Samba Financial Group, Saudi Arabia's second-largest lender, appears to be one of the major beneficiaries of the state-owned oil refinery company Aramco's renewal of a US$4 billion revolving credit facility, say analysts.
The five-year facility replaced a credit line from 2006, according to Aramco. The facility includes a $2.5bn tranche in US dollars, of which $1bn is a 364-day facility, and a $1.5 billion equivalent in riyals.
While it is not clear what role individual banks played, analysts said it was likely that Samba was among the key lenders because it was one of the lead arrangers.
"Aramco would have been a transaction that every bank would have lent their maximum to," said Murad Ansari, an analyst based in Riyadh at EFG-Hermes. "By categorising the banks according to their balance sheets, Samba may have been among the key lenders among the local banks."
National Commercial Bank, a privately held bank and Saudi Arabia's largest, was the other lead arranger.
"Ultimately all the banks will be receiving fees for this facility. How they are categorised will ultimately point to the fee structure and who is getting the most," said Mr Ansari.
Lenders will receive an average margin of 16 basis points on the $3bn five-year part, and a margin of 13 basis points over benchmark rates on the $1bn one-year portion, according to Aramco. Money in revolving credit can be borrowed again once it has been repaid.
Banking stocks in Saudi Arabia added more than 1 per cent after the news was announced, while Samba shares made their biggest gain in more than three weeks. They closed trading at 58 riyals a share on the Saudi Tadawul exchange yesterday.
Saudi Arabia, which controls more than 20 per cent of the world's extractable crude deposits, also plans to spend almost $400bn in the next five years on infrastructure and other development projects, according to official estimates.
[ halsayegh@thenational.ae ]
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Pathaan
Director: Siddharth Anand
Stars: Shah Rukh Khan, Deepika Padukone, John Abraham
Rating: 3/5
The biog
Favourite food: Tabbouleh, greek salad and sushi
Favourite TV show: That 70s Show
Favourite animal: Ferrets, they are smart, sensitive, playful and loving
Favourite holiday destination: Seychelles, my resolution for 2020 is to visit as many spiritual retreats and animal shelters across the world as I can
Name of first pet: Eddy, a Persian cat that showed up at our home
Favourite dog breed: I love them all - if I had to pick Yorkshire terrier for small dogs and St Bernard's for big
COMPANY PROFILE
Company: Sideup
Started: 2019
Founder: Waleed Rashed
Based: Cairo, Egypt
Industry: technology, e-commerce
Funds raised so far: $1.2 million
Investors: Launch Africa VC, 500 Global, Riyadh Angels, Alex Angels, Al Tuwaijri Fund and Saudi angel investor Faisal Al Abdulsalam
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Engine: 2.4-litre four-cylinder
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Blue Beetle
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Turning waste into fuel
Average amount of biofuel produced at DIC factory every month: Approximately 106,000 litres
Amount of biofuel produced from 1 litre of used cooking oil: 920ml (92%)
Time required for one full cycle of production from used cooking oil to biofuel: One day
Energy requirements for one cycle of production from 1,000 litres of used cooking oil:
▪ Electricity - 1.1904 units
▪ Water- 31 litres
▪ Diesel – 26.275 litres
The Roundup : No Way Out
Director: Lee Sang-yong
Stars: Don Lee, Lee Jun-hyuk, Munetaka Aoki
Rating: 3/5
Results
2pm Handicap (PA) Dh85,000 1,800m
Winner AF Al Baher, Tadhg O’Shea (jockey), Ernst Oertel (trainer).
2.30pm Maiden (TB) Dh75,000 1,400m
Winner Alla Mahlak, Fabrice Veron, Rashed Bouresly.
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Winner Arch Gold, Pat Dobbs, Doug Watson.
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Winner Meqdam, Pat Dobbs, Doug Watson.
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Winner Native Appeal, Sam Hitchcott, Doug Watson.
5.30pm Maiden (TB) Dh75,000 1,400m
Winner Amani Pico, Tadhg O’Shea, Satish Seemar
Company profile
Company name: Fasset
Started: 2019
Founders: Mohammad Raafi Hossain, Daniel Ahmed
Based: Dubai
Sector: FinTech
Initial investment: $2.45 million
Current number of staff: 86
Investment stage: Pre-series B
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Sarfira
Director: Sudha Kongara Prasad
Starring: Akshay Kumar, Radhika Madan, Paresh Rawal
Rating: 2/5
Sukuk explained
Sukuk are Sharia-compliant financial certificates issued by governments, corporates and other entities. While as an asset class they resemble conventional bonds, there are some significant differences. As interest is prohibited under Sharia, sukuk must contain an underlying transaction, for example a leaseback agreement, and the income that is paid to investors is generated by the underlying asset. Investors must also be prepared to share in both the profits and losses of an enterprise. Nevertheless, sukuk are similar to conventional bonds in that they provide regular payments, and are considered less risky than equities. Most investors would not buy sukuk directly due to high minimum subscriptions, but invest via funds.
The Woman King
Director: Gina Prince-Bythewood
Stars: Viola Davis, Thuso Mbedu, Sheila Atim, Lashana Lynch, John Boyega
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Scoreline
Al Wasl 1 (Caio Canedo 90+1')
Al Ain 2 (Ismail Ahmed 3', Marcus Berg 50')
Red cards: Ismail Ahmed (Al Ain) 77'
SPECS
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COMPANY PROFILE
Company name: Almouneer
Started: 2017
Founders: Dr Noha Khater and Rania Kadry
Based: Egypt
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Investment: Bootstrapped, with support from Insead and Egyptian government, seed round of
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MEDIEVIL (1998)
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Juliot Vinolia’s checklist for adopting alternate-day fasting
- Don’t do it more than once in three days
- Don’t go under 700 calories on fasting days
- Ensure there is sufficient water intake, as the body can go in dehydration mode
- Ensure there is enough roughage (fibre) in the food on fasting days as well
- Do not binge on processed or fatty foods on non-fasting days
- Complement fasting with plant-based foods, fruits, vegetables, seafood. Cut out processed meats and processed carbohydrates
- Manage your sleep
- People with existing gastric or mental health issues should avoid fasting
- Do not fast for prolonged periods without supervision by a qualified expert
Plan to boost public schools
A major shake-up of government-run schools was rolled out across the country in 2017. Known as the Emirati School Model, it placed more emphasis on maths and science while also adding practical skills to the curriculum.
It was accompanied by the promise of a Dh5 billion investment, over six years, to pay for state-of-the-art infrastructure improvements.
Aspects of the school model will be extended to international private schools, the education minister has previously suggested.
Recent developments have also included the introduction of moral education - which public and private schools both must teach - along with reform of the exams system and tougher teacher licensing requirements.
Is it worth it? We put cheesecake frap to the test.
The verdict from the nutritionists is damning. But does a cheesecake frappuccino taste good enough to merit the indulgence?
My advice is to only go there if you have unusually sweet tooth. I like my puddings, but this was a bit much even for me. The first hit is a winner, but it's downhill, slowly, from there. Each sip is a little less satisfying than the last, and maybe it was just all that sugar, but it isn't long before the rush is replaced by a creeping remorse. And half of the thing is still left.
The caramel version is far superior to the blueberry, too. If someone put a full caramel cheesecake through a liquidiser and scooped out the contents, it would probably taste something like this. Blueberry, on the other hand, has more of an artificial taste. It's like someone has tried to invent this drink in a lab, and while early results were promising, they're still in the testing phase. It isn't terrible, but something isn't quite right either.
So if you want an experience, go for a small, and opt for the caramel. But if you want a cheesecake, it's probably more satisfying, and not quite as unhealthy, to just order the real thing.