Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Saudi local debt sales seen surpassing int'l issues in '14   Join our daily free Newsletter

MENAFN - Arab Times - 21/01/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Arab Times) Companies in Saudi Arabia will favour local debt markets over international bond issues to meet their financing requirements in 2014 as high liquidity keeps funding costs down, a top executive at Deutsche Bank said. Saudi firms have increasingly looked to the local debt market in recent years to help diversify their funding sources away from bank loans, with ample liquidity in the domestic market often suppressing borrowing costs to levels well below rates for equivalent dollar-denominated bond sales. With interest rates on international markets expected to rise from historic lows as the US Federal Reserve begins to wind down its quantitative easing programme in 2014, the insulated Saudi market and its low borrowing costs are expected to remain attractive to the kingdom's issuers



"There is a lot of liquidity looking for a good home in Saudi Arabia. And importantly the Saudi market has developed comfort with long-term debt issues in Saudi riyals," Jamal al-Kishi, chief executive officer of Deutsche Securities Saudi Arabia, said. "We expect local debt market activity this year to surpass international bond sales by Saudi issuers," he said. The German lender is one of the more active international banks in the Gulf's largest economy, which is expected to open up its markets to foreign investors. Deutsche competes with HSBC and J.P. Morgan Chase Inc in arranging and advising companies and state-owned entities on their capital market needs in the kingdom



Deb

The bank earned 14.4 million in fees from arranging debt issues in the Middle East during 2013, second behind HSBC, which earned 15.4 million, according to Thomson Reuters. Construction firm Saudi Binladin Group and dairy producer Almarai were among the issuers of local currency Islamic bonds last year, while Deutsche Bank helped Sadara Chemical Co, a venture between Saudi Aramco and Dow Chemical, raise 7.5 billion riyals to fund construction of its facilities last March. A number of banks, including Saudi Hollandi Bank and Saudi British Bank, have also sold sukuk in the local market to improve their reserves after a period of loan growth. "For entities who do not have a lot of outstanding debt, issuing in the local debt market may prove less costly and more straightforward," Kishi said. Kishi expects measures will be taken in 2014 to open up Saudi Arabia's stock market to foreign investors



Saudi Arabia is the Arab world's biggest stock market and, by some measures, the world's last sizeable market that has not opened to international capital flows. Hopes of the market opening to direct foreign investment has prompted international banks to beef up their presence in the kingdom. "Saudi needs responsible long-term oriented capital that will bring technology and best practice to our industrial and service sectors," he said. While the Saudi government has been making technical preparations, it has never set a date for opening the market. The capital markets regulator in the kingdom has said that any market opening would take place only in a gradual manner. "Saudi Arabia does not need foreign capital per se but what we need is a responsible, enlightened capital that will come in and add qualitatively to the way our market opens," Kishi said




 


Arab Times




  MENA News Headlines
 Aug 3 2015 - GBM Gold pours first gold at Victorian projectProactiveInvestors - Australia
(MENAFN - ProactiveInvestors) GBM Gold (ASX:GBM) has poured first gold mined from its Victorian gold open pit near Dunolly from 2700 tonnes of ore. The ore was processed at the A1 gold processing ...

 Aug 3 2015 - Mobily Q2 net loss hits nearly USD215mMENAFN
(MENAFN) Saudi Etihad Etisalat (Mobily), suffered a net loss of USD215 million during the second quarter of this year as a result of dispute with Zain.The company Exposed to loss in the second ...

 Aug 3 2015 - Dubai spent USD46.2m for water transmission networksMENAFN
(MENAFN) Dubai Electricity and Water Authority (DEWA), launched major water transmission networks with a length of 25km. This project matches Dubai Plan 2021, which pursues economic development, ...

 Aug 3 2015 - GCC Foreign Ministers hold coordination meeting in DohaSaudi Press Agency
(MENAFN - Saudi Press Agency) Foreign Ministers of the countries of the Gulf Cooperation Council held here on Sunday evening a coordination meeting ahead of their joint meeting with US Secretary of ...

 Aug 3 2015 - Saudi Arabian Football Federation holds its regular meetingSaudi Press Agency
(MENAFN - Saudi Press Agency) The board of directors of the Saudi Arabian Football Federation held its regular meeting here on Sunday.During the meeting, the board discussed topics on the agenda and ...

 Aug 3 2015 - Abu Dhabi's Agthia net profit up 20 percent in H1MENAFN
(MENAFN) Food and beverage company Agthia Group net profit for the first half of 2015 rose 20 percent to USD34 million from the same period last year, driven by higher sales and improved margins.The ...

 Aug 3 2015 - Syrian jet crashes into market, 12 killedSaudi Press Agency
(MENAFN - Saudi Press Agency) At least 12 people were killed when a Syrian army fighter jet crashed into a busy marketplace in the opposition-held northwestern town of Ariha on Monday, a monitor ...

 Aug 3 2015 - Qatar's Emir Receives GCC Foreign MinistersSaudi Press Agency
(MENAFN - Saudi Press Agency) Sheikh Tamim bin Hamad Al Thani, Emir of the State of Qatar, received today the Gulf Cooperation Council (GCC) for Arab States' foreign ministers, currently on a visit ...

 Aug 3 2015 - US State Secretary Arrives in DohaQatar News Agency
(MENAFN - QNA) US Secretary of State John Kerry arrives in Doha on Sunday night to take part in a joint meeting with Their Excellencies the Foreign Ministers of the Gulf Cooperation Council (GCC) ...

 Aug 3 2015 - Russian Foreign Minister Arrives in DohaQatar News Agency
(MENAFN - QNA) Russian Foreign Minister Sergei Lavrov arrived in Doha on Sunday night on a visit to the State of Qatar. The Foreign Minister and his accompanying delegation were welcomed upon ...

more...


 






Google

Click to Apply

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help