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TOP NEWS IN MIDDLE EASTERN AND AFRICAN FINANCIALS
* S&P Global Ratings expects GDP growth in the Gulf Cooperation Council countries to slowly recover from 2020's sharp recession triggered by the COVID-19 pandemic and low oil prices. The rating agency expects long-lasting adverse effects from the 2020 shock on GCC economies and banking sectors. Saudi Arabia and Qatar's banking sectors will be less impacted than those in the United Arab Emirates, Oman and Bahrain, while in Kuwait the story will depend on the evolution of the fiscal impasse.
* Saudi British Bank has completed its merger with Saudi Arabia-based peer Alawwal Bank. All products and services are now combined for all customers, SABB said.
➤ GP-led transactions expected to dominate PE secondaries dealflow
As of March 4, 2021, global secondaries dry powder sits at a record $133.8 billion, up 9% from 2020-end, according to Preqin data.
➤ Renewables insurer unfazed by Texas freeze but extreme weather risks set to rise
Wind turbines are likely to have weathered the Texas storm with minimal direct damage, according to an insurer with 10 GW of assets under coverage in the state. However, extreme weather events in the region pose increasing risk to operators.
BANKING
* Angola-based Banco de Poupança e Crédito SA plans to dismiss up to 2,000 employees by June, in an effort to cut costs and allow for the continuity of operations, Jornal de Negócios reported. After the restructuring plan is over, BCP expects to save €10.7 million in direct and indirect costs.
* Bank of Bahrain & Kuwait BSC said Ernst & Young and Freshfields Bruckhaus Dereinger have joined the team in charge to carry out due diligence over the acquisition of certain assets of Ithmaar Holding BSC.
* Oman-based Bank Muscat SAOG successfully closed a five-year, $500 million bond issuance under a euro medium-term note program. The deal was oversubscribed 4x and carries a coupon of 4.75%.
* National Bank of Oman SAOG appointed Ali bin Mustafa Al Lawati as head of private banking, the Times of Oman reported.
* Israel-based The First Digital Bank has begun operations, Globes reported. Shareholder Amnon Shashua is reportedly seeking a partner to share control of the bank.
* Regional lender African Export-Import Bank will implement a $1 billion continental transit guarantee scheme after signing an intersurety agreement for the COMESA region, ThisDay reported.
FINANCIAL SERVICES
* Kuwait's Capital Markets Authority has suspended the trading of Al Madina for Finance and Investment Co. KSCP on money-laundering accusations and referred it to the public prosecutor for further investigation to scrutinize all its financial transactions. The authority also canceled the company's securities license.
* Saudi Arabia-based Axa Cooperative Insurance Co. CEO Gary Lewin died March 12. The company intends to announce the appointment of a new CEO at a later date.
* Kuwait's First Takaful Insurance Co. KPSC formed a new board of directors chaired by Abdullah al-Asfour and vice chaired by Hussain al-Attal.
* Nigeria-based Custodian & Allied Insurance Ltd.'s appointment of Edeki Isujeh as new CEO and managing director was approved by National Insurance Commission, Leadership reported.
* Muscat Insurance Co. SAOG said Bipin Nensey has resigned from the directorship of the Oman-based company, effective Dec. 10, 2020.
* Agusto & Co. Ltd., a pan-African credit rating agency, expects the ongoing recapitalization of the Nigerian insurance industry to improve insurers capacity to underwrite risks, ThisDay wrote.
POLICY AND REGULATION
* South African central bank Governor Lesetja Kganyago said the sovereign is "no way near debt distress" despite an increase in the country's debt-to-GDP ratio, Reuters wrote. "Debt is an outcome of your fiscal policy stance, so for as long as you are running a fiscal policy deficit you will have debt," Kganyago reportedly said. Meanwhile, S&P Global Ratings lead emerging market economist Tatiana Lysenko said Brazil and South Africa's finances are at risk from fiscal weakness from volatility domestic debt market, Reuters reported.
* The Ghanaian government said in its 2021 budget that of the 8.5 billion cedis required to help pay investors of failed asset management companies, 3.1 billion cedis was approved in the 2020 mid-year budget. To fully settle investors of remaining 17 asset management companies, 5.5 billion cedis is required.
INDUSTRY NEWS
* The United Arab Emirates launched a $10 billion strategic Israel investment fund, Globes reported.
* Kenya's foreign exchange reserves fell to $7.35 billion on March 11 from $7.61 billion at February-end, hurt by external loan repayments, Daily Nation wrote.
* The U.N. Security Council urged Somalia to organize elections without delay, Bloomberg News reported.
* Turkish leaders said the country resumed diplomatic contact with Egypt, Reuters reported.
Sheryl Obejera, Abdelghani Henni, Sophie Davies and Mariana Aldano contributed to this report.
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