GULF TIMES Bond Issuers with BUSINESS Minority-Run Banks
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GLOBALISING CURRENCY: Page 3 China central bank not to replace dollar with digital yuan Wednesday, April 21, 2021 Ramadan 9, 1442 AH DEBT UNDERWRITING: Page 7 BofA looks to link up GULF TIMES bond issuers with BUSINESS minority-run banks Commercial Bank Masraf Al Rayan is fi rst outlook revised from ‘stable to Qatari listed company to ‘positive’ by S&P recommend up to 100% S&P Global Ratings has revised its outlook from ‘stable’ to ‘positive’ on foreign ownership Commercial Bank while affirming its ‘BBB+/A-2’ long By Santhosh V Perumal of each company based on per- and short-term issuer credit Business Reporter centage ownership available to ratings. investors (local, regional and in- According to S&P, “Over ternational). the past few years, asraf Al Rayan has be- The (expected) increase (in Commercial Bank has de- come the fi rst listed en- the weight) translates into new risked its balance sheet Mtity to recommend up money coming to that stock and strengthened its risk to 100% foreign ownership, after mainly from international funds management.” the cabinet endorsed a plan that to match with the new weight of The ratings agency also off ered full foreign holding in the that company. highlighted the key role listed companies. “The decision to raise the per- of the Qatari authorities The bank “is the fi rst Qatari centage of foreign ownership in in providing support to listed company whose board of the shares of Qatari companies the bank, as stated in directors has approved the for- will positively aff ect the liquid- the report, “We classify eign ownership ceiling to 100% ity and trading in the market,” Commercial Bank as having after the honourable Council of al-Mansoori earlier said. high systemic importance Ministers decision in this re- Qatar is the fi rst country to and consider the authorities gard,” Qatar Stock Exchange have 100% FOL for all listed in Qatar highly supportive (QSE) chief executive Rashid bin fi rms. Since FOLs are a consid- of the country’s banking Ali al-Mansoori said in a tweet eration in the weight of stocks sector.” yesterday. in global emerging market indi- Commercial Bank Group Now that the Masraf Al Rayan ces, such as those managed by Chief Executive Officer board has approved up to 100% MSCI and FTSE, the increase in Joseph Abraham said, foreign ownership limit (FOL), a FOL will increase the weights of “This upward revision of proposal regarding amendment Qatari stocks in these indices, Commercial Bank from to Articles of Association has said Akber Khan, senior director stable to positive outlook to be discussed with the share- (Asset Management Group), Al by S&P reflects the holders by calling for an extraor- Rayan Investment. continued prudent economic dinary general assembly. The draft law, approved by the management by the State of Masraf Al Rayan, now in the Masraf Al Rayan has become the first listed entity to recommend up cabinet, includes the amend- Qatar and the Qatar Central midst of merging al khaliji with to 100% foreign ownership, after the cabinet endorsed a plan that ment of Article (7) of the law so Bank despite the challenges it, is one of the few entities that off ered full foreign holding in the listed companies. that non-Qatari investors can associated with Covid-19. saw signifi cant appreciation in own up to 100% of the capital of “For Commercial Bank, S&P’s its share value after the cabinet proved by the board of directors be the surviving entity, continu- Qatari shareholding companies positive outlook reflects the S&P Global Ratings has revised its outlook from ‘stable’ nod to allow up to 100% FOL of both banks and is expected to ing to operate as an Islamic bank. listed on the QSE. Bank’s improved quality of to ‘positive’ on Commercial Bank while affi rming its in the listed companies, a move be completed in the fi rst half of It is expected that after up Other than Masraf Al Rayan, earnings generation, strong ‘BBB+/A-2’ long and short-term issuer credit ratings. that ought to substantially en- 2021, subject to central bank and to100% FOL is implemented, Khan said Qatar Islamic Bank, capital and liquidity and the According to S&P, “Over the past few years, Commercial hance liquidity and trading in regulatory approvals. the weight of such entities in the Commercial Bank and QIIB are focused execution of our Bank has de-risked its balance sheet and strengthened the market. Upon the completion of the emerging market indices (MSCI expected to see the lion’s share five-year strategic plan.” its risk management” The merger of al khaliji with merger, al khaliji will be “dis- and FTSE) would increase as of infl ows that could be in excess Masraf Al Rayan has been ap- solved” and Masraf Al Rayan will the indices calculate the weight of $1.5bn. Oil traders buying back into Barwa Real Estate fi rst-quarter market’s bullish outlook Bloomberg For now, the US has become the juggernaut of New York the oil market. Driving on US interstates was higher net profi t rises 7% to QR190mn than 2019 levels in the week through April 11 for the first time since the pandemic began. American arwa Real Estate Group attained a net profi t well as in the Barahat Al-Janoub project, which is Signs of oil market strength are creeping back refiners processed the most crude in almost 13 of QR190mn in the fi rst quarter of 2021, a residential city for workers. as traders gear up for an expected rebound in months last week, while manufacturing gauges Ba 7% increase compared to the same pe- The two projects will enhance the levels of sup- consumption over the summer and supplies shrink continue to boom. With vehicle use in the UK also riod in 2020. The total assets of the group reached port for the partnership with the State of Qatar, in the North Sea. now climbing higher, optimism is growing that QR34bn, and total equity of shareholders reached as the two projects will be used as part of the or- Some of the market’s more esoteric gauges have vaccination programmes will help oil demand surge QR20bn in the same period. ganisational plans for the World Cup events. The surged in recent days, buoyed in part by a barrage over the summer. But even with a more positive As a result of the group’s success in developing development of the two projects is expected to be of strong consumption data in the US as well as outlook, the record spread of Covid-19 in countries a balanced real estate portfolio that helps to cope The total assets of the group completed in mid-2022. some of the heaviest maintenance in years at fields like India serves as a reminder that the path of with market fl uctuations, and despite the eff ects reached QR34bn, and total equity of The group is also working on the economic pumping benchmark North Sea supplies. recovery is unlikely to be smooth. of the Covid-19 pandemic on the global economy, shareholders reached QR20bn in the feasibility study of many development projects Brent futures are trading at their biggest premi- For now, though, refiners are slowly emerging the group has succeeded in boosting rental in- same period proposed by the Public Works Authority under um to the next month since early March – a bullish from seasonal maintenance work across the world, come, increasing it by 45%, which is a large per- the PPP system, and the group’s participation in structure known as backwardation that indicates bringing back millions of barrels of demand for centage that refl ects the size of planning and ef- the company’s operating revenues and the sus- any of these tenders will depend on its economic tight physical supply. Meanwhile swaps tied to the physical crude cargoes. fort made at all levels within the group to enhance tainable growth of the returns of its sharehold- viability and in line with the group’s development North Sea market that prices more than two-thirds With buyers returning, weekly swaps in the North sustainable growth in operating income. ers, including the third phase of Madinat Ma- strategy. Barwa will also continue to study its of the world’s crude have also jumped. Sea market are pointing to tighter supplies in the The company also succeeded in rationalis- water project, which began in August 2019 on a available land bank to determine its optimal use It’s the first meaningful sign of recovery since coming weeks. So-called contracts for diff erence ing its various expenses, which led to a decrease 418,000sq m land, off ering 118 showrooms, hy- to help support the fi nancial position of the group market bullishness evaporated last month. That are in a backwardation of 62 cents a barrel over the in general and administrative expenses by 21% permarkets, car service centres, a centre for sell- and contribute to the development of sustainable weakness came as refiners ate their way through a nearest six weeks, compared with 23 cents a month and also a decrease in net fi nancing costs by 9%, ing auto parts, and a showroom for a car dealer- returns. deluge of oil that had been stored up when prices ago, according to data from brokerage PVM Oil which contributed to the increase in the group’s ship. This phase is considered an extension of the The group is always keen to strengthen the collapsed last year, but there are now signs that Associates.