TOP NEWS IN MIDDLE EASTERN AND AFRICAN FINANCIALS
* First Abu Dhabi Bank PJSC signed a deal to acquire 100% of the share capital of Bank Audi SAE, the Egyptian unit of Lebanon-based Bank Audi SAL. The financial terms of the deal, which is expected to complete within the next few months, were not disclosed. The United Arab Emirates-based lender said the acquisition will make it one of the largest foreign banks in Egypt by assets, with pro forma total assets of more than 120 billion pounds.
* Oman Arab Bank SAOG said it terminated the contract of its CFO, Darren Warner, effective Jan. 20. The Omani lender also appointed Yasir Badri an independent board member.
➤ SocGen's Crédit du Nord, Boursorama plan signals digital shift but no panacea
The France-based lender plans to close branches and undertake a host of other measures to breathe new life into its retail business, with expectations that short-term pain will lead to long-term gain.
➤ Impact of UK virus insurance test case may go beyond pandemic claims
Though the Supreme Court's ruling in the business interruption dispute clarifies some matters, it could leave insurers open to further claims and lawsuits, including those unrelated to the pandemic, according to lawyers.
BANKING
* National Commercial Bank, the largest bank in Saudi Arabia by assets, said it has commenced with its planned issuance of a U.S.-dollar denominated additional Tier 1 sukuk, with a minimum subscription of $200,000. The offer price of the perpetual bond will be subject to market conditions.
* Riyad Bank has also pressed ahead with the issuance of a Saudi Arabian riyal-denominated Tier 2 capital-eligible sukuk by way of private placement, with a minimum subscription and offer price of 1 million riyals.
* UAE-based Emirates NBD Bank PJSC said funds transferred via its DirectRemit platform rose by more than 20% last year from a year earlier as more clients shifted to online and mobile channels amid the pandemic, The National wrote.
* Abdulrahman bin Ibrahim al-Humaid, chairman of Saudi Arabia-based Bank AlBilad, has died, Argaam reported.
* Mauritius-based Bank One said it hopes to expand into sub-Saharan Africa and develop economies of scale through cross-selling, according to L'Express.
* Moody's said the stable outlook for Egypt's banking sector this year reflects the balance between lenders' profitability and the pressures on their loan boos against their sound liquidity and the country's stable credit profile.
FINANCIAL SERVICES
* Fitch Ratings said new solvency regulations, higher minimum capital requirements and a fragmented market will further spur consolidation among insurers in Saudi Arabia.
* S&P Global Ratings affirmed the A- issuer credit and insurer financial strength ratings of Nigeria-based African Reinsurance Corp., as well as the A- financial strength rating of unit African Reinsurance Corp. South Africa Ltd. The outlook is stable.
INDUSTRY NEWS
* Bahrain, which is seeking to plug a budget deficit exacerbated by the pandemic and lower oil prices, has sold $2 billion in three-tranche bonds yesterday, Reuters reported.
* Egypt and Qatar have agreed to restore diplomatic relations, Reuters wrote, citing the Egyptian foreign ministry. Earlier this month, Egypt, Saudi Arabia, the United Arab Emirates and Bahrain agreed to resume ties with neighboring Qatar in a U.S.-brokered deal to end a regional dispute that erupted in 2017.
* The African Development Bank and the European Investment Bank signed a joint partnership action plan to further boost public and private sector investment in Africa.
* The Republic of Congo is close to reaching an agreement to restructure its debt with energy trading company Trafigura, a prerequisite to receiving a new tranche of financial aid from the IMF, Jeune Afrique reported.
MARKETS
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Deza Mones, Abdelghani Henni, Pádraig Belton and Mariana Aldano contributed to this report.
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