Oman scores bumper bond sale as investors shelve debt worries

Oman scores bumper bond sale as investors shelve debt worries
General view of Oman's capital Muscat. (Reuters)
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Updated 10 June 2021

Oman scores bumper bond sale as investors shelve debt worries

Oman scores bumper bond sale as investors shelve debt worries
  • Morgan Stanley said on Wednesday it prefers Oman, among the best performers on the Emerging Markets Bond Index, over Bahrain — the only other “junk” rated Gulf country

LONDON: Oman saw bumper demand in its first dollar-denominated sukuk sale since 2018 this week, as the rise in oil prices over the last year and a fiscal consolidation plan allayed investors’ concerns about a break-neck rise in debt levels.
The $1.75 billion nine-year sukuk drew over $11.5 billion in demand.
The sukuk were up about one cent on the dollar on Wednesday in the so-called grey market, market sources said. An S&P Global model called the Market Derived Signal Score shows that for the first time in more than two years, credit default swaps were not pricing a credit rating downgrade for Oman.
“They have set fairly cautious oil price assumptions, at $45 a barrel for this year, and $50 thereafter. But they have a plan to balance the budget at $50 by 2025,” said Timothy Ash at BlueBay Asset Management, adding he now sees Oman as an improving credit story.
He said he expected its budget to outperform given higher oil prices, with Brent crude at over $72 on Wednesday.
“Recent demonstrations have underlined that reforms are not easy, but we see real commitment to reform, but also to improve transparency, which is really encouraging from an investor perspective,” Ash said.
Last month Oman saw hundreds of Omani men protest demanding jobs, handing its new ruler Sheikh Sultan his biggest challenge since taking the throne last year following the death of Sultan Qaboos — in power for five decades.
Morgan Stanley said on Wednesday it prefers Oman, among the best performers on the Emerging Markets Bond Index, over Bahrain — the only other “junk” rated Gulf country.
“While we have tempered our optimism with the rally, we maintain a positive bias and think that it’s too early to cut exposure as fiscal consolidation should remain on track,” Morgan Stanley said in a research note.
Oman faced what bankers called lacklustre demand when it tapped the debt markets last year, but the consolidation plan and oil price recovery helped Oman become the first Gulf sovereign to issue bonds in January, raising $3.25 billion with conventional bonds sold out of a $15 billion orderbook.
“With the latest issue Oman has refinanced bonds expiring in 2021 and the current public deficit... allowing the government to concentrate on the budget deficit consolidation,” said Raffaele Bertoni, head of debt capital markets at Gulf Investment Corporation.


Saudi National Development Fund targets infrastructure projects

Saudi National Development Fund targets infrastructure projects
Updated 15 June 2021

Saudi National Development Fund targets infrastructure projects

Saudi National Development Fund targets infrastructure projects
  • The capital of the new fund could "reach several billion royals"

RIYADH: The Saudi National Development Fund is preparing to launch a new fund targeting infrastructure projects in the Kingdom.
The capital of the new fund could "reach several billion royals", Asharq Business reported, citing unidentified sources.
Muhammad bin Mazyad Al-Tuwaijri, deputy chairman of the National Development Fund said in February that the Kingdom had started to work  on the launch of an infrastructure fund.
Saudi Arabia launched an ambitious SR12 trillion ($3.2 trillion) program in March to boost the role of the private sector in diversifying the economy.
Under the 'Shareek program', private sector businesses will be helped to invest SR5 trillion between now and 2030, along with SR3 trillion from the country's sovereign wealth fund, the Public Investment Fund (PIF), and SR4 trillion as part of a new national investment strategy.

 


Omani Octal said to weigh $800m majority stake sale

Omani Octal said to weigh $800m majority stake sale
Updated 15 June 2021

Omani Octal said to weigh $800m majority stake sale

Omani Octal said to weigh $800m majority stake sale
  • A sale could value Octal at about $800 million

RIYADH: Octal, an Omani plastics packaging manufacturer, is considering a majority stake sale, Bloomberg reported citing people familiar with the matter.
A sale could value Octal at about $800 million, one of the people said. The company is working with JPMorgan Chase & Co., the people said, asking not to be identified for information confidentiality.  
The Muscat-based company has already attracted strategic suitors in Asia and the US, they said.
Octal was founded in 2006 and produces plastic used to package food and consumer products. The company is present in Oman, Saudi Arabia and the US and ships its products to more than 75 countries, according to its website.
The potential sale would add to the $96 billion of deals targeting companies in the Middle East and Africa this year, according to data compiled by Bloomberg.


Egypt clothing exports hit by surging shipping costs

Egypt clothing exports hit by surging shipping costs
Updated 15 June 2021

Egypt clothing exports hit by surging shipping costs

Egypt clothing exports hit by surging shipping costs
  • Rising container costs are affecting both their imports of raw material as well as their export of finished garments according to Mohamed Kassem

RIYADH: Egyptian clothing manufacturers are being hammered by surging shipping costs.

Rising container costs are affecting both their imports of raw material as well as their export of finished garments according to Mohamed Kassem, a member of the Egyptian Exporters Association.

Fabrics from China account for most of the country’s clothing exports, he told Al Arabiya.
The cost of shipping a 40-feet container from Shanghai to an Egyptian port has rocketed to as much as $14,000 compared to $2,500 before the pandemic, he said.
That has led to increased competitive pressures for Egyptian textiles exporters from rivals in Asia.
He called on the state to intervene to help support the industry.


Indian shares close at record highs as pandemic curbs ease, cases fall

Indian shares close at record highs as pandemic curbs ease, cases fall
Updated 15 June 2021

Indian shares close at record highs as pandemic curbs ease, cases fall

Indian shares close at record highs as pandemic curbs ease, cases fall
  • Many Indian states eased coronavirus restrictions on Monday, including the national capital New Delhi, where authorities allowed shops and malls to open as the number of new cases dropped to the lowest in more than two months

BENGALURU: Indian shares ended at record highs on Tuesday, as declining COVID-19 infections prompted many states to re-open businesses, with a rally in broader markets also helping the sentiment.
The blue-chip NSE Nifty 50 index rose 0.36 percent to 15,869.25 and the benchmark S&P BSE Sensex climbed 0.42 percent to 52,773.05 at close.
Many Indian states eased coronavirus restrictions on Monday, including the national capital New Delhi, where authorities allowed shops and malls to open as the number of new cases dropped to the lowest in more than two months.
India on Tuesday reported 60,471 new infections, the lowest since March 31.
The sentiment also tracked global stocks that hit a record high, as investors bet likely “transitory” inflation pressures will restrain the US Federal Reserve from signalling a shift in policy settings.
Many investors expect the Fed to maintain its dovish stance at its two-day meeting starting on Tuesday. Some board members, however, have said the central bank should start discussing tapering its bond buying.
In Mumbai trading, financial stocks provided a boost to the Nifty 50, with ICICI Bank and HDFC Bank ending 1.6 percent and 0.7 percent higher, respectively.
The Nifty Bank Index and the Nifty Private Bank Index, which have so far gained more than 0.55 percent this week, were among the top performers across sub-indexes rising between 0.85 percent and 1.07 percent.
Software services firm Infosys rose 0.8 percent, lifting the Nifty IT index by 0.23 percent.
Shares of Future Retail closed 10 percent higher, after staying at those levels since early trade.


Abu Dhabi’s Eagle Hills ready to open biggest water park in Jordan

Abu Dhabi’s Eagle Hills ready to open biggest water park in Jordan
Updated 15 June 2021

Abu Dhabi’s Eagle Hills ready to open biggest water park in Jordan

Abu Dhabi’s Eagle Hills ready to open biggest water park in Jordan
  • It will open on July 3
  • The park was developed by Abu Dhabi-headquartered Eagle Hills, one of the largest developers in Jordan

DUBAI: The Saraya Aqaba Waterpark – billed as the biggest in Jordan – is opening its doors on July 3.
Located in the country’s only coastal city, Aqaba, the park spans an area of more than 28,500 square meters. It has rides, slides, as well as food and beverage stalls.
“At Saraya Aqaba Waterpark, guests from all around the world are in for an aquatic adventure like no other with slides, rides and experiences suitable for guests of all ages,” Chris Van Der Merwe, its general manager said in a statement.
The park was developed by Abu Dhabi-headquartered Eagle Hills, one of the largest developers in Jordan, and is operated by Abu Dhabi-based Farah Experience, which also handles Ferrari World Abu Dhabi.
Theme parks and other physical attractions have taken a hit when the pandemic forced countries to restrict people’s mobility, however some are now welcoming guests again as attractions make a gradual return.