S&P puts GFH on creditwatch
LONDON: Standard & Poor’s (S&P) has lowered long-term counterparty credit rating assigned to Gulf Finance House (GFH), the Bahrain-based Islamic investment bank, from BB+ to B+. S&P also affirmed the short-term rating of GFH at B. More importantly and perhaps of concern for GFH, S&P has placed the investment bank on Creditwatch with negative implications. The rationale for the revised ratings is based on S&P’s negative assessment of the bank’s financing and liquidity position and its ability to implement its restructured business model. GFH last year announced that it had raised $350 million in a capital raising exercise through a mixture of a rights issue, a partial sale of an equity stake and through a murabaha placement facility. This included the planned placement of a $100 million convertible Murabaha facility with Macquarie Group of Australia and the sale of non-core assets that so far has netted $50 million from the partial sale of Qinvest to QIB.
Citigroup gets license
KUALA LUMPUR: The Securities Commission Malaysia (SC) has approved Citigroup’s application to establish a stockbroking company in Malaysia. The license is one of the three stockbroking licenses that were available for leading foreign firms following the 2008 budget measures to strengthen Malaysia’s capital market and encourage greater intermediation of investment flows between the Middle East and Malaysia. Nomura, which was granted the first of the three licenses last year, has commenced its operations. “We continue to receive strong interest from leading international firms to set up operations in Malaysia including in the broking industry, indicating confidence on the prospects of our capital market,” SC Chairman Tan Sri Zarinah Anwar said.
Bursa Malaysia, BFX strike deal
MANAMA: Bursa Malaysia, world’s top exchange in terms of value of $17.6 billion sukuk listings in 2009, and Bahrain Financial Exchange (BFX) on Sunday inked a memorandum of understanding (MoU) to develop commercial relations between the two exchanges. The agreement will also help in providing financial products to Islamic market participants and strengthening bilateral ties between both organizations. Among others, the MoU will involve a feasibility study to identify products and market channels based on an already completed needs assessment for this market.
Sadafco OKs interim dividend
JEDDAH: The board of directors of Saudia Dairy & Foodstuff .Co (Sadafco) has decided to distribute an exceptional interim dividend for the nine-month period ending Dec. 31, 2009 of the 2009-10 financial year to the shareholders with a total amount of SR48.750 million, a SR1.5 per share to the shareholders registered in Tadawul records on the closing of the trading date Tuesday (Jan. 26).
Transparency award from BMG
JEDDAH: BMG Financial Group, the Jeddah-based financial advisory company, honored the most transparent companies on the Saudi Stock Exchange (Tadawul) last month with the BMG Transparency Award for the second year in a row. The BMG Transparency Award was launched in December 2007 as a first time initiative in the Kingdom, aimed at enhancing awareness, emphasizing the importance, and encouraging public companies to be forthcoming and open with market players.
Jazeera secures $105m financing
DUBAI: Kuwait’s Jazeera Airways said on Sunday it secured $105 million in financing for three new Airbus A320 aircraft. Jazeera, one of two listed airlines in the Gulf Arab region, said it had received financing from the European Export Credit Agencies and French investment bank Natixis.
Oman warns stock brokers
MUSCAT: Oman’s Capital Market Authority (CMA) on Sunday warned brokers not to leak the financial statements of listed companies before they are published. — Compiled by Arab News
