Saudi Arabia

BNP Paribas SA and Citigroup Inc. are among global banks that are finally set to see some of their loans be at least partially repaid after getting caught up in one of Saudi Arabia’s biggest corporate defaults, Bloomberg News reported.In the first major test for the kingdom’s new bankruptcy law, Ahmad Hamad Algosaibi & Brothers Co., which has been locked in legal battles and negotiations with creditors over $7.5 billion of debt since 2009, had its proposal to restructure the obligations ratified by a Saudi court, Simon Charlton, Algosaibi’s chief restructuring officer said.
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Saudi Arabia is set to impose one of the world’s most sweeping vaccine mandates in an attempt to combat hesitancy toward the Covid-19 shots in the kingdom, as governments globally try to confront a new surge in cases of the Delta variant, the Wall Street Journal reported. People in Saudi Arabia will need to show proof on a mobile app that they have received at least one vaccine dose to enter public and private institutions beginning Sunday, including schools, shops, malls, markets, restaurants, cafes, concert venues and public transportation. From Aug.
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After more than 12 years of back and forth between the Algosaibi family’s conglomerate AHAB and its creditors, one of Saudi Arabia’s largest debt disputes is set to finally reach a resolution, Reuters reported. A debt restructuring proposal was submitted to the Dammam commercial court this week after approval from a creditor committee, Simon Charlton, chief restructuring officer and acting chief executive of AHAB told Reuters on Thursday.
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OPEC+ ministers called off oil output talks on Monday after clashing last week when the United Arab Emirates rejected a proposed eight-month extension to output curbs, meaning no deal to boost production has been agreed, Reuters reported. Saudi energy minister Prince Abdulaziz bin Salman had called for "compromise and rationality" to secure a deal after two days of failed discussions last week. But four OPEC+ sources said there had been no progress.
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Saudi Arabian oil group Aramco is in talks with banks for a U.S. dollar-denominated bond issue, two sources said, seeking to raise money ahead of large commitments for its major shareholder, the Saudi government, Reuters reported. Aramco was widely expected to become a regular bond issuer after its debut $12 billion bond deal in 2019 was followed by an $8 billion, five-part transaction in November last year.
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Saudi Arabia is talking with unnamed foreign investors about selling stakes in Aramco, with options that include a 1% acquisition by a leading global energy company, according to the kingdom’s crown prince, the Wall Street Journal reported. Crown Prince Mohammed bin Salman, the kingdom’s de facto ruler and chairman of Saudi Arabian Oil Co., as Aramco is officially known, said that an announcement would come in the next year or two.

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A debt restructuring proposal designed to prevent the collapse of construction giant Saudi Binladin Group may face more scrutiny from creditors, Bloomberg News reported. The lenders that want a bigger say in the process have held discussions with Rothschild & Co. and may decide to appoint the investment bank in the coming weeks. Talks are ongoing, and no final decisions have been made. Creditors may also choose to hire another adviser or none at all. While it’s not unusual for creditors to seek an independent counsel, they are acting almost a year after Binladin hired Houlihan Lokey Inc.
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Saudi Aramco has asked banks to extend by a year a $10 billion loan it raised last May, two sources familiar with the matter said, suggesting that rebounding crude prices are not pushing the oil giant to reduce debt for the time being, Reuters reported. The sources confirmed a report by Loan Pricing Corporation, a fixed-income news provider owned by Refinitiv. It is at the banks’ discretion whether to extend the loan, but lenders will likely agree in order to maintain a good relationship with Aramco in the hope of receiving future business, LPC said citing a banker.
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Saudi Arabia sold a two-part dollar bond as countries in the Gulf Arab region raise cash buffers to weather low oil prices and the coronavirus pandemic, Bloomberg News reported. The world’s largest crude exporter priced $5 billion in bonds on Tuesday. The $2.75 billion 12-year notes were priced at 130 basis points over 10-year U.S. Treasuries, compared with guidance of 140 basis points and initial price talk of 165. The $2.25 billion 40-year security were priced at 3.45%, versus guidance in the 3.55% area and initial price talk of 3.75%.

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