First Gulf Bank, Abu Dhabi's third-biggest bank by assets, has announced that it will postpone a $500 million (Dh1.8bn) bond issuance because of market volatility.
This movecasts doubt on trading conditions in a debt market which, until recently, had been seen as increasingly attractive to Gulf companies.
The proposed issuance was a $500m, three-year dated bond which would have paid a coupon of 4 per cent, according to the prospectus.
A bank spokesman said: "The team of advisors took a decision not to go ahead. We'll monitor the market and if conditions improve we'll try to reissue."
John Tofarides, financial analyst at Moody's, expressed surprise at the decision, saying that Gulf banks currently enjoy strong trading conditions to issue bonds.
"I think for the Dubai banks maybe not, but Abu Dhabi banks are better positioned."
He added that First Gulf Bank was not in a worse position on account of its aborted debt issuance.
"The bank is well capitalised and has the means to finance its growth through deposits," he added.
White hydrogen: Naturally occurring hydrogen
Chromite: Hard, metallic mineral containing iron oxide and chromium oxide
Ultramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica content
Ophiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on land
Olivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour
Strait of Hormuz
Fujairah is a crucial hub for fuel storage and is just outside the Strait of Hormuz, a vital shipping route linking Middle East oil producers to markets in Asia, Europe, North America and beyond.
The strait is 33 km wide at its narrowest point, but the shipping lane is just three km wide in either direction. Almost a fifth of oil consumed across the world passes through the strait.
Iran has repeatedly threatened to close the strait, a move that would risk inviting geopolitical and economic turmoil.
Last month, Iran issued a new warning that it would block the strait, if it was prevented from using the waterway following a US decision to end exemptions from sanctions for major Iranian oil importers.
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Jorginho (4 pen, 71 pen), Azpilicueta (63), James (74)
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Abraham (2 og), Promes (20). Kepa (35 og), van de Beek (55)
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Thursday’s fixtures
6pm: Hyderabad Nawabs v Pakhtoon Warriors
10pm: Lahore Sikandars v Pakhtoon Blasters
Teams
Chennai Knights, Lahore Sikandars, Pakhtoon Blasters, Abu Dhabi Stars, Abu Dhabi Dragons, Pakhtoon Warriors and Hyderabad Nawabs.
Squad rules
All teams consist of 15-player squads that include those contracted in the diamond (3), platinum (2) and gold (2) categories, plus eight free to sign team members.
Tournament rules
The matches are of 25 over-a-side with an 8-over power play in which only two fielders allowed outside the 30-yard circle. Teams play in a single round robin league followed by the semi-finals and final. The league toppers will feature in the semi-final eliminator.
UAE currency: the story behind the money in your pockets
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
