Abu Dhabi National Oil Company (ADNOC) has over the past year inked a number of landmark – and in some cases pioneering – transactions, part of a bold new strategy aimed at expanding and enhancing the company’s global position. We speak with one of the architects of the funding strategy behind it, Michele Fiorentino, Chief Investment Officer at ADNOC.
Franklin Templeton’s Senior Research Analyst Franck Nowak concedes that some optimism has faded over the past quarter, especially as Fed hikes look inevitable and EM jitters have settled in, but underscores the fact that GCC bonds are performing still well and project finance is expected to drive the deal pipeline for the region in 2018.
In a deal that involves an amortizing loan with debt and equity tranches on a non-recourse project finance basis, the Saudi Arabia-based developer broke new ground by achieving an 18-year tenor, raising USD financing with an EGP-denominated tariff and bringing in a Chinese commercial bank.
Orpic (Oman Oil Refineries and Petroleum Industries Company) is jointly owned by the Government of Oman and Oman Oil Company and is one of the biggest and fastest growing businesses not just in the country but the region more broadly. Bonds & Loans spoke to Alexandre Clar, MG Treasurer at Orpic, about how the company plans to finance its rapid expansion and new initiatives.
In April 2018 Omantel, the Imani telecoms company, successfully priced the inaugural USD1.5bn dual-tranche senior secured offering to refinance a bridge loan closed in late 2017 for the acquisition of a 21.9% stake in Zain Group. It was the largest corporate offering from Oman ever and first dual-tranche transaction from an Omani Corporate with 5.5 and 10-year tenors.
As recently as 2016 the Abraaj Group was flying high: with around USD13.6bn of assets under management globally, the investment firm was one of the biggest in the region and blazed the trail for GCC private equity investors to expand into the growth markets. Two years on, abandoned by its founder Arif Naqvi, it is facing USD1.2bn in debt, multiple lawsuits and an unprecedented level of attention and scrutiny from authorities, threatening to send shockwaves through Middle East’s financial markets.
Metito is a leading provider of choice for water management solutions in the emerging markets with operations covering segments including chemicals, and utilities. Although the company is based in the Gulf, it operates on a global scale. We speak to the Holding’s CFO Wafic Ghanem about Metito’s funding plans for the coming year, including hedging and refinancing programs and market diversification.
Questions have swirled in recent months over Bahrain’s strained finances, but there is good reason to believe the country is in much better shape than sensational headlines suggest. This bodes well not just for the country, but fort the region as a whole, writes Anita Yadav.
The Omani electricity company SPV placed the first ever corporate sukuk from the country with an elegant legal structure that helped navigate regulatory obstacles.
With trade wars and geopolitics-related volatilities engulfing global markets, the GCC finds itself in an unusual role of a relative safe-haven, insulated from the tremors by strong growth and a high oil price. We speak to Tom Koczwara, Director of the Government of Sharjah’s Debt Management Office, about prospects and challenges facing the Emirate.
- CASE STUDY: Emirate of Sharjah Brings Rare RMB2bn Panda to Middle East Market
- EM Bond Outlook: Better 2H 2018 Expected
- CASE STUDY: Dubai Aerospace Gets Lift-Off on USD480mn Dual-Tranche Murabaha RCF
- GCC Bonds: Is the Worst Behind Us?
- Rajat Sapra, Bank ABC Goes Sector-by-Sector on GCC Debt Capital Markets Pipeline
18 Oct 2018