Bank had issued $500m, five-year sukuk in January
Dubai: Abu Dhabi-based First Gulf Bank (FGB) plans to issue a benchmark-sized, five-year, US dollar bond this week depending on market conditions, a person familiar with the deal said on Monday. Initial price thoughts for the bond are around 220 basis points over midswaps, the person, who declined to be identified, told Zawya Dow Jones. Citigroup, Deutsche Bank, HSBC, National Bank of Abu Dhabi and Standard Chartered Bank have been mandated as joint lead managers and bookrunners for the planned regulation S transaction under FGB’s $3.5 billion (Dh12.86 billion) euro medium-term note programme. FGB issued a $500 million, five-year Islamic bond in January.
Swift Freight
Danish freight forwarder DSV has agreed to buy Dubai-based Swift Freight, it said on Monday, with the aim of expanding in the Middle East and Africa. Swift generated revenue of about $70 million in the last 12 months and has 400 employees, DSV said in a statement, which did not disclose the purchase price. The purchase agreement includes full ownership of the companies in the UAE, China and India and initially a 33 per cent share of the companies in Africa, DSV said, adding it expected to obtain full ownership of the African entities in the future.
Sadara Chemical Co.
Sadara Chemical Co., a joint venture between Saudi Arabian Oil Co. and Dow Chemical Co. (DOW), said on Sunday it has appointed Ziad Al Labban as its new chief executive. Al Labban succeeds Ali Abu Ali who has decided to retire early from the company, the firm said in an emailed statement. His appointment will be effective from Monday, it added. The new chief executive has 30 years’ experience in the upstream and downstream sectors of the oil, gas and petrochemical businesses and was the president and CEO of Rabigh Refining & Petrochemicals Co. until early September. Saudi Aramco and Dow Chemical plan to build one of the world’s largest chemicals plants in the kingdom’s eastern province. The firms signed last year a joint venture shareholders’ agreement to build the complex in Jubail. First production units are expected to come on line in the second half of 2015, while all units are expected to be up and running in 2016.
Kuwait Projects Co.
Kuwait Projects Co. (Holding), or Kipco, said on Monday it has acquired the entire 25.86 per cent stake of its unit Kipco Asset Management Co. (Kamco) in a non-listed company for 9.83 million Kuwaiti dinars (Dh128.4 million). Kipco said in a statement posted on the Kuwait bourse website that since the stake was bought from one of its units, the loss [incurred by Kamco] on the deal won’t be included in the group’s consolidated results. Kamco said in a separate statement that it lost KWD5.3 million on the divestment. The Kipco group is one of the largest diversified investment holdings in the Middle East and North Africa region.
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