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.


Fujairah joins other ports, tightens exhaust rules ahead of 2020 regulations

Updated 2 min 9 sec ago
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Fujairah joins other ports, tightens exhaust rules ahead of 2020 regulations

  • Under International Maritime Organization (IMO) rules that come into effect from 2020, ships will have to reduce the sulfur content in their fuel to less than 0.5 percent
  • Singapore, China and Fujairah marine sales volumes represent a quarter of global ship refueling, also known as bunkering

SINGAPORE: Fujairah in the UAE has become the latest major port to ban a type of fuel exhaust cleaning system to comply with a coming tightening in rules regarding global sulfur emissions, mirroring similar moves in Singapore and China.
Under International Maritime Organization (IMO) rules that come into effect from 2020, ships will have to reduce the sulfur content in their fuel to less than 0.5 percent, compared with 3.5 percent now, forcing huge changes upon global shippers and also oil refiners.
Fujairah’s harbor master said in a faxed document seen by Reuters that the port “has decided to ban the use of open-loop scrubbers in its waters ... (and) ships will have to use compliant fuel once the IMO 2020 sulfur cap comes into force.”
This follows top marine fueling port of Singapore announcing a similar move in November, while China banned the use of open-loop scrubbers from Jan. 1, 2019.
Singapore, China and Fujairah marine sales volumes represent a quarter of global ship refueling, also known as bunkering.
Impact for shippers
To comply with IMO 2020 rules, shippers can switch to burning cleaner but more expensive oil, invest in exhaust cleaning systems known as scrubbers that may allow them to still use cheaper high-sulfur fuels, or redesign vessels to run on alternatives like liquefied natural gas (LNG).
Scrubbers use water to clean up fuel emissions, preventing them from being released into the atmosphere.
Open-loop scrubbers are the cheapest option, but they have come under criticism as they wash heavy metals and sulfur from the waste water into seas instead of storing it for a controlled discharge in ports, as closed-loop scrubbers do.
Of the more than 2,000 ships that have so far opted to invest in scrubbers, around three-quarters have installed the cheaper, open-loop type, shipping sources estimated.
Closed-loop scrubbers, which store wash water for later discharge, are still accepted in most ports.
Despite the spreading bans of open-loop scrubbers, Douglas Raitt of ship classifier Lloyd’s Register said vessels can still benefit from such systems as they can pump out the waste water in open seas, outside a port’s jurisdiction.
“The benefits of open-loop scrubbers are largely realized in open water during transit from one port to the next,” he said.
Raitt said shippers, however, should consider alternative measures to prepare for IMO 2020, considering that when the new rules come into force refueling infrastructure will be mostly geared toward compliant low sulfur fuel oil (LSFO) rather than high sulfur fuel oil (HSFO).
“Prevailing wisdom would be for operators opting for scrubbers to have a meaningful dialogue with their supplier base to secure HSFO post-2020 in ports of call,” Raitt said.