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Wednesday, 15 September 2021

Global debt reaches record USD 300 tn -IIF

Global debt reaches record USD 300 tn: There’s more debt around than ever before, though the debt-to-GDP ratio decreased for the first time since the pandemic on the back of a rebound in growth, according to a report by the Institute of International Finance (IIF) picked up by Reuters. Total debt — all the money owed by all the governments, households, businesses and banks — increased by USD 4.8 tn at the end of March to hit USD 296 tn at the end of 2Q2021, USD 36 tn above pre-pandemic levels. The debt-to-GDP ratio, meanwhile, was down to 353% by the end of June as the global economy picked up pace after hitting a record high of 362% in 1Q

Emerging markets took on more debt at the quickest pace: Emerging-market debt increased by USD 3.5 tn in the second quarter to hit almost USD 92 tn, while debt in emerging markets excluding China hit a record USD 36 tn as government borrowing increased.

FROM THE REGION-

The IPO of Saudi renewable energy giant ACWA Power will be the largest in Riyadh since Aramco’s USD 30 bn offering in 2019, Bloomberg says. The firm has set a price range for the listing at SAR 51-56 per share, valuing the company at some USD 11 bn and setting it up to raise around USD 1.2 bn when it floats 81.2 mn shares on the Tadawul next month.

The IPO timetable: Bidding and book-building for the listing will run from 15-27 September, while a final price will be announced before the subscription period for individual investors from 29 September to 1 October. JPMorgan, Citigroup, Riyad Capital and Natixis are the joint financial advisors.

ADNOC Drilling IPO sees huge demand: ADNOC Drilling has increased the size of the private placement portion of its IPO to USD 1 bn due to huge investor demand, sources told CNBC. The volume of bids exceeded USD 750 mn within hours of bidding opening, prompting the investment banks to raise the size of the offering. The company announced yesterday that it will be offering 7.5% of its drilling unit at Dhs 2.3 per share, valuing the company at USD 10 bn. Sources added that ADNOC Drilling could consider increasing the stake offered, which could eventually be worth up to USD 1 bn. ADNOC Drilling is expected to list on the ADX on or around 3 October.

AFC will support climate adaptation in Africa with a new USD 500 mn fund: The Africa Finance Corporation is planning on raising USD 500 mn in the next 12 months, and USD 2 bn over the next three years as part of its climate resilient fund, launched by its new independent asset management arm, AFC Capital Partners, according to a press release. The fund aims to improve the quality of African ports, roads, bridges, rail, telecommunications, clean energy, and logistics in the face of rising temperatures and sea levels due to climate change.

Up

EGX30

11,188

+0.4% (YTD: +3.2%)

None

USD (CBE)

Buy 15.66

Sell 15.76

None

USD at CIB

Buy 15.66

Sell 15.76

None

Interest rates CBE

8.25% deposit

9.25% lending

Down

Tadawul

11,373

-0.1% (YTD: +30.9%)

None

ADX

7,761

-% (YTD: +53.8%)

Down

DFM

2,880

-0.3% (YTD: +15.6%)

Down

S&P 500

4,443

-0.6% (YTD: +18.3%)

Down

FTSE 100

7,034

-0.5% (YTD: +8.9%)

Up

Brent crude

USD 73.97

+0.6%

Up

Natural gas (Nymex)

USD 5.26

+0.6%

Up

Gold

USD 1,807.10

+0.7%

Up

BTC

USD 46,615

+3.6% (as of midnight)

THE CLOSING BELL-

The EGX30 rose 0.4% at yesterday’s close on turnover of EGP 1.7 bn (9.8% above the 90-day average). Regional investors were net buyers. The index is up 3.1% YTD.

In the green: Elsewedy Electric (+6.4%), TMG (+3.5%) and Pioneers Holding (+3.3%).

In the red: EKH (-1.5%), Rameda (-1.4%) and Speed Medical (-1.2%).

Most Asian markets are down in early trading this morning after disappointing Chinese data indicated the economy continued to slow in August. Futures suggest that European shares will open in the red this morning while US shares will see early gains.

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