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KFH seeks to buy AUB in $8.8B deal; Japan's MUFG to build MEA banking network

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KFH seeks to buy AUB in $8.8B deal; Japan's MUFG to build MEA banking network

* Japan's MUFG Bank Ltd. plans to launch an online platform to cater to clients seeking to expand in the Middle East, Africa and parts of Europe, where it does not have a strong presence or network, an unnamed official told Reuters. The MUFG Trade Club platform would link MUFG clients into a wider network of 13 other banks, including South Africa's Standard Bank Group Ltd.

GULF COOPERATION COUNCIL

* The board of Kuwait Finance House KSCP has approved the due diligence report on its proposed takeover of Bahrain-based Ahli United Bank BSC, as well as the final share swap ratio for the deal, in which KFH will offer 1 of its own share for every 2.325581 shares in AUB-Bahrain. The all-share deal is valued at roughly $8.8 billion and will see the combined entity potentially becoming the Gulf region's sixth-biggest lender with assets of $100 billion, Bloomberg News noted.

* Ahli United Bank and its Kuwait-based unit Ahli United Bank KSCP have concluded the sale of their respective shareholdings in Kuwait and Middle East Financial Investment Co. KSCP to Al-Thekeir General Trading and Contracting Co.

* SHUAA Capital PSC's shareholders approved a plan to change the company's name and adapt the Abu Dhabi Financial Group brand following the completion of the merger between the two firms.

* Actis LLP has agreed to take over management of two more buyout funds raised by The Abraaj Group, according to documents seen by The Wall Street Journal. This signals that the breakup of the collapsed Dubai-based private equity firm is nearly complete.

* Bank of Sharjah PJSC issued $600 million in international bonds maturing Sept. 18, 2024, according to Cbonds. The notes carry a fixed-rate 4% coupon.

* Moody's lowered the baseline and adjusted baseline credit assessments of Oman-based Bank Dhofar SAOG to "ba3" from "ba2" and affirmed the lender's long-term local- and foreign-currency bank deposit ratings at Ba1 and Ba2, respectively, with negative outlooks. Also affirmed were the bank's Not Prime short-term bank deposit ratings, Ba1/Not Prime long- and short-term counterparty risk ratings and Ba1(cr)/Not Prime(cr) long- and short-term risk assessments.

* Capital Intelligence Ratings upgraded the long-term foreign-currency rating of Bank AlJazira to A- from BBB+ and assigned it a bank standalone rating of "bbb", with stable outlooks on both ratings. The agency also affirmed the Saudi Arabian lender's short-term foreign-currency rating at A2 and assigned it a core financial strength rating of "bbb-" and an extraordinary support level of High.

REST OF MIDDLE EAST AND NORTH AFRICA

* Misr Life Insurance Co. has invested some 250 million Egyptian pounds in its digital transformation ambition, with a view to complete the process in February next year, Chairman and CEO Ahmed Abdel Aziz told Amwal Al Ghad.

EAST AND WEST AFRICA

* Nigerian payments firm Interswitch Ltd. is in talks with potential anchor investors as it seeks to begin the process for its planned London IPO as early as November, insiders told Bloomberg News. Meanwhile, CFO John Maguire told Bloomberg that Interswitch plans to issue bonds of as much as 30 billion naira, with an initial 20 billion-naira tranche slated over the next two years, to fund operations as it seeks a mobile payments license in Nigeria.

* Lagos-based Zenith Bank PLC received valid tenders of roughly $392.6 million for its redemption of a $500 million bond. The bank said it will pay $1,085 for every valid note of a principal amount of $1,000.

* Nigeria-based Universal Insurance Plc named Jasper Osita Nduagwuike a nonexecutive director.

* African Export-Import Bank and Ugandan President Yoweri Museveni have agreed to house the lender's East African branch in the country, Business Daily Africa wrote. A formal agreement will be signed Sept. 19. The bank had long sought to establish the branch in Nairobi but approvals were delayed.

* SBM Bank (Kenya) Ltd. and payments firm UnionPay International Co., Ltd. will launch a debit card product to ease transactions for local companies importing from China, Business Daily Africa reported. The card will be issued under the shilling currency, with plans to add the Chinese yuan and the U.S. dollar in the future.

* The Kenyan Treasury's mobile-based bond M-Akiba failed to reach its target to raise 500 million shillings, having received only 263 million shillings, Business Daily Africa reported. The bond attracted additional 51,461 new accounts.

CENTRAL AND SOUTHERN AFRICA

* Economists surveyed by Reuters expect South Africa's central bank to maintain its repo rate at 6.50% during its monetary policy meeting next Thursday, and said any further rate cut would depend on a credit rating review by Moody's in November. A rate cut to 6.25% is also not expected until May next year.

* Sanlam Select has changed its name to Amplify Investment Manager, an asset manager with an AUM of over 8 billion South African rand, CNBC Africa reported.

IN OTHER PARTS OF THE WORLD

Asia-Pacific: HKEX open to up LSE bid; Malaysia keeps key rate; Salesforce funds open banking

Europe: LSE gets £32B bid; HSBC mulls French retail arm sale; Bankia trial delayed

Latin America: Argentina unveils more currency controls; Brazil tax chief sacked

North America: Square sues San Francisco; Va. banks in deal; NY bank warns of possible fraud

Global Insurance: Uninsured children in US up; mining insurance commentary; opioid settlement

Deza Mones, Henni Abdelghani, Pádraig Belton and Mariana Aldano contributed to this report.

The Daily Dose Middle East and Africa has an editorial deadline of 5 a.m. London time. Some external links may require a subscription. Links are current as of publication time, and we are not responsible if those links are unavailable later.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.