Saudi Purge Claims Its Latest Corporate Victim As Kingdom Holdings Sees $1.3 Billion Bank Deal Collapse
For the past couple of weeks we've written frequently about the sudden political turmoil in Saudi Arabia that resulted in two Saudi princes being killed in a span of just 24 hours and dozens others being detained on charges of corruption while having their bank accounts frozen. Here are couple of our most recent background posts on the topic: The Saudi Purge: The Middle-East Is On The Verge Of A New War If The Saudi Arabia Situation Doesn't Worry You, You're Not Paying Attention Now, per an exclusive report from Reuters, it appears as though the latest casualty of the Saudi shakeup is a financing deal sought by the $8 billion dollar Kingdom Holdings which is owned and run by Prince Alwaleed bin Talal...at least until he was recently arrested that is. Kingdom Holding’s plan to borrow money to fund new investments has stalled because owner Prince Alwaleed bin Talal has been detained in Saudi Arabia’s anti-corruption crackdown, according to four banking sources familiar with the matter. Kingdom 4280.SE had approached banks to obtain the loan, but the financing plan has been held up because the lenders are worried about potential repercussions if they lend to the prince’s company, the sources said. One of the sources, who was approached for the loan, said it would have been worth roughly 5 billion riyals ($1.3 billion). For those who aren't familiar with the company, Kingdom Holdings is a leading Saudi investment firm with stakes in prime real estate including New York’s Plaza Hotel and London’s Savoy Hotel. The busted bank deal apparently surfaced after Kingdom Holdings attempted to pledge an equity position it recently acquired in Banque Saudi Fransi as collateral for a new $1.3 billion loan but several banks balked until the charges levied against Prince Alwaleed bin Talal were resolved. Kingdom completed the acquisition of a 16.2 percent stake in local lender Banque Saudi Fransi (BSF) 1050.SE in September, buying about half of France’s Credit Agricole stake in BSF for 5.76 billion riyals. The company approached banks to obtain a loan that would have been secured by its BSF stake, as the company wanted to leverage the newly acquired shares in order to make new investments, according to the sources. One of the four sources, a senior banker at a Saudi financial institution, said the loan deal would not go ahead until the situation facing the prince was resolved. Of course, Kingdom Holdings is likely not the only Saudi company finding it difficult to tap debt markets these days as Moody's recently warned that a prolonged freeze of bank accounts could "damage corporate credit quality" all across the country. Eight Saudi and international bankers, including the four sources, said in addition to the Kingdom loan, a range of other transactions involving clients who are directly or indirectly involved in the detentions had also been put on hold. Banks have not reached the point of recalling existing loans, but they have increased the level of scrutiny for some new financing, the bankers said. In a report last week, debt rating agency Moody’s said a prolonged freeze of bank accounts in Saudi Arabia could damage corporate credit quality in the kingdom because large depositors were often large borrowers and business owners. “Saudi Arabia’s corporate sector remains dominated by unlisted family-owned businesses with uneven governance and disclosures and frequent intermingling of individual and corporate activities, which ultimately could expose corporates to these individuals’ frozen accounts,” Moody’s said. Meanwhile, despite assurances from the Riyadh government that the economy would not suffer from the country's political turmoil "because investigators are targeting only individuals, not their companies," Kingdom Holdings shareholders don't seem to be convinced...
Crédit Agricole's Sale Of Shares In Banque Saudi Fransi Is A Taste Of Things To Come In The Kingdom
The decision by the French bank to sell most of its holding in the Saudi lender could soon be followed by at least one other European firm offloading its stake in a local bank.
Второй по величине активов банк Франции, акции которого торгуются на бирже, Credit Agricole заявил, что продаст 16,2%-ную долю в кредиторе из Саудовской Аравии Banque Saudi Fransi (BSF). При этом в роли покупателя выступит Kingdom Holding Company, которая заплатит за долю 5,8 млрд риялов ($1,55 млрд). Ожидается, что сделка будет завершена до конца второго полугодия. Credit Agricole сообщил, что сохранит 14,9% акций Banque Saudi Fransi в своем распоряжении, однако отметил, что рассматривает возможность продажи еще 5% бумаг кредитора.
The Kingdom Holding Company, run by Saudi billionaire Prince Alwaleed bin Talal, says it will acquire from Credit Agricole a 16.2 percent stake in Banque Saudi Fransi in a deal valued at around $1.5 billion (5.8 billion riyals).
По сведениям из осведомленного источника, второй по величине активов банк Франции, акции которого торгуются на бирже, Credit Agricole рассматривает возможность продажи части своей 31%-ной доли в кредиторе из Саудовской Аравии Banque Saudi Fransi. Как сообщает источник, французский банк уже начал переговоры с потенциальными покупателями и в будущем может рассмотреть вопрос продажи еще большего числа акций арабского кредитора. Стоит отметить, что ранее Credit Agricole намеревался продать всю свою долю в капитале Banque Saudi Fransi, стоимость которой составляет около $2,6 млрд.
Саудовская Аравия собирается уйти от зависимости от нефтяных доходов, диверсифицировав свою экономику и открыв ее для иностранных инвестиций. И сейчас самое время для того, чтобы делать инвестиции в банковский сектор королевства, тем более что существенные доли двух саудовских банков уже выставлены на продажу.
Saudi Arabia stocks were lower after the close on Sunday, as losses in the Real Estate Development, Insurance and Industrial Investment sectors led shares lower. At the close in Saudi Arabia, the Tadawul All Share fell 6.86% to hit a new 6-months low. The best performers of the session on the Tadawul All Share were Alinma Tokio Marine Co (SE:8312), which rose 2.36% or 0.47 points to trade at 20.35 at the close. Meanwhile, The Saudi British Bank (SE:1060) fell 0.63% or 0.20 points to end at 31.70 and Banque Saudi Fransi (SE:1050) was down 1.27% or 0.41 points to 31.90 in late trade. The worst performers of the session were Anb Insurance (SE:8011), which fell 10.00% or 5.20 points to trade at 46.80 at the close. Saudi Industrial Development Co. (SE:2130) declined 9.98% or 1.27 points to end at 11.45 and Tourism Enterprise Co. (SE:4170) was down 9.97% or 3.62 points to 32.70. Falling stocks outnumbered advancing ones on the Saudi Arabia Stock Exchange by 165 to 1. Shares in The Saudi British Bank (SE:1060) fell to 52-week lows; down 0.63% or 0.20 to 31.70. Shares in Saudi Industrial Development Co. (SE:2130) fell to 3-years lows; falling 9.98% or 1.27 to 11.45. Shares in Tourism Enterprise Co. (SE:4170) fell to 3-years lows; down 9.97% or 3.62 to 32.70. Crude oil for October delivery was down 2.63% or 1.08 to $40.23 a barrel. Elsewhere in commodities trading, Brent oil for delivery in October fell 2.81% or 1.31 to hit $45.31 a barrel, while the December Gold contract rose 0.63% or 7.30 to trade at $1160.50 a troy ounce. EUR/SAR was up 1.30% to 4.2723, while USD/SAR fell 0.02% to 3.7516. The US Dollar Index was down 0.97% at 94.84.
Saudi Arabia stocks were lower after the close on Tuesday, as losses in the Hotels&Tourism, Insurance and Industrial Investment sectors led shares lower. At the close in Saudi Arabia, the Tadawul All Share lost 2.85% to hit a new 6-months low. The best performers of the session on the Tadawul All Share were Banque Saudi Fransi (SE:1050), which rose 0.91% or 0.30 points to trade at 33.20 at the close. Meanwhile, Dallah Healthcare Holding Company (SE:4004) added 0.64% or 0.76 points to end at 119.00 and Arabian Pipes Company (SE:2200) was up 0.42% or 0.08 points to 18.95 in late trade. The worst performers of the session were BURUJ COOPERATIVE INSURANCE CO (SE:8270), which fell 10.00% or 2.50 points to trade at 22.50 at the close. ACE ARABIA COOPERATIVE INSURANCE (SE:8240) declined 9.99% or 6.99 points to end at 63.00 and Takween Advanced Industries (SE:1201) was down 9.98% or 5.32 points to 48.00. Falling stocks outnumbered advancing ones on the Saudi Arabia Stock Exchange by 161 to 5. Crude oil for October delivery was up 0.35% or 0.15 to $42.56 a barrel. Elsewhere in commodities trading, Brent oil for delivery in October fell 0.26% or 0.12 to hit $48.62 a barrel, while the December Gold contract fell 0.33% or 3.70 to trade at $1114.70 a troy ounce. EUR/SAR was down 0.41% to 4.1396, while USD/SAR fell 0.00% to 3.7514. The US Dollar Index was up 0.18% at 97.01.
Saudi Arabia stocks were higher after the close on Thursday, as gains in the Financial Services, Retail and Energy&Utilities sectors led shares higher. At the close in Saudi Arabia, the Tadawul All Share added 0.35%. The best performers of the session on the Tadawul All Share were Banque Saudi Fransi (SE:1050), which rose 3.66% or 1.20 points to trade at 34.00 at the close. Meanwhile, Anb Insurance (SE:8011) added 3.53% or 1.97 points to end at 57.75 and Saudi Automotive Services Co. (SE:4050) was up 3.19% or 1.01 points to 32.70 in late trade. The worst performers of the session were Salama Cooperative Insurance Co (SE:8050), which fell 7.72% or 1.48 points to trade at 17.70 at the close. Trade Union Cooperative Insurance (SE:8170) declined 3.64% or 1.40 points to end at 37.10 and Malath Cooperative Insurance Co (SE:8020) was down 3.20% or 1.09 points to 33.00. Falling stocks outnumbered advancing ones on the Saudi Arabia Stock Exchange by 105 to 60. Crude oil for August delivery was up 0.49% or 0.28 to $57.24 a barrel. Elsewhere in commodities trading, Brent oil for delivery in August rose 1.07% or 0.67 to hit $62.67 a barrel, while the August Gold contract fell 0.29% or 3.40 to trade at $1165.90 a troy ounce. EUR/SAR was up 0.30% to 4.1594, while USD/SAR rose 0.00% to 3.7501. The US Dollar Index was down 0.25% at 96.24.
Saudi Arabia stocks were higher after the close on Tuesday, as gains in the Transport, Industrial Investment and Insurance sectors led shares higher. At the close in Saudi Arabia, the Tadawul All Share gained 0.30%. The best performers of the session on the Tadawul All Share were The Mediterranean&Gulf Insurance Co (SE:8030), which rose 5.81% or 2.25 points to trade at 41.00 at the close. Meanwhile, Alinma Tokio Marine Co (SE:8312) added 5.19% or 2.45 points to end at 49.70 and United Int Transportation Company (SE:4260) was up 4.35% or 2.48 points to 59.50 in late trade. The worst performers of the session were Tihama Advertising&Public Relations (SE:4070), which fell 8.82% or 9.50 points to trade at 98.25 at the close. Banque Saudi Fransi (SE:1050) declined 2.85% or 0.94 points to end at 32.10 and Amana Cooperative Insurance Co (SE:8310) was down 2.23% or 0.29 points to 12.70. Rising stocks outnumbered declining ones on the Saudi Arabia Stock Exchange by 119 to 46. Crude oil for August delivery was up 1.23% or 0.72 to $59.05 a barrel. Elsewhere in commodities trading, Brent oil for delivery in August rose 1.62% or 1.00 to hit $63.02 a barrel, while the August Gold contract fell 0.74% or 8.70 to trade at $1170.30 a troy ounce. EUR/SAR was down 0.10% to 4.2117, while USD/SAR fell 0.02% to 3.7501. The US Dollar Index was up 0.06% at 95.13.
Как минимум, восемь человек стали жертвами теракта в центре столицы Ливана Бейрута, еще 78 пострадали, сообщило в пятницу государственное информагентство Ливана. По данным властей, бомба была заложена в автомобиль. Ранее прозвучало предположение, что взорвалась дорожная мина, передает «Интерфакс». По первоначальным данным, взрыв прогремел близ здания сирийского банка Banque Bemo Saudi Fransi. Однако остается неясным, был ли банк мишенью террористов, так как вблизи места взрыва находятся другие возможные объекты нападения. В частности, на той же улице расположен штаб ливанской социал-демократической партии «Катаиб», представляющей интересы христиан и выступающей против правительства Башара Асада в Сирии. Бомба взорвалась в районе, населенном преимущественно христианами. К месту происшествия направились машины скорой помощи. Число жертв и пострадавших может возрасти. Пока ни одна организация не взяла на себя ответственность за теракт. Закладки: