk, or Islamic bonds, according to reports. 

Jamal Al-Dhaheri, CEO of Senaat, said further bond issuances could be made next year. 

“Yes, there is potential (for 2019). We wanted to test the market and the response was very good,” Al-Dhaheri was quoted as saying by Reuters.

He was speaking at an event to mark the listing of the first tranche of Senaat’s sukuk, valued at $300 million, which is dually listed on the Abu Dhabi Securities Exchange and London Stock Exchange.

The sukuk was raised at a profit rate of 4.76 percent with a seven-year tenure, and saw demand from over 180 local and global investors, exceeding the coverage ratio by almost tenfold, state news agency WAM reported.

“The listing of the sukuk on the Abu Dhabi Securities Exchange is an important milestone in the company’s history. This is the first time the company has entered the public markets to issue sukuk that can be traded in one of the world’s leading financial markets,” Al-Dhaheri was quoted as saying.


US-China trade deal hopes grow as oil prices decline

Updated 29 min 16 sec ago
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US-China trade deal hopes grow as oil prices decline

  • Data suggested a smaller-than-expected fall in American crude inventories
  • Preparations underway for Donald Trump to meet Xi Jinping next week at the G20 summit in Osaka

LONDON: Oil prices declined on Wednesday as data suggested a smaller-than-expected fall in American crude inventories, as hopes for a US-China trade deal continue to grow.
Brent crude futures were down 51 cents at $61.72 a barrel.
US West Texas Intermediate crude fell 25 cents to $53.65 a barrel. On Tuesday, it had recorded its biggest daily rise since early January.
After weeks of swelling, US crude stocks fell by 812,000 barrels last week to 482 million, the American Petroleum Institute said on Tuesday, a smaller fall than the 1.1-million-barrel drop analysts had expected.
Official estimates on US crude stockpiles from the US government’s Energy Information Administration are due during afternoon trading.
US President Donald Trump offered some support, saying preparations were underway for him to meet Chinese President Xi Jinping next week at the G20 summit in Osaka, Japan, amid hopes a trade deal could be thrashed out between the two powers. Trump has repeatedly threatened China with tariffs since winning office in 2016.
European Central Bank President Mario Draghi also offered a boost, saying on Tuesday that he would ease policy again if inflation failed to accelerate.
Tensions remain high in the Middle East after last week’s tanker attacks. Fears of a confrontation between Iran and the US have mounted, with Washington blaming Tehran, which has denied any role.
Trump said he was prepared to take military action to stop Iran having a nuclear bomb but left open whether he would approve the use of force to protect Gulf oil supplies.
On Wednesday, oil markets shrugged off a rocket attack on a site in southern Iraq used by foreign oil companies.
“It is interesting to note that the crude oil futures market could not rally on hawks planting bombs in the Strait of Hormuz but could rally on doves planting quantitative easing,” Petromatrix’s Olivier Jakob said in a note.
“This is an oil market that doesn’t know how to react when an oil tanker blows up but knows how to react when the head of a central bank makes some noise.”
Members of the Organization of the Petroleum Exporting Countries have agreed to meet on July 1, followed by a meeting with non-OPEC allies on July 2, after weeks of wrangling over dates.
OPEC and its allies will discuss whether to extend a deal on cutting 1.2 million barrels per day of production that runs out this month.