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Commercial Bank ends United Arab Bank stake sale talks; Moody's downgrades Gabon

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Commercial Bank ends United Arab Bank stake sale talks; Moody's downgrades Gabon

* The U.K. Financial Conduct Authority is pressing ahead with plans to create a new category within its premium listing regime, effective July 1, that exempts state-controlled companies from certain requirements, seen as a controversial move to help attract Saudi Arabian Oil Co.'s planned IPO to London. The FCA said the new listing category will exempt a country from having to enter into a controlling shareholder agreement with the company it controls, adding that the requirement "can be impracticable" for sovereigns.

* Saudi Arabia has started increasing oil output as prices have risen again and amid complaints from big consuming countries including the U.S., The Wall Street Journal reported, citing oil officials in Riyadh. The move comes ahead of a June 22 meeting of countries belonging to the Organization of the Petroleum Exporting Countries and other oil producing nations, including Russia.

* Saudi Arabia, Kuwait and the United Arab Emirates issued a joint statement pledging as much as $2.5 billion in support of Jordan, including a deposit into its central bank, to help the country weather ongoing political and economic crisis, Reuters reported, citing Saudi state news agency SPA.

MIDDLE EAST AND NORTH AFRICA

* Qatar's Commercial Bank PSQC said it has ended discussions with Tabarak Investment in respect of the latter's potential purchase of the lender's stake in UAE-based United Arab Bank PJSC.

* In its forensic review of two of Abraaj Group Ltd.'s funds, audit firm Deloitte found that the firm suffered from a "lack of adequate governance" and commingled fund money with the group's own money in the healthcare fund and its fourth buyout fund due to liquidity problems, the Financial Times wrote. Deloitte, however, noted that it found no evidence that Abraaj embezzled funds. Meanwhile, Obaid al-Zaabi, head of the UAE's Securities and Commodities Authority, said the regulator is coordinating with the Dubai Financial Services Authority to determine whether Abraaj's financial troubles have affected national investors, according to Reuters.

* Separately, al-Zaabi said the regulator is planning to launch a "green securities index" as part of the sustainability project of the local financial market it recently launched, AlIttihad reported.

* Al Hilal Bank PJSC CEO Alexandre Coelho told AlIttihad that the lender's 2020 strategy will be to boost revenues by cutting expenses and hiking imposed fees. He said the bank lowered its expenses in 2017 by 2.93% compared to 2016, while revenue grew 5.8% during the same period.

* Shuaa Capital PSC said it received approvals from Abu Dhabi Global Market and the Financial Services Regulatory Authority to establish SHUAA GMC Ltd., a wholly-owned unit of SHUAA Capital PSC, which will be involved in arranging custody and advising on investment or credit, among others.

* Gulf Union Co-operative Insurance Co.'s shareholders approved the board's proposal to reduce the company's capital by 18.37% to 400 million Saudi Arabian riyals from 490 million riyals, in a bid to offset losses.

* Oman International Development & Investment Co. SAOG has issued through private placement 60,637,586 unsecured perpetual subordinated bonds with a face value of 1 Omani rial per bond.

* The Libyan central bank said it plans to impose fees on foreign currency transactions as part of efforts to bridge the gap between the official and black market rates, Bloomberg News reported. The country's official exchange rate is around 1.36 dinars to the U.S. dollar, while on the black market, the rate is at around 6.2 dinars to the dollar.

* A.M. Best upgraded the long-term issuer credit rating to "bb+" from "bb" and affirmed the financial strength rating of B (Fair) of Al Ittihad Al Watani (L'Union Nationale) Société Générale D'Assurances du Proche Orient SAL. The outlooks of these ratings were revised to positive from stable. Separately, the agency affirmed the B++ (Good) financial strength rating and the "bbb" long-term issuer credit rating of Lebanon-based Bankers Assurance SAL, with stable outlooks.

EAST AND WEST AFRICA

* Nigerian President Muhammadu Buhari approved the nomination of Folashodun Adebisi Shonubi as deputy governor of the country's central bank, The Guardian reported. The appointment remains subject to Senate confirmation.

* Tanzanian tycoons Aunali and Sajjad Rajabali have acquired 7 million Equity Group Holdings PLC shares worth 7.7 billion Kenyan shillings, now holding a 0.19% stake in the Kenyan lender, according to The Citizen.

* Eveline Tall has been named executive chairman of Senegalese private equity firm M&A Capital, Financial Afrik reported.

CENTRAL AND SOUTHERN AFRICA

* Moody's downgraded Gabon's issuer and senior unsecured debt ratings to Caa1 from B3 and revised the outlook to stable from negative, citing the government's heightened liquidity pressures and continued institutional weaknesses.

* South African insurer Sanlam Ltd. plans to enter the Ethiopian and Egyptian markets as part of an expansion strategy, CEO Ian Kirk told Financial Afrik. He added that the company plans to enter Ethiopia in 2021 and has already identified a partner in the country.

* A South African police unit dubbed the Hawks has raided the Johannesburg and Durban branches of India-based Bank of Baroda and seized documents as part of an ongoing investigation into corruption allegations involving former South African President Jacob Zuma and the controversial Gupta family, Reuters reported. Bank of Baroda emphasized that the operation was related to the Hawks' investigation into the Guptas and not an investigation into the lender, The Economic Times noted.

* South African Finance Minister Nhlanhla Nene said the government will step up its "defense mechanism" amid "very challenging times" in the country's economy, Reuters wrote. The rand dropped to 13.2875 against the U.S. dollar on June 8, its lowest level so far this year, the newswire noted.

* Mauritius-based SBM Holdings Ltd. is looking to raise more than 10 billion Kenyan shillings in fresh capital through the sale of Mauritian rupee- and U.S.-dollar denominated bonds to support the group's expansion strategy in Africa, Daily Nation wrote. The group said the capital injection will cater for regulatory requirements with respect to increased business volumes, subject to completion of unit SBM Bank (Kenya) Ltd.'s acquisition of carved out assets and liabilities in collapsed lender Chase Bank (Kenya) Ltd.

* Angola's kwanza has depreciated by 34.1% against the euro since the country's central bank abandoned its currency peg in January, Macauhub reported.

IN OTHER PARTS OF THE WORLD

Asia-Pacific: Dai-ichi Life top contender for Suncorp life ops; ICICI Bank faces US scrutiny

Deza Mones, Henni Abdelghani, Sophie Davies and Helen Popper contributed to this report.

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