Arab National Bank

Fitch Downgrades 3 Saudi banks To Negative, Low Oil Prices Hobble Growth

The long-term issuer default ratings of Saudi British Bank, Banque Saudi Fransi and Arab National Bank were revised to negative from stable
Ratings agency Fitch has downgraded the outlooks on 3 Saudi Arabian banks as low Crude Oil prices continue to plague the Kingdom’s economy.
The long-term issuer default ratings of Saudi British Bank, Banque Saudi Fransi and Arab National Bank were revised to negative from stable, Fitch said in a statement.
The revision was based on the tougher operating environment facing the Saudi Arabian banking sector, mainly due to the effect of lower Crude Oil prices on government spending and the filter down effect this has on the rest of the economy.

Arab National Bank places $533m sukuk

Saudi Arabia's Arab National Bank has issued SR2 billion ($533 million) of 10-year sukuk through a private placement, the kingdom's seventh largest lender by assets said in a bourse statement on Thursday. The bank has the right to call the sukuk after five years, it said. The yield was expected to be 140 basis points over the six-month Saudi interbank offered rate, the statement added. The proceeds of the issue will enhance the bank's capital in addition to allowing it to expand its activities through its Islamic window, the bank said.

Arab National Bank wins approval for 2 bln riyal sukuk

Saudi Arabia's Arab National Bank has received regulatory approval to raise 2 billion riyals ($533.28 million)through sukuk which will enhance its supplementary capital. The kingdom's seventh-largest lender by assets will privately place the Tier 2 sukuk with a tenor of 10 years although it allows the issuer to redeem the security after five years. Arab National Bank joins a string of Saudi Arabian banks that have sought to replenish their capital reserves in the last couple of years by issuing capital-boosting bonds and bonus shares following a period of strong lending growth. Capital reserves are high in Saudi Arabia due to the kingdom's conservative regulatory standards.

Zain Saudi Arabia closes SAR 2,250 Million Multi-Currency Syndicated Loan Facility

Arab National Bank (ANB) in cooperation with Al Khalij Commercial Bank (al khaliji), Banque Saudi Fransi and Gulf International Bank funded a 2 years facility for Zain KSA which has the purpose to refinance and upsize an existing US$ 585 million facility.

Saudi shares fall on bank loan provisions

Saudi Arabian shares fell for a fourth day after banks in the kingdom reported lower third- quarter profit on provisions for bad loans.
Saudi banks have been hurt since the onset of the global credit crisis as provisions for bad loans rose and lending slowed after the Saad and Algosaibi business groups defaulted on at least US$15.7 billion of loans. Saudi British Bank, the lender 40% owned by HSBC Holdings Plc, Al-Rajhi Bank, Saudi Arabia’s biggest by market value, and Arab National Bank were among 10 out of the 11 banks in the nation that reported a decline in third-quarter profit last week.
The country’s banks will be required to make 100% provisions against non-performing loans, central bank Governor Muhammad al-Jasser said in an interview shown on Dubai-based Al Arabiya television on October 12.

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