Investors in a US$650 million (Dh2,3bn) Islamic bond issued by the Saudi conglomerate Saad Group plan to set up a committee to represent their interests as the struggling firm undergoes a massive restructuring of its debt. Such committees are commonplace in debt restructurings. In the case of the Saad Group Islamic bond, called the Golden Belt 1 Sukuk, the committee would deal with Citicorp Trustee Company, the acting trustee, and "any other relevant party", according to a draft resolution obtained by Reuters. A banker in Dubai who has seen the document said it was "anybody's guess" how effective the committee would be in representing investor interests, but noted that Saad had $30 billion in assets and roughly $20bn in debt, leaving investors with a reasonable level of confidence that they would be repaid. The troubles at Saad Group started in late May, when it was revealed that Saudi authorities had frozen bank accounts owned by Maan al Sanea, the conglomerate's billionaire chairman. Credit ratings agencies swiftly downgraded Saad and its subsidiaries, and the company said early last month that it was restructuring its debt. This sent ripples of concern through banks in the Middle East, many of which are owed money by the firm and had considered it a safe investment. Several banks in the UAE, including Abu Dhabi Commercial Bank, Mashreqbank, First Gulf Bank and Union National Bank, admitted they were owed money by Saad, but all so far have said their exposures were manageable. HSBC recently estimated that Saudi banks alone were owed between $4bn and $7bn by Saad, and Ahmad Hamad Algosaibi and Brothers, another struggling Saudi conglomerate that is restructuring its debts. The Golden Belt 1 sukuk, which is scheduled to mature in 2012, constitutes just a small part of Saad's overall debt. The draft resolution to form the committee to participate in restructuring talks was sent to numerous regional banks, according to Reuters, though it is unclear whether all of them are investors in the sukuk. They include Dubai Bank, National Bank of Abu Dhabi, Abu Dhabi Islamic Bank and Mashreqbank. With additional reporting by H Michael Jalili * with Reuters
- ‘In banking, go big or go home’, says ADIB chief behind turnaround
- In pictures: ADIB’s goal to be role model of Islamic banking
- Sharjah Islamic Bank first-quarter profit up 30% to Dh110 million
- NBF Capital sets up shop in DIFC
- Dubai-based Abraaj acquires stake in chocolate maker Kool Food
- An opportunity for both reflection and revelry as DIFC turns 10
- Most Viewed
- Most Commented
- A cool Dubai penthouse treat at 1,000 feet, yours for Dh25 million
- In pictures: Penthouse flat is height of Dubai luxury living
- Emirates Airline to take Dh1 billion hit during Dubai airport runway upgrade
- Abu Dhabi-owned Mubadala triples profit in 2013 to Dh1.5 billion
- GlobalFoundries partners with Samsung to produce next-generation chips for smartphones
- Most Viewed
- Most Commented
- History shines light on the true borders of Palestine
- Reduce speed limit buffer on UAE roads, experts urge
- American ‘has UAE Embassy documents’ to back up medicinal marijuana claim
- Nakheel to sell plots for hotels and resorts on Dubai’s Deira Islands
- UAE’s healthcare system must grant equitable access to all
In pictures: Where Dubai rents have risen and fallen, Q1 2014
Find out how rental prices in the prime locations in Dubai have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.
In pictures: Penthouse flat is height of Dubai luxury living
A five-bedroom penthouse in Ocean Heights in Dubai Marina is on sale for Dh25 million and comes with a private pool and an unparalleled view of Dubai.
In pictures: Best business images for the week to April 17, 2014
Here are some of the best business images for the week to April 17, 2014.
In pictures: Shopper’s delight at Crawford Market in Mumbai
Crawford Market is an old British-style covered market dealing in just about every kind of fresh food and domestic animal imaginable. Later on renamed Mahatma Jotirao Phule, the market remains popular among locals and visitors by its old name, taken from Arthur Crawford who was the first municipal commissioner of the city.
April corporate and economic calendar for the UAE and overseas
From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.
Rates report: Latest on UAE loans, accounts and credit cards
Souqamal.com brings you the latest interest rates on banking products in the UAE.