22/10/2014
Three of them exceeding the Amount of billion riyals
«French Capital»: arrangements for an initial 5 proposals in the Saudi market until the end of 2015
CEO of Saudi Fransi capital investment division of Saudi fransi Banque said his company is working on an initial order of five presentations from three major approaches, each of which exceeds billion riyals (266.7 million dollars) you will see the light in sequence during the coming period until the end of 2015. The Saudi stock market is the largest among its peers in the Gulf market saw five preliminary submissions in 2013 with a total value of $ 506 million. But this year may be more active for reasons including a part of the national commercial bank in Saudi Arabia in terms of assets. Alrmyan told the Reuters Investment Summit in the Middle East have excellent deals in progress of submissions of large size and attractive sectors. We believe that we will see an initial proposition of Saudi fransi capital each quarter over the next five seasons. ' said the three proposals which would be great.
ALrmyan who took office in the Saudi fransi early 2011 that includes a preliminary release of Habib medical group, one of the largest health care providers in the private sector and ACWA working on water and electricity projects to Petromin lubricating Oil Company is the oldest in the Middle East. He said: ' the size of each of these three arguments put forward will exceed billion...Our list of the top. We have put in the iron and steel industry and in the construction and building materials sector ' but refused to go into details. Alrmyan predicted strong growth for the bond market and the instruments under new rules for the Saudi Central Bank designed to put maximum borrowing per client to meet most banks limit lending and are forcing companies to look for other options for funding.
He said: ' this will mean that the big companies will be forced to resort to either bond or debt markets instruments and this excellent news for companies that offer services like financial advice '. The company is currently working on two versions but did not elaborate on the details. He said: ' we analyzed and we found that a bank or two only remained far from the ceiling for lending but other banks despite the capital increase through versions of instruments that would not help them much as they grow rapidly and could not keep pace with the growth in their portfolios '. Financial market authority seeks to develop market instruments to be easier on companies issuing Islamic bonds. Only the sukuk market is currently 3 per cent of GDP for Saudi Arabia while in similar markets and world markets from 50 to 100 per cent. Asked about the most important challenges to the development of local bond market, Alrmyan said that the main challenge lies in taking exporters prefer to bank financing due to low interest rates.
He said: ' the challenge now is to encourage exporters good to release ... The appetite of investors in the Saudi market is very large and there are a lot of fund managers are eagerly awaited by financial markets which version of religion '. Asked about the possibility of opening the domestic bond market to foreign investors as the stock market, Alrmyan said that the arguments of some bonds already available to international investors as those denominated in dollars raised abroad or as medium-term euro bonds. He said: ' I don't think there's any limit to open the bond market. The decision by the regulators. The stock market was not open for foreigners in any directly but in the bond market, the least specific versions are available to international investors. Only challenge is to attract more versions. '
