HSBC eyes second tranche of Dubai's $20bn bond plan |
|
Share With Members!
Text Size 
HSBCHSBC
is looking at subscribing to the second tranche of Dubai's $20 billion (Dh73.4bn) bond programme, a senior bank official said.The bank may use it for its investment portfolio, that is it will buy bonds and distribute them to its private banking customers or it may use it for its trading book, said John Coverdale, Group General Manager and Global Co-Head of Commercial Banking at HSBCHSBC
."Yes, we are looking at them. We will make a decision according to the pricing and other different dynamics," Coverdale told Emirates Business.
He said the bond market is being freed up again, thanks to the upswing in consumer confidence over the last six months.
Dubai is expected to issue the second $10bn tranche before the year ends. The UAE Central Bank had subscribed to the first $10bn tranche.
Meanwhile, Dubai has begun selling bonds, apart from the $20bn programme. The emirate last week raised $1.93bn in its first Islamic bond sale, the biggest from the Gulf this year. It sold $1.25bn of dollar-denominated, five-year, fixed-rate Islamic bonds, or sukuk, priced to yield 6.39 per cent.
Another Dh2.5bn of local-currency floating-rate Islamic notes priced to yield 5.65 per cent. Dubai attracted more than $6.3bn in orders.
"A year ago, there was a lack of confidence and we have now seen that [bond market] free up," said Coverdale. "We have seen debt issuance, certainly in Asia Pacific, and also equity. There have been a lot of IPO issues in Hong Kong and China."
Trade finance is also seeing an upward trend as corporates appetite to invest in international markets increase. DewaDewa
for one – which in April raised $1bn in its first ECA-backed deal – is planning to have more ECA-backed deals. The state utility firm is looking at nearly doubling the current amount in the next few months to fuel its expansion plans.Simon Johnson, Regional Head of Commercial Banking at HSBC Middle EastHSBC Middle East
, said: "I can confirm that we are seeing an increase in ECA-backed facilities and that there are number of transactions we have done very recently."He said customers are "sticking" to their surplus cash at the moment while eyeing opportunities.
"We see confidence returning," Johnson said. "Customers are telling me that they see opportunities to make acquisitions and to invest in the region and internationally as confidence begins to turn around."
Essam Al Tamimi, Founder and Senior Partner of Al Tamimi, said: "The M&A pipeline in the region is becoming more active by the day.
"Not all our work today is destructive like suing people and companies. A lot of our work involves mergers and acquisitions.
"There are very good deals out there and people are acquiring business across the Gulf. There are lot of inter-Gulf acquisitions happening as we speak and it kicked off at an unbelievable scale after Ramadan."
Business confidence in the Gulf Arab region has risen to its highest level since October 2008 with companies anticipating higher revenues and profit margins, according to an HSBCHSBC
survey released on October 21.The survey, which was taken in late September, revealed 54 per cent of participants expected business to improve overall, up from 41 per cent previously.
The index, which gauges the optimism of businesses in Saudi Arabia, the UAE, Qatar and three other Gulf states, recorded a 7.3 per cent gain quarter on quarter.
The UAE ranked number three on HSBCHSBC
's Trade Confidence Index, released on October 14. It was one of the top three most confident nations in the world on trade activity and growth, scoring 118 points, up three per cent from the previous quarter. China at 121 and Indonesia at 120 took the top two spots.By Karen Remo-Listana
© Emirates Business 24/7 2009
x
DISCLAIMER
Zawya is a distributor (and not a publisher) of content supplied by third parties and subscribers. Any opinions, advice, statements, services, offers, or other information or content expressed or made available by those third parties, including information providers, subscribers or other users of the Service, are those of the respective author(s) or distributor(s) and not of the Company. The Company neither endorses nor is responsible for the accuracy or reliability of any opinion, advice or statement made on the Service by anyone other than authorized Service employee spokespersons while acting in their official capacities. The Company is not responsible for any infringement of intellectual property rights or breach of any applicable law or regulation, including regulation in relation to financial services or the distribution of financial products, defamation, data protection, telecommunications (including regulations relating to excessive use, spamming or other abusive activities) or obscene, offensive or illegal content). Under no circumstances will the Company be liable for any loss or damage caused by a member's reliance on information obtained through the Service. It is the responsibility of member to evaluate the accuracy, completeness or usefulness of any information, opinion, advice or other content available through the Service. Please seek the advice of professionals, as appropriate, regarding the evaluation of any specific information, opinion, advice or other content.
Read the full Member Agreement
http://www.zawya.com/legal/NewsLetter.cfm?name=disclaimer
Zawya is a distributor (and not a publisher) of content supplied by third parties and subscribers. Any opinions, advice, statements, services, offers, or other information or content expressed or made available by those third parties, including information providers, subscribers or other users of the Service, are those of the respective author(s) or distributor(s) and not of the Company. The Company neither endorses nor is responsible for the accuracy or reliability of any opinion, advice or statement made on the Service by anyone other than authorized Service employee spokespersons while acting in their official capacities. The Company is not responsible for any infringement of intellectual property rights or breach of any applicable law or regulation, including regulation in relation to financial services or the distribution of financial products, defamation, data protection, telecommunications (including regulations relating to excessive use, spamming or other abusive activities) or obscene, offensive or illegal content). Under no circumstances will the Company be liable for any loss or damage caused by a member's reliance on information obtained through the Service. It is the responsibility of member to evaluate the accuracy, completeness or usefulness of any information, opinion, advice or other content available through the Service. Please seek the advice of professionals, as appropriate, regarding the evaluation of any specific information, opinion, advice or other content.
Read the full Member Agreement
http://www.zawya.com/legal/NewsLetter.cfm?name=disclaimer
Community Comments (0) - 
Comment on this article 
Comment on this article
The opinions of the authors expressed herein do not necessarily state or reflect Zawya. Read our Comment Policy.
Loading ...
Zawya Comment Policy:
-
Zawya encourages you to add a comment to this discussion. You agree that when you add content to this discussion your comments will not:
1.1 Contain any material which is libelous or defamatory of any person, is obscene, offensive, hateful or inflammatory or causes damage to the reputation of any person or organisation.
1.2 Promote sexually explicit material, violence, discrimination based on race, sex, religion, nationality, disability, sexual orientation or age or any illegal activity.
1.3 Be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence.
1.4 Be threatening, abuse or invade another's privacy, or cause annoyance, inconvenience or needless anxiety.
1.5 Be used to impersonate any person, to misrepresent your identity or affiliation with any person, or be likely to deceive any person.
1.6 Give the impression that they represent Zawya.
1.7 Advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse. - The content posted on www.zawya.com is created by members of the public. The views expressed are theirs and unless specifically stated are not those of Zawya. Zawya reserves the right to review all comments prior to posting and edit or delete any contribution, but Zawya is not responsible for and can not be held liable for any content posted by members of the public on www.zawya.com.
- Zawya is not responsible for the availability or content of any third party sites that are accessible through www.zawya.com. Any links to third party websites from www.zawya.com do not amount to any endorsement of that site by Zawya and any use of that site by you is at your own risk.
- By submitting your comment, you hereby give Zawya the right, but not the obligation, to post, air, edit, exhibit, telecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comments worldwide, in perpetuity.
Loading ...Community Buzz
Stories
Companies
Most viewed companies by Community in the last 24 hrs
| Company Name | Country | Industry |
| Consolidated Contractors Company | Overseas | Construction and Design |
| Zuhair Fayez Partnership Consultants | Saudi Arabia | Construction and Design |
| Saudi Binladin Group | Saudi Arabia | Construction and Design |
| Saudi Electricity Company | Saudi Arabia | Electric Utilities |
| Barwa Real Estate Company | Qatar | Landlords and Developers |
| Roads and Transport Authority - Dubai | UAE | Regulatory and Administrative Bodies |
| Mubadala Development Company | UAE | Investment Firms and Funds |
| Ministry of Health - Saudi Arabia | Saudi Arabia | Ministries and Municipalities |
| Abu Dhabi Oil Refining Company | UAE | Oil |
| Qatar General Electricity and Water Corporation | Qatar | Electric Utilities |
Projects
Most viewed projects by Community in the last 24 hrs
| Project Name | Country | Sector |
| ENEC - Nuclear Power Plant | UAE | Power and Water |
| Abu Dhabi DOT - Abu Dhabi Metro | UAE | Infrastructure |
| Takreer - Ruwais Refinery Expansion | UAE | Oil and Gas |
| Abu Dhabi Ports Company - Khalifa Port and Industrial Zone (KPIZ) | UAE | Infrastructure |
| Aramco/Dow Chemical - Ras Tanura Integrated Refinery and Petrochemicals Complex | Saudi Arabia | Oil and Gas |
| SATORP - Jubail Refinery and Petrochemical Complex | Saudi Arabia | Oil and Gas |
| Emirates Aluminium (EMAL) - Smelter Complex - Phase 1 | UAE | Industry |
| Dubai Racing Club - Meydan City - Meydan Racecourse | UAE | Real Estate |
| Dubai RTA - Dubai Metro | UAE | Infrastructure |
| IGD - Gasco - Habshan 5 Gas Processing Plant | UAE | Oil and Gas |