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
 Jul 28 2015 - Optibiotix completes study on cholesterol reducing capsuleProactiveInvestors - UK
(MENAFN - ProactiveInvestors)-- ADDS CHIEF EXECUTIVE COMMENT DETAIL AND SHARE PRICE Life sciences group Optibiotix (LON:OPTI) has completed a clinical study for its cholesterol reducing capsules with ...

 Jul 28 2015 - Most followed: GDP GKN Hikma Melrose Resources RSA Insurance supermarketsProactiveInvestors - UK
(MENAFN - ProactiveInvestors)Conspiracy theorists who reckon governments juice up the economy so an economic revival coincides with a General Election may have to have a rethink. Either that or the ...

 Jul 28 2015 - Mosman Oil raises £400000 for deposit on acquisitionProactiveInvestors - UK
(MENAFN - ProactiveInvestors)Mosman Oil and Gas (LON:MSMN) has raised £400000 from a placing to move forward the acquisition of a producing asset along and arrange for it to be ...

 Jul 28 2015 - Risers & Fallers including Edge Virgin Money Informa Dialight Royal Mail and more...ProactiveInvestors - UK
(MENAFN - ProactiveInvestors)Below are the main news-driven share price movements at 12.15pm. RISERS Edge Resources (LON:EDG) up 16.8%. The company raised C$500000 through a private placement with ...

 Jul 28 2015 - UAE Etisalat telecom's profit dives 40% in Q2AFP
(MENAFN - AFP) UAE telecom giant Etisalat said on Tuesday its net profit plunged 40 percent in the second quarter because of higher depreciation and the impact of its troubled Saudi unit ...

 Jul 28 2015 - UAE hikes petrol prices 24%, cuts diesel 29%AFP
(MENAFN - AFP) The United Arab Emirates will hike the retail price of petrol by 24 percent but prices will still be low by international standards, a government committee announced on Tuesday. From ...

 Jul 28 2015 - Saudi Sipchem suffers 55% net loss in Q2MENAFN
(MENAFN) Saudi International Petrochemical Co. (Sipchem), records 55 percent profit loss in the second quarter, Arab News reported. According to a report, the International Petrochemical net loss is ...

 Jul 28 2015 - Saudi- Low sales, high costs put Tasnee in lossKhaleej Times
(MENAFN - Khaleej Times) Saudi Arabia's National Industrialisation, or Tasnee, on Monday said it swung to a net loss for the second quarter, which the petrochemical producer blamed on lower product ...

 Jul 28 2015 - Flat growth in Abu Dhabi housing rentsKhaleej Times
(MENAFN - Khaleej Times) The housing market in Abu Dhabi saw flat growth in rents during the second quarter of the year, while remaining stable this quarter, according to real estate investment and ...

 Jul 28 2015 - UAE hikes petrol prices by over 22%Khaleej Times
(MENAFN - Khaleej Times) The UAE on Tuesday made foray into the new era of zero-subsidy regime for fuel prices in Gulf Cooperation Council by announcing new prices for August.A high-powered ...

more...


 






Google

 
 

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