Middle East & Africa Stay updated with Business News, Pakistan news, Current world news and latest world news with Business Recorder.. http://www.brecorder.com/markets/fixed-income/middle-east-a-africa.html Wed, 22 Oct 2014 22:24:30 +0000 SRA Framework 2.0 en-gb Egyptian pound steady on official, weaker on black market http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/199958-egyptian-pound-steady-on-official-weaker-on-black-market.html http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/199958-egyptian-pound-steady-on-official-weaker-on-black-market.html imageCAIRO: Egypt's pound held steady at a central bank dollar sale on Wednesday, when the bank said it sold $37.6 million at a cut-off price of 7.1401 pounds per dollar.

The price was unchanged from Monday's sale.

In the unofficial market, the pound was trading at 7.40 to the dollar, weaker than Monday's rate of 7.38 to the dollar, one trader said.

The rate for dollar sales has stayed in a tight range since the beginning of June, after the bank allowed the pound to weaken in May. The central bank offered $40 million on Wednesday.

The rates at which banks are allowed to trade dollars are determined by the results of central bank sales, giving the bank effective control over official exchange rates.

Copyright Reuters, 2014

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imad_kueconomist@yahoo.com (Imaduddin) Middle East & Africa Wed, 15 Oct 2014 16:30:44 +0000
Yields on Kenya's 364- and 182-day treasury bills rise http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/195825-yields-on-kenyas-364-and-182-day-treasury-bills-rise.html http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/195825-yields-on-kenyas-364-and-182-day-treasury-bills-rise.html imageNAIROBI: The yield on Kenya's 364-day Treasury bills rose to 10.276 percent at auction from 10.163 percent, while that on six-months bills increased to 8.604 percent from 8.550 percent, the central bank said.

The central bank said in a newspaper advertisement published on Thursday that it received a total of 6.7 billion shillings($75.11 million) worth of bids for the two papers on offer at auction on Wednesday, and accepted the entire amount.

Copyright Reuters, 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Middle East & Africa Thu, 18 Sep 2014 05:46:07 +0000
Goldman Sachs launches $500mn, 5-year sukuk; pricing at tight end http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/195352-goldman-sachs-launches-$500mn-5-year-sukuk;-pricing-at-tight-end.html http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/195352-goldman-sachs-launches-$500mn-5-year-sukuk;-pricing-at-tight-end.html imageDUBAI: Goldman Sachs has launched a $500 million, five-year debut Islamic bond offer that will price later on Tuesday, with pricing at the tight end of guidance.

The investment bank set the transaction to price at a spread of 90 basis points over midswaps, a document from lead arrangers showed, at the lower end of its revised guidance of between 90 and 95 bps. Initial guidance was in the area of 95 bps.

Investor orders grew to $1.5 billion for the issue, the document showed.

The sukuk is being issued through a vehicle called JANY Sukuk Co and will be guaranteed by Goldman Sachs. The issue is expected to be rated A-minus by Standard & Poor's and A by Fitch Ratings, identical to the ratings of the investment bank. It will be listed on the Luxembourg Stock Exchange.

Goldman had picked itself, Abu Dhabi Islamic Bank, Emirates NBD, National Bank of Abu Dhabi, QInvest and the investment banking arm of Saudi Arabia's National Commercial Bank to arrange the issue.

Copyright Reuters, 2014

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imad_kueconomist@yahoo.com (Imaduddin) Middle East & Africa Tue, 16 Sep 2014 12:01:15 +0000
Mauritius 364-day Treasury bills' yield rises to 2.14pc http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/194609-mauritius-364-day-treasury-bills-yield-rises-to-214pc.html http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/194609-mauritius-364-day-treasury-bills-yield-rises-to-214pc.html

imagePORT LOUIS: The weighted average yield on Mauritius' 364-day Treasury bills rose to 2.14 percent at auction from 1.75 percent at the previous sale on Sept. 5, the central bank said on Friday.

The Bank of Mauritius put on sale 1 billion Mauritius rupees ($31.92 million) worth of debt instruments but accepted bids for 1.050 billion rupees.

Bids totalled 1.970 billion rupees, at rates ranging from 3.70 percent to 2.0 percent.

Copyright Reuters, 2014

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m.iqbal1967@yahoo.com (Muhammad Iqbal) Middle East & Africa Fri, 12 Sep 2014 18:23:00 +0000
Egypt sells 623.4mn euros in 1-year treasury bills: central bank http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/190343-egypt-sells-6234mn-euros-in-1-year-treasury-bills-central-bank.html http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/190343-egypt-sells-6234mn-euros-in-1-year-treasury-bills-central-bank.html imageCAIRO: Egypt's central bank said on Monday it sold 623.4 million euros ($822.76 million) in one-year treasury bills, more than the amount it had offered to local banks and financial foreign financial institutions.

The average yield on the euro-denominated bills, which mature on August 25, 2015, is 1.981 percent.

The bank had offered to sell 550 million euros in one-year euro-denominated treasury bills for issue on August 26.

The government has turned mainly to the local money market to finance its public deficit since Egypt's popular uprising in early 2011 chased away most foreign investors.

Copyright Reuters, 2014

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imad_kueconomist@yahoo.com (Imaduddin) Middle East & Africa Mon, 25 Aug 2014 12:14:36 +0000
Egypt bond yields jump at first auction after rate hike http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/185162-egypt-bond-yields-jump-at-first-auction-after-rate-hike.html http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/185162-egypt-bond-yields-jump-at-first-auction-after-rate-hike.html imageCAIRO: Egyptian treasury bond yields jumped more than 1 percent at an auction on Monday following last week's surprise 100 basis point hike in interest rates, reaching their highest in more than 10 months.

The central bank delayed announcing the results of the bond auction until Tuesday, which traders said might reflect government concern about rising yields.

Egypt accepted bids worth only 786 million Egyptian pounds ($109.9 million), a fraction of the amount offered.

The average yield on 18-month bonds increased to 12.860 percent from 11.579 percent at the last auction on July 8, while the yield on three-year bonds jumped to 13.971 percent from 12.690 percent. The yield on the seven-year bond rose to 15.781 percent from 14.536 percent.

Yields have not been as high on the three-year and seven-year bonds since last July, shortly after elected Islamist President Mohamed Mursi was ousted by the army following mass protests.

The yield on the 18-month bond was the highest since it was first issued last September, according to one trader.

Egyptian treasury bill yields jumped more than 1 percent on Sunday, the first trading day after the central bank raised benchmark interest rates last Thursday.

The unexpected move seen as an attempt to hold down inflation less than two weeks after the government slashed subsidies on fuel and electricity.

Egypt accepted bids worth 170 million Egyptian pounds for the 18-month bonds after offering 1.5 billion pounds, the bank said. It accepted bids worth 223 million pounds for the three-year bonds, compared with 2 billion pounds offered, while for the seven-year bonds it accepted bids worth 393 million pounds after offering 750 million.

"(They) might as well have cancelled instead of accepting such small amounts," said one Cairo-based fixed-income trader.

Bond and treasury bill auctions have been cancelled or capped occasionally in the past, most recently in May, when the bank accepted only about half the amounts it had offered as yields rose.

Copyright Reuters, 2014

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imad_kueconomist@yahoo.com (Imaduddin) Middle East & Africa Tue, 22 Jul 2014 10:51:01 +0000
Abu Dhabi exchange signs bonds listing, trading agreement http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/180360-abu-dhabi-exchange-signs-bonds-listing-trading-agreement.html http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/180360-abu-dhabi-exchange-signs-bonds-listing-trading-agreement.html imageDUBAI: Abu Dhabi Securities Exchange (ADX) has signed an agreement paving the way for bonds and other debt instruments to be listed and traded through the bourse, it said in a statement on Sunday.

The introduction of debt listing and trading has long been anticipated in the emirate - the largest and richest of the seven which make up the United Arab Emirates - as a way to expand the exchange's activities and make it easier for local companies to sell debt instruments.

Developing a domestic debt market was a "national priority", the UAE central bank governor said last November, while the head of the emirate's department of finance said the local government would dual-list government bonds in Abu Dhabi and London in future.

Under the agreement signed by ADX and National Bank of Abu Dhabi, the UAE's largest lender, bonds can be listed and then traded through the exchange by local and international investors, with NBAD using its account with Euroclear to process the transactions.

Euroclear is one of the main international clearing houses for trades in public debt instruments.

"Longer term, local fixed income and sukuk issuances will encourage more infrastructure funding and attract institutional capital flows, as well as the creation of a local yield curve," said Rashed al-Baloushi, chief executive of ADX.

No time frame for when the agreement will come into force was given in the statement. A spokesman for ADX said a date for when bonds trading would start had not been decided, but that the agreement with NBAD was a message to the market that the infrastructure was ready.

The statement noted that only one bond was currently listed on the ADX: a subordinated convertible note issued by NBAD. Abu Dhabi currently has one sovereign bond outstanding, which matures in 2019.

Establishing a listing and trading platform for bonds brings the ADX into line with neighbouring emirate Dubai, which has such business through the Nasdaq Dubai exchange. Nasdaq Dubai currently has conventional bonds and sukuk worth more than $23 billion, according to its website.

Copyright Reuters, 2014

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imad_kueconomist@yahoo.com (Imaduddin) Middle East & Africa Sun, 22 Jun 2014 14:00:19 +0000
Nigeria raises $521mn at bond sale, yields mixed http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/178318-nigeria-raises-$521mn-at-bond-sale-yields-mixed.html http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/178318-nigeria-raises-$521mn-at-bond-sale-yields-mixed.html imageLAGOS: Nigeria sold a combined 85.17 billion naira ($521.33 million) in three-year and 10-year bonds to mostly local pension funds and some offshore investors, the Debt Management Office (DMO) said on Thursday.

DMO said it sold 30 billion naira worth of 3-year bonds at an 11.35 percent yield, up from the 11.09 percent the same tenor fetched at an auction last month.

A total of 50 billion naira was sold in the 10-year paper at 12.24 percent, down from 12.54 percent at the previous auction. In addition, the DMO issued 5.17 billion naira in 10-year bonds on a non-competitive basis to the central bank.

Nigeria had initially offered to sell 35 billion naira each in the 3-year and 10-year papers.

Demand at the auction stood at 204.53 billion naira, lower than 239.03 billion naira received at last month's auction.

Copyright Reuters, 2014

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imad_kueconomist@yahoo.com (Imaduddin) Middle East & Africa Thu, 12 Jun 2014 12:28:14 +0000
Rand, forint, lead emerging currency pullback http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/178111-rand-forint-lead-emerging-currency-pullback.html http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/178111-rand-forint-lead-emerging-currency-pullback.html imageLONDON: South African local bond yields rose to the highest in six weeks on Wednesday on anticipation of rate hikes and a ratings downgrade, while the rand led a general emerging currency pullback versus the dollar.

Swaps markets indicate that investors are pricing roughly 100 basis points of policy tightening in South Africa over the coming year following a hawkish speech by central bank governor Gill Marcus. That has pushed up bond yields across the curve with two-year yields up 30 basis points this week

Foreigners sold $55.64 million worth of bonds on Tuesday, pressuring the rand which slipped 0.8 percent to the dollar to one week lows. Fears of a ratings cut this Friday are also pushing up debt insurance costs - 5-year credit default swaps rose 3 bps to 182, up almost 20 bps since last week.

Spreading labour unrest in the mining sector, weak growth, and high inflation make South Africa more vulnerable than other emerging markets to the rise U.S. yields and the dollar.

David Hauner, head of EEMEA fixed income and economics at Bank of America Merrill Lynch, said South African losses were being limited by the hunger for carry, given it offers some of the highest yields in emerging markets at over 8 percent.

"The rand will remain an underperformer. (The) bond market is part of my concern, that we are setting up for more volatility because of complacency and people's hunt for yield," he said.

He said the trade balance - and current account gap - could worsen in coming months as inventories of platinum, which the country is drawing on for exports, get depleted.

Elsewhere, the Turkish lira fell 0.5 percent while earlier in Asia, the yuan slipped back after three days of gains and most currencies fell as investors scrambled to cover short dollar positions.

The dollar is close to a four-month high to the euro while 10-year yields are at their highest since end-April.

Emerging stocks fell 0.15 percent, easing from one-year highs showing little reaction to MSCI's decision to keep Chinese local shares out of its emerging markets index and to not re-classify South Korea and Taiwan as developed markets.

FORINT FALLS

In emerging Europe, Hungary's forint slumped to a one-week low versus the euro as data showed prices in negative territory for the second straight month, but bond yields showed little reaction after falling to record lows in recent weeks.

Versus the dollar, the forint hit two-month lows

Hungarian stocks fell 1 percent after the data

"Absent headline inflation will support further monetary easing ... Another 10 bp cut, reducing the main rate to 2.30 percent later this month, looks certain," BNP Paribas said.

Other regional currencies also weakened, with the zloty down 0.2 percent and the leu falling 0.3 percent . BofA's Hauner attributed this to rate cut expectations.

"Central banks are increasingly telegraphing they don't want currency strength. Secondly, everyone had piled in before the ECB announcement so positioning was already extended and third, these currencies have a high beta to euro-dollar. As that goes lower, you get euro/zloty reacting too," he added.

Russian assets were broadly stable as Moscow gave Ukraine more time to meet gas payment demands .

But there were signs more Russian borrowers could venture back to bond markets, with sources telling Reuters that state-run Sberbank had appointed banks to raise up to 1 billion euros. Alfa Bank last week sold a euro-denominated bond, the first Russian borrower to do so in months.

Copyright Reuters, 2014

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imad_kueconomist@yahoo.com (Imaduddin) Middle East & Africa Wed, 11 Jun 2014 13:52:55 +0000
Saudi sovereign wealth fund plan attracts debate in advisory body http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/177834-saudi-sovereign-wealth-fund-plan-attracts-debate-in-advisory-body.html http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/177834-saudi-sovereign-wealth-fund-plan-attracts-debate-in-advisory-body.html imageDUBAI: A proposal to set up a Saudi Arabian sovereign wealth fund attracted debate at a meeting of the kingdom's influential Shura council advisory body but failed to yield a result, state media reported on Tuesday.

A report by the council's financial committee has said the National Reserve Fund, which would invest part of the kingdom's vast hydrocarbon wealth, would build on its financial stability.

Details of its investment strategy have yet to be disclosed publicly, but if the proposed fund is run like the sovereign wealth funds of other wealthy Gulf states such as Qatar and Abu Dhabi, it could mean a change in the way Saudi money flows through global markets.

So far the country's central bank, the Saudi Arabian Monetary Agency, has long managed the country's investment of oil surpluses abroad, focusing on low-risk assets.

The size of Saudi Arabia's foreign reserves suggests the new sovereign wealth fund could become one of the largest in the world, depending on the proportion of reserves it was allocated.

"After the committee presented its report ... differing opinions emerged between setting up the fund or finding the performance of SAMA and the Public Investment Fund sufficient in the field of investments," the Saudi Press Agency reported on Tuesday following the two-day meeting of the body.

SPA said the council agreed the financial committee would present their views in response to members' views at the next session - the timing of which was not disclosed.

Local media said this week the proposed Saudi fund would start with capital of 30 percent of budget surpluses accumulated over past years. In 2013 alone, the government posted a budget surplus of 206 billion riyals ($55 billion).

Copyright Reuters, 2014

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imad_kueconomist@yahoo.com (Imaduddin) Middle East & Africa Tue, 10 Jun 2014 16:15:31 +0000