TOP NEWS IN MIDDLE EASTERN AND AFRICAN FINANCIALS
* Qatari lender Masraf Al Rayan QPSC agreed to absorb peer Al Khalij Commercial Bank PQSC to create a merged entity that will become among the largest Shariah-compliant banks in the Middle East with assets amounting to roughly 172 billion riyals. Masraf Al Rayan will issue 0.50 share for every Al Khalij share, representing a 21.4% premium on the latter's Jan. 5 closing price. The deal is valued at roughly 8.2 billion riyals, according to Bloomberg News.
* United Arab Emirates-based Emirates NBD Bank PJSC issued $750 million of senior five-year bonds maturing Jan. 13, 2026.
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BANKING
* First Abu Dhabi Bank PJSC, the largest bank in the United Arab Emirates, is marketing $500 million of five-year Islamic bonds, or sukuk, with initial price guidance of between 100 and 105 basis points over mid-swaps, a source told Bloomberg.
* Moody's assigned Iraq-based Ashur International Bank for Investment long- and short-term bank deposit ratings of Caa1/NP, with a stable outlook on the long-term rating, as well as baseline and adjusted baseline credit assessments of "caa1" and long- and short-term counterparty risk assessments of B3(cr)/NP(cr), among other ratings.
* Bank deposits in Egypt rose 17.4% year over year to 4.686 trillion pounds in the 2019-2020 fiscal year, Amwal Al Ghad reported, citing the Central Agency for Public Mobilization and Statistics.
* Ivory Coast-based multilateral lender African Development Bank appointed Serge N'Guessan, Nnenna Lily Nwabufo and Leïla Farah Mokadem director generals for Central Africa, East Africa and Southern Africa, respectively.
* Samuel Tweah, finance minister of Liberia, attributed the shortage of currency in the country to a lack of confidence in commercial banks, which he said forces the public to keep their money at home instead, Front Page Africa reported. The official also said printing more banknotes is not a solution to the currency shortage.
FINANCIAL SERVICES
* The Nigerian Stock Exchange appointed CEOs for its operating and non-operating entities upon the closing of its demutualization, The Punch reported. Oscar Onyema will become CEO of Nigerian Exchange Group PLC, while Temi Popoola and Tinuade Awe will head Nigerian Exchange Ltd. and NGX Regulation Ltd., respectively.
* Moody's assigned Saudi Arabia-based Medgulf Cooperative Insurance & Reinsurance Co. an insurance financial strength rating of B1 and placed the rating on review for upgrade on the back of a plan to raise 350 million riyals of fresh capital through a rights issue.
* UAE-based Finance House PJSC appointed Raman Tirunelveli Kuppuswamy CEO, replacing Abdul Hamid Umer Taylor.
* Kuwait-based First Takaful Insurance Co. KPSC, a unit of International Financial Advisors Holding KPSC, paid out a compensation of roughly $2.6 million to an insured client due to material losses brought about by rain accidents, Zawya reported.
* South African health insurers will help subsidize COVID-19 vaccines for up to 14 million people in the country, totaling up to 7 billion rand, Discovery Health Ltd. CEO Ryan Noach told Bloomberg News.
* Kuwait-based Al Manar Financing and Leasing Co. KSC (Closed) appointed Faisal al-Faris deputy CEO, starting Jan 10.
POLICY AND REGULATION
* Ghana's Insurance Commission granted insurers a six-month extension to meet minimum capital requirements in light of the coronavirus crisis, Kofi Andoh, deputy commissioner at the regulator, told Bloomberg News. Underwriters now have to shore up their capital by Jan. 1, 2022.
* About 75% of companies listed on the Nairobi Securities Exchange have sound corporate governance in place, Business Daily Africa wrote, citing a report by Kenya's Capital Markets Authority. The banking sector got the "leadership" rating among the companies in the pool.
INDUSTRY NEWS
* Moody's said the outlook for sovereign creditworthiness in the Levant and North Africa is negative for 2021 amid the economic impact of the coronavirus crisis, which is expected to continue weighing down tourism, remittances and labor markets.
* The Sudanese finance ministry signed a memorandum of understanding with the U.S. Treasury that would help the North African nation clear its arrears to the World Bank, Xinhua reported. The move would allow Sudan to borrow more than $1 billion from the lender for the first time in 27 years.
MARKETS
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Sheryl Obejera, Abdelghani Henni, Sophie Davies and Mariana Aldano contributed to this report.
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