Egypt's current account gap narrows, but overall BoP records deficit    Egypt's PM reviews debt reduction strategy, eyes more private investment    Egypt hosts international neurosurgery conference to drive medical innovation    Egypt, India discuss expanding industrial, investment partnerships    World Bank proposes Egypt join new global health initiative    Egypt's EDA discusses Johnson & Johnson's plans to expand investment in local pharmaceutical sector    I won't trade my identity to please market: Douzi    Sisi sends letter to Nigerian president affirming strategic ties    Egypt welcomes 25-nation statement urging end to Gaza war    Egypt, Senegal sign pharma MoU to unify regulatory standards    Egyptian pound ticks down in early Tuesday trading    Famine kills more Gaza children as Israel tightens siege amid global outrage    Kuwait's Crown Prince, Egyptian minister discuss strengthening cooperation    Egyptian Drug Authority discusses plans for joint pharmaceutical plant in Zambia    Egypt's FM seeks deeper economic, security ties on five-nation West Africa tour    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt foils terrorist plot, kills two militants linked to Hasm group    Egypt, Somalia discuss closer environmental cooperation    Egypt exports 175K tons of food in one week    Giza Pyramids' interior lighting updated with new LED system    Egypt's EHA, Huawei discuss enhanced digital health    Foreign, housing ministers discuss Egypt's role in African development push    Korea Culture Week in Egypt to blend K-Pop with traditional arts    Egypt, Uruguay eager to expand trade across key sectors    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



GIB Picks Banks For $4b Bond
Published in Amwal Al Ghad on 12 - 11 - 2012

Gulf International Bank (GIB), majority owned by the Saudi Arabian government, has mandated banks to arrange a dollar-denominated bond, planned before the end of the month, four sources familiar with the matter said Sunday.
Bahrain-based GIB picked itself, as well as JP Morgan Chase Inc, National Bank of Abu Dhabi, Barclays Plc, Standard Chartered Plc and Societe Generale to arrange the deal, the sources said, requesting anonymity.
"GIB's bond issue is more of a credibility rebuilding exercise. This was one bank which was a blue-chip name once," said a banking source away from the deal.
"It's not like they have any immediate funding needs but they do want to go out there and re-establish the trust with overseas investors. Obviously, their Saudi book has grown in recent years and the proceeds can be used to further bolster that," the banker added.
GIB posted combined losses of $1.15 billion in 2007 and 2008 in the wake of the global financial crisis and was forced to sell nearly $5bn of toxic assets to its shareholders in a bailout in 2009.
The bank, in September of this year, updated a prospectus for its $4 billion bond program in which it said proceeds from any potential debt issue would be used for general corporate purposes.
Plans to issue in Malaysian ringgit have not materialized so far this year although the bank conducted investor meetings for a possible Islamic bond, or sukuk, under a 3.5 billion ringgit program.
IFR Markets, a Thomson Reuters service, said in July that GIB may have opted to hold off on issuing a ringgit sukuk because of a widening in swap rates making it more expensive to swap ringgits into hard currency.
Despite its name and its base in Bahrain, GIB is 97.2 percent owned by the Saudi government, a level of risk international investors are likely to be more comfortable with. Other shareholders are Gulf sovereign wealth funds, including Kuwait Investment Authority and Qatar Holding.
GIB said in the prospectus that it expects about $69m of non-performing exposure to become performing by the end of 2012 after restructuring negotiations currently underway are finalized.
Reuters


Clic here to read the story from its source.