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CAPITAL MARKETS-
Mizuho Financial Group launched the One ETF FTSE Saudi Arabia Index on the Tokyo Stock Exchange, according to a press release (pdf). The USD 100 mn ETF is anchored by Mizuho Bank and the Public Investment Fund (PIF) and is the largest such ETF on TSE. It’s unclear whether this is the same fund the Group previously planned to launch with PIF.
REMEMBER- Mizuho is reportedly looking to open its regional headquarters in the Kingdom after receiving a license from the Investment Ministry. The firm has participated in debt capital market transactions for clients including PIF, the Finance Ministry, and Aramco, among others. It has had an investment banking license in Riyadh since 2009.
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DEFENSE-
The Ministry of Defense will buy three Avante 2200 warships from Spanish shipbuilder Navantia with deliveries slated for completion by 2028, state news agency SPA reports.The first vessel in the series will be built in Spain, with the remaining two to be built in Saudi.
DEBT WATCH-
#1- The Saudi Electricity Company secured a USD 3.6 bn syndicated loan from a group of 13 international lenders, it said in a disclosure to Tadawul. The five-year facility can be extended for two additional years and will be allocated for “financing general corporate purposes.” The lenders include banks from China, Germany, India, the UAE, and Kuwait, with the Saudi Investment Bank being the only local bank.
#2- Saudi Awwal Bank wrapped up its SAR-denominated Additional Tier 1 Sukuk issuance, which includes a fixed-rate tranche of SAR 3.65 bn offering an annual yield of 6.07% and a floating-rate tranche of SAR 350 mn, it said in a disclosure to Tadawul. The floating-rate tranche will offer a yield linked to the three-month Saibor rate, plus an additional 1.3%, paid quarterly, it added. The sukuk are perpetual, with no fixed redemption date, though early redemption is possible under specific conditions.
#3- The Jeddah-based International Islamic Trade Finance Corporation earmarked USD 566 mn in on-lending facilities to 13 banks in Uzbekistan to support SMEs and job creation in the Central Asian country, state news agency SPA reported. The facilities will focus on import and pre-export finance for the private sector.
#4- Home improvement retailer Saudi Company for Hardware (Saco) lined up a SAR 50 mn, six-month loan from Saudi Awwal Bank to refinance letters of credit, it said in a disclosure to Tadawul.
MANUFACTURING-
Baalbaki Chemical Industries (BCI) inaugurated a new factory in Riyadh’s Second Industrial City, with an initial production capacity of 40k tons a year, state news agency SPA reports. The company plans to ramp up the facility’s annual production to 60k tons next year. The factory focuses on manufacturing raw materials for the automotive, pipeline, air conditioning, home appliances, and insulation industries.
TECH REGULATION-
Sdaia puts new data protection rules draft up for public consultation: The Saudi Data and Artificial Intelligence Authority (Sdaia) is calling for public feedback on a draft paper (pdf) for rules governing the issuance of accreditation certificates for personal data protection. Feedback can be submitted through the Istitlaa platform until 11 January 2025.
What’s in the new draft? If enacted as is, it would stipulate that entities applying for the certificate must have the necessary technical tools and maintain approved records on organizational, administrative, and technical measures for secure data processing.
What are the certificates for? The accreditation certificates are issued for entities that need to process personal data — namely data processors and data controllers — to ensure the procedures are executed in compliance with the Personal Data Protection Law.
TECHNOLOGY-
Neom eyes localizing construction robotics technology: The Neom Investment Fund made an undisclosed investment in Denmark-based GMT Robotics to localize the use of robotics in the construction industry, according to a press release.
MINING-
Amak bags yet another mining exploration license: Tadawul-listed Almasane Alkobra Mining (Amak) has landed an exploration license from the Industry and Mineral Resources Ministry to look for chromium, copper, nickel, and manganese in Al Baha Province, it said in a disclosure to Tadawul. The license covers a 91.8 sq km area and runs through December 2029. The investment value was not disclosed.
BACKGROUND- The company snapped up a five-year quartz exploration license in Najran and Asir in August. Earlier in July, it was granted a five-year exploration license for manganese ore in Al Baha province. It also landed two exploration licenses in June, worth a total of SAR 92 mn, covering Jabal Qaran and Al Hijra, which hold reserves of gold, copper, lead, and zinc.
