Banque Misr to get largest syndicated loan in its history at $1bn, reports CNBC

Banque Misr to get largest syndicated loan in its history at $1bn, reports CNBC
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Updated 20 September 2021

Banque Misr to get largest syndicated loan in its history at $1bn, reports CNBC

Banque Misr to get largest syndicated loan in its history at $1bn, reports CNBC

RIYADH: Egypt's Banque Misr is in the process of obtaining the largest syndicated loan in its history — about $1 billion — to pay off financing obtained in 2018, banking sources told CNBC Arabia.

The second-largest governmental bank in the country in terms of assets is getting a record turnout by banks to provide financing, and will use the loan to pay off a $550 million financing obtained in December 2018, the sources said.

The bank's initial plan was to obtain the same amount of financing that it would have to pay back, but later raised the size of the loan amid a rush from banks to provide the joint sum.

Al Ahli Bank of Kuwait, Emirates NBD, First Abu Dhabi Bank and Standard Chartered are among the banks working as arrangers, private sources said.

Banque Misr deputy, Akef El Maghraby, has previously said the bank will launch a number of funds by the end of this year in the real estate, health and FinTech sectors.

Going digital

Meanwhile, Banque Misr plans to launch Egypt’s first digital bank by the first quarter of 2022, El Maghraby told Masrawy on Sunday.

The Central Bank of Egypt is still working on a regulatory framework governing digital banks, he said.

Misr Digital Innovation, a subsidiary of Banque Misr set up last year to launch the bank, has signed a seven-year partnership agreement with Visa that will see it issue the iconic branded cards, use its APIs, and work with it on marketing and design, the company said in a separate statement.


Gulf nations ranked in world’s best places to live and work: HSBC report

Gulf nations ranked in world’s best places to live and work: HSBC report
Getty Images
Updated 11 sec ago

Gulf nations ranked in world’s best places to live and work: HSBC report

Gulf nations ranked in world’s best places to live and work: HSBC report

Three Gulf countries are among the top 10 best places to live in the world for expats, with UAE climbing 10 places to secure the 4th position, while Bahrain ranked 8th and Qatar took the 10th position. 

Switzerland retained its position as the number one place expats rated to live, while Australia came second, according to HSBC's 14th annual Expat Explorer study. 

Saudi Arabia was ranked 39th globally, out of the 48 places. 

Quality of life in the UAE constituted the main reason that makes expats stay longer. 

Chief executive officer of HSBC at UAE, Abdulfattah Sharaf said “The overwhelming sense of optimism from expats in the UAE about the 12 months ahead is reflective of the quick response from authorities to tackle the social and economic impact of the pandemic.”

The survey looked at people’s salaries, career growth potential, job security and savings, but it also asked people about social issues. 


Aramco Oil Pipeline to raise multi-billion dollar bonds: Bloomberg

Aramco Oil Pipeline to raise multi-billion dollar bonds: Bloomberg
Updated 6 min 9 sec ago

Aramco Oil Pipeline to raise multi-billion dollar bonds: Bloomberg

Aramco Oil Pipeline to raise multi-billion dollar bonds: Bloomberg

RIYADH: A consortium of investors in Saudi Aramco's oil pipelines, led by Washington-based EIG, is preparing to sell billions of dollars of bonds as soon as this week, Bloomberg reported citing people familiar with the matter.

The consortium may raise at least $4.5 billion of bonds, three of the people said. The aim is to refinance a loan of about $10.5 billion taken on to fund the pipeline investment. 

Citigroup Inc. and JPMorgan Chase & Co. will be among the banks managing the sale, the people said, asking not to be named for matters of privacy.

China’s Silk Road Fund and Abu Dhabi sovereign wealth fund Mubadala Investment Co. were also part of the consortium that paid $12.4 billion for a 49 percent stake in an Aramco subsidiary that has leasing rights over the pipelines. The deal was completed in June.

Aramco is looking for new ways to raise cash to maintain a $75 billion dividend and complete huge investment plans, Bloomberg said.


TASI crosses 11,800 point mark in early trade

TASI crosses 11,800 point mark in early trade
Image: Shutterstock
Updated 20 min 6 sec ago

TASI crosses 11,800 point mark in early trade

TASI crosses 11,800 point mark in early trade

The Tadawul All Share Index, TASI, rose by 0.4 percent to surge past the 11,800 point level in early trade today. 

Turnover reached SR1.6 billion ($430m) during the period. 

Al Rajhi Bank rose more than 1 percent. 

Etihad Etisalat (Mobily) gained 2 percent to SR30.85 in a boost to the stock after it reported net profit after Zakat and tax of SR751 million for the first nine months of 2021.

SABIC Agri-Nutrients, Mouwasat, Dar Al Arkan and SGS increased between 1 and 3 percent. 

Here’s a wrap of market movements as of 10:30 a.m. Riyadh time:

Yamama Cement Co. net profit was down 36 percent to SR172.5 million for the first nine months of 2021. 

Fawaz Alhokair Co. and Arabian Centres Co. acquired 51 percent of VogaCloset. 

Saudi Paper board recommends capital increase through SR145 million rights issue.

Saudi Arabian Amiantit Co. announced the resignation of board member, Khalil Abdulfatah Kurdi.

 

 


'SGI signals a new era for mankind': How the Saudi Green Initiative Forum could change the world

'SGI signals a new era for mankind': How the Saudi Green Initiative Forum could change the world
Updated 19 October 2021

'SGI signals a new era for mankind': How the Saudi Green Initiative Forum could change the world

'SGI signals a new era for mankind': How the Saudi Green Initiative Forum could change the world
  • "We reject the false choice between preserving the economy and protecting the environment," says Crown Prince Mohammed Bin Salman

Since the early part of the last century, the image and fortunes of Saudi Arabia have been inextricably linked to a single element. The discovery and exploitation of oil transformed life in the KSA and positioned the country front and center in the petrol-driven global economy.

But times have changed over the last two decades. There is a recognition that oil and its derivatives, such as plastic and petrochemicals, are a primary cause of global warming, pollution and environmental catastrophe. In the KSA, air pollution from greenhouse gases shortens life expectancy by 1.5 years, while desertification and dust storms cause $13 billion of damage per year.

This bleak picture is a wake-up call, triggering a seismic shift across the world, away from carbon-sourced energy and hyper-consumption towards a cleaner and more sustainable way of life.

An energy leader for decades, the KSA is now positioning itself at the vanguard of environmental action. This effort is encapsulated in the Saudi Green Initiative (SGI) – a national program to combat pollution and land degradation, increase vegetation cover, reduce carbon emissions and preserve marine life.

“The Kingdom fully recognizes its share of responsibility in advancing the fight against the climate crisis. Just as the Kingdom underpinned energy markets during the oil and gas era, it is going to become a global leader in forging a greener world,” says Crown Prince Mohammed Bin Salman, patron of the SGI.

Having introduced the concept of the Circular Carbon Economy (a closed-loop system involving ‘4Rs’: reduce, reuse, recycle and remove) during its presidency of the G20 summit last year, Saudi Arabia is again taking a leadership role by hosting the forthcoming SGI Forum, to be held in Riyadh on 23-24 November.

The forum will, in its own words, “catalyze climate action in a regionally and internationally coordinated manner . . . bring together heads of state, public officials, business leaders, academic pioneers and environmental specialists. . . and drive action and spark innovative solutions to help tackle climate change.”

The event will help to define a road map that seeks to rally the Gulf region and contribute to agreed global targets by confronting climate change, increasing the use of clean energy, offsetting the impact of fossil fuels and protecting the environment.

The SGI is hugely ambitious. Ten billion trees are to be planted in the Kingdom over the next decade, rehabilitating some 40 million hectares of degraded land and bringing about a 12-fold increase from current tree covers. This is equal to four percent of the global initiative to limit the degradation of land, and one percent of the target to plant one trillion trees globally.

The percentage of protected areas in Saudi Arabia will reach over 30 percent of total land – about 600,000 square kilometers — exceeding the global target of 17 percent. Carbon emissions will be reduced by 130 million tons brought about by a plan to generate 50 percent of the Kingdom’s energy from renewables by 2030; and landfills – where 95 percent of waste is currently deposited — will be reduced to only five percent of waste.

In fact, the very notion of ‘garbage’ will become largely a thing of the past, as every form of waste becomes the raw material for a value-added product or energy source, in what is a key part of the ‘circular economy’ concept.

The SGI will work in tandem with the broader Middle East Green Initiative, which includes all GCC states along with other regional countries. The overall goal is to plant 50 billion trees across the Middle East — the largest reforestation program in the world, restoring 200 million hectares of degraded land. Carbon emissions from the region are to be reduced by over 60 percent, equal to more than 10 percent of the intended global reduction.

While Saudi citizens are used to a comfortable life of big cars and disposable products, it is clear that the SGI is already having a profound cultural impact.

“I think the SGI will open up a whole new era for mankind,” Ziyad Al Shiha, chief executive of the Saudi Investment Recycling Company, a leading agency in the circular economy, told Arab News.

“We're at a turning point now and it’s part of a major shift in the world economy. We are putting investment on the ground, working with corporations, small and medium-sized enterprises and with individuals — anything that will contribute to the circular economy.”

The greening of Saudi Arabia will involve changes to the daily lives of ordinary people, and an entirely new mindset. It will be young people, in particular, who forge a new path away from the habits of the past few decades.

“The SGI is an initiative by our government for a greener future for Saudi and the Middle East,” Fatimah Ahmad, an executive at the $500 billion NEOM megacity project, told Arab News.

She added: “The KSA is taking the lead to protect tomorrow from the climate change crisis. It’s one of the Vision 2030 projects I am personally excited about. It’s an ambitious, wild dream and I am sure it will come true very soon.”

Cynical voices might say that the decline of the oil era, and the global transition to a greener way of life, will have a detrimental effect upon the economy and standard of living in Saudi Arabia.

But Crown Prince Mohammed Bin Salman has a more positive outlook. “We reject the false choice between preserving the economy and protecting the environment,” he declared when launching the SGI in March.

He added: “Climate action will enhance competitiveness, spark innovation, and create millions of high-quality jobs. Young people, both in the Kingdom and the world, are demanding a cleaner, greener and more inclusive future, and we owe it to them to deliver on this.”

The SGI Forum will no doubt generate more ideas, greater awareness and practical solutions in the drive towards a sustainable future in Saudi Arabia and across the world.


Fertiglobe IPO on track for $6 billion valuation as share subscription ends

Fertiglobe IPO on track for $6 billion valuation as share subscription ends
Updated 19 October 2021

Fertiglobe IPO on track for $6 billion valuation as share subscription ends

Fertiglobe IPO on track for $6 billion valuation as share subscription ends
  • The firm, a joint venture between Abu Dhabi National Oil Co and chemical producer OCI formed in 2019, plans to raise between $765 million and $827 million giving it a valuation of $5.5 billion and $6 billion.

Demand for shares in fertilizer group Fertiglobe ended on Monday, with 114.6 million shares allocated on the Abu Dhabi stock market, and the firm on track for a $6 billion valuation, Al-Arabiya reported.

The firm, a joint venture between Abu Dhabi National Oil Co and chemical producer OCI formed in 2019, plans to raise between $765 million and $827 million giving it a valuation of $5.5 billion and $6 billion.

It has set a price range of 2.45 to 2.65 dirhams for the stock, with Al-Arabiya reporting it is on track to price its shares at the top of the range, citing unnamed sources.

The amount of shares allocated is equivalent to 13.8 percent of the business.

Subscription for Fertiglobe shares began on 13 October, with two tranches, of stock offered to investors.

Final pricing of the stock will be set on 20 October, with shares scheduled to start trading on the Abu Dhabi Securities Exchange on 27 October, according to a company statement.