IslamicFinance.de

GCC's banking sector is expected to see a new round of mergers and acquisitions (M&A) in the wake of the latest such move initiated by Kuwait Finance House and Ahli United Bank of Bahrain. According to U Capital, at least five M&A deals are in various stages of discussion. The new round of M&A follows the merger between National Bank of Abu Dhabi (NBAD) and First Gulf Bank (FGB) in the UAE, resulting in creation of the regions second biggest bank. Combined assets of four top conventional banks in the region stand at $621 billion whereas the assets of entire Islamic banks in GCC stand at $563 billion as of second quarter 2017. According to banking sources, Masraf Al Rayan, International Bank of Qatar and Barwa Bank are in the due diligence phase. The three-way merger is expected to create the largest Islamic bank in Qatar. Saudi British Bank and Alawwal Bank are also said to be discussing a potential merger that would create the third-largest bank in Saudi Arabia.

The long-term issuer default ratings of Saudi British Bank, Banque Saudi Fransi and Arab National Bank were revised to negative from stable
Ratings agency Fitch has downgraded the outlooks on 3 Saudi Arabian banks as low Crude Oil prices continue to plague the Kingdom’s economy.
The long-term issuer default ratings of Saudi British Bank, Banque Saudi Fransi and Arab National Bank were revised to negative from stable, Fitch said in a statement.
The revision was based on the tougher operating environment facing the Saudi Arabian banking sector, mainly due to the effect of lower Crude Oil prices on government spending and the filter down effect this has on the rest of the economy.

Saudi British Bank (SABB) is planning to sell a riyal-denominated sukuk that will boost its capital reserves, with an announcement set to be made as early as next week. The issue will boost SABB's Tier 2, or supplementary, capital and will be arranged by HSBC's Saudi Arabian unit. The sukuk could be worth 1.5 billion riyals ($400 million) and will have a 10-year lifespan but a clause that will allow the bank to redeem the issue at the end of the fifth year. Riyad Bank announced plans to issue a 4 billion riyal bond to boost its capital base earlier this week. It will have the same 10-year, non-call five, structure that SABB is planning to offer.

Saudi Arabia's National Industrialization Company (Tasnee) has signed a sharia-compliant loan facility worth SR4 billion ($1.06 billion) with seven Saudi banks and Emirates NBD. The Saudi banks which contributed are Riyad Bank, Al Rajhi Bank, Bank Al Bilad, Saudi British Bank, Samba Financial Group, Banque Saudi Fransi and Saudi Investment Bank. The financing, signed on Sunday, will be repaid in eight years including a one-year grace period. The loan, which was covered 1.5 times, will finance the company's stakes in future projects and refinance existing loans.

Saudi British Bank (SABB), an affiliate of HSBC Holdings and the kingdom's third-largest listed lender by market value, is reportedly aiming to sell a Tier 2 capital-boosting Islamic bond before the end of the year. HSBC is advising SABB on the potential riyal-denominated transaction.

Executes, administers and monitors the products and services provided by SABB Amanah and IBSA HSBC to ensure compliance with Shariah rules and guidelines (Fatwas) at all times. Highlights cases of non compliance by a particular team/department and regularly monitors the same to ensure closure of gaps thereby enhancing the Amanah image among its customers and improving the overall profitability of the Business.

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The Saudi British Bank (SABB) held three seminars on the topic of Islamic Banking Services. THe seminars took place in Riyadh, Jeddah and Alkhobar, and were organized by the Commercial Banking Services Department. A large group of SABB 's prominent corporate customers attended the events. Some of the specific topics discussed at the seminars were opportunities and challenges facing Islamic Banking as well as the promising future of Islamic Banking in light of how it differs from conventional banking, particularly in the Kingdom of Saudi Arabia.

International Polymers Company (IPC), hastaken signed a Shariah compliant SR1.4 bln (US$373 mln) loan from Saudi banks, Riyad Bank, National Commercial Bank, Saudi Hollandi Bank, and The Saudi British Bank.
The funds will sustain the project financing of a production plant currently being built in Jubail Industrial City.

Saudi Electricity Co (SEC) has finalised an Islamic financing worth 5 billion riyals ($1.33 billion) with four local banks to finance projects in the kingdom.
The 15-year murabaha financing was provided by Saudi Arabia's largest lender by assets, the National Commercial Bank, alongside Saudi British Bank 1060.SE (SABB), Samba Financial Group 1090.SE and Banque Saudi Fransi 1050.SE.