Tag Archive | "Citigroup"

Iraq to Issue $5bn in Bonds

By John Lee.

Finance Minister Hoshyar Zebari (pictured) said on Wednesday that Iraq has decided to issue $5 billion in international bonds, as it attempts to finance a budget deficit of $25 billion for the current year.

He told reporters in Washington that negotiations were in progress with Citibank and Deutsche Bank, but according to Reuters declined to say what maturity and interest rates were being considered.

He also confirmed that Iraq has also asked the International Monetary Fund (IMF) for relief funding of between $400 million and $700 million.

The government has also managed to borrow $7 billion from semi-state-owned Iraqi banks to cover its shortfall, Zebari said.

(Sources: Reuters, BasNews)

Posted in Banking & Finance, PoliticsComments (5)

Citi to Advise on $2bn Loan for Boeing Jets

By John Lee.

The Deputy Transport Minister, Bangen Rekani, has told Bloomberg that Iraq will seek $2 billion in financing to cover part of the cost of the 40 jets it has on order from Boeing.

Iraq ordered 30 737-800s in 2008, followed by 10 787-8 long-haul Dreamliners in 2009, and a single 777 in 2012 — three planes have been delivered to date and two more are due in the coming weeks. The total value of the deal is reported to be $5 billion at current list prices.

The Deputy Minister added that Citigroup will be invited to advise on the plan, and a committee drawn from Iraq’s transport and finance ministries, Central Bank and Iraqi Airways, has been formed to negotiate the funding.

The U.S. Export-Import Bank (Ex-Im Bank) facility is expected to be in the range of $1.5 billion to $2 billion.

Iraqi Airways also has a letter of intent to purchase five CS300 CSeries narrow-bodies from Bombardier, worth $387 million at list prices, plus 11 options that would take the value to $1.26 billion.

We need a lot of funds,” Rekani said. “We’re in a race to complete the maximum number of projects in a short time.

(Source: Bloomberg)

Posted in Banking & Finance, Investment, TransportationComments Off

Eversheds Advises Citi on Iraq Venture

Global law firm Eversheds has advised Citibank [Citigroup] on the registration of its representative office in Baghdad, Iraq, making it the first US bank to establish a presence in the country.

According to Citi’s press release, the representative office in the Iraqi capital will support Citi’s clients in the country, and the New York-based bank will also seek to open two more offices, in Erbil and Basra, in the future.

The Eversheds team, led by Partner Tawfiq Tabbaa (pictured), advised Citibank on all aspects of project.

Tawfiq said:

Iraq is a hub of opportunities for global businesses and is fast becoming an important market in the Middle East.

(Source: Eversheds)

Posted in Industry & TradeComments (1)

Citigroup May Fund Iraq-Jordan Pipeline

By John Lee.

Forty companies are reported to be bidding for contracts to build and finance the new pipeline from Haditha to Jordan’s Red Sea port of Aqaba (pictured).

Nateq Balasem Khalaf, deputy director general of the state State Company for Oil Projects (SCOP), told Bloomberg that Citibank is among the bidders, adding that other interested banks and companies are from Russia, South Korea, Japan, Italy, China, Egypt, Jordan, and Germany.

The new crude pipeline would carry 1 million barrels a day, including 150,000 barrels a day for Jordan’s domestic consumption, and the rest for export, while the gas pipeline would transport 252 million cubic feet a day, of which 100 million cubic feet would be exported to Jordan.

SNC-Lavalin Group (SNC) is advising the government on ways to build new routes to export oil currently shipped via pipeline to Turkey and by sea through the Persian Gulf.

Khalaf said that the government plans to build and finance a separate section of the network itself to Haditha from Basra, for which it will ask for bids from pipeline suppliers by the end of the year.

Citigroup, a U.S. lender scaling back in some emerging markets, plans to open offices and branches in Iraq to benefit from an estimated $1 trillion of infrastructure spending there, Mayank Malik, the bank’s chief executive officer for Jordan, Iraq, Syria and the Palestinian territories, said in a June 27 interview.

Iraq will start operating its third offshore export facility for crude by the end of the year and plans to upgrade its two onshore terminals at Basra and Khor al-Amaya, Khalaf said. The government is building 16 crude-storage tanks in the southern port of al-Faw, each with a capacity of 58,000 cubic feet. Four are operational, another four are to be completed by the end of July and the rest by year-end, he said.

Iraq is on track to increase crude exports to 3.5 million barrels a day by the end of 2013, Khalaf said. The country produced 3.15 million barrels a day to 3.2 million barrels a day on average in June, according to an e-mailed Oil Ministry statement on June 29.

(Source: Bloomberg)

Posted in Construction & Engineering, Oil & GasComments Off

Citi Opens New Office in Baghdad

The U.S. Embassy in Baghdad hosted a reception to celebrate the opening of Citi’s representative office in Baghdad. Citi [Citigroup] is the biggest financial services corporation in the United States.

U.S. Ambassador to Iraq Stephen Beecroft stated during the ceremony:

U.S. companies, such as Citi, are demonstrating tremendous commitment to Iraq. Our companies bring capital and expertise, world-leading technology, and innovative management and financing practices.

They also bring the highest international standards of corporate governance, work-force training, corporate social responsibility and connectivity to the global economy. In deciding to open an office here Citibank has recognized the promise that Iraq’s future holds.

Working together, Citi and Iraq can attract even more investment and business from U.S. and international firms.

Mr. James Cowles (pictured), Citi’s Chief Executive Officer for Europe, the Middle East & Africa, said;

“Iraq is an important market, with an economy that has substantial potential over time. Having a presence in Iraq will position us to better attune our services to the banking needs of our clients as they grow and develop their businesses in the country.

The U.S. Embassy in Baghdad worked closely with the Central Bank of Iraq and Citi in the months leading up to the announcement.Citi’s operations in Iraq will strengthen U.S. and Iraqi economic ties by fostering trade and infrastructure development, and by bolstering economic and financial institutions.

(Source: Embassy of the United States)

Posted in Banking & FinanceComments (2)

Zain Takes Step towards IPO

By John Lee.

Zain Iraq has moved a step closer to launching its mandatory initial public offering (IPO), by establishing a new holding company in Iraq through which it will list 25 percent of its shares on the Iraq Stock Exchange (ISX) towards the end of the year.

The new company, named Al-Khatem Telecommunications, floated 55.9 million shares on June 4 for one Iraqi dinar per share. The subscription period will last 30 days.

According to a report from The National, once this IPO is complete, the company can proceed with the 25 percent share offering for Zain Iraq.

Wael Ghanayem (pictured), the chief financial and operating officer at Zain Iraq, said:

If you look at our growth in Iraq, we believe the IPO will be attractive and there will be good demand for the stock … This is the second IPO, people are more educated about the processes.

Zain Iraq has hired Citigroup, the National Bank of Kuwait and BNP Paribas as advisers for the offering.

The company, with about 14 million subscribers, recorded a profit of $369 million last year, up 6 per cent from 2011.

It issued the following official statement on the move:

Posted in Investment, Telecoms/CommsComments (4)

Zain Iraq Plans IPO by July

John Lee.

Zain Iraq‘s Chief Financial Officer, Wael Ghanayem (pictured), has told Bloomberg that the company plans to list 25 percent of its shares on the Iraq Stock Exchange  (ISX) by the end of June.

But Geoffrey Batt, managing director of the $44 million Euphrates Iraq Fund, told the news agency:

A more realistic estimate is Zain will be positioned to list about six months after they convert to a joint stock company … At the moment, they need to overcome too many procedural hurdles to list by June 30.

The share sale plan follows the successful IPO of rival Asiacell, which started trading in Baghdad earlier this month.

Zain Iraq is in the final stages of converting into a shareholding company, and has hired Citigroup, National Bank of Kuwait and BNP Paribas as advisers for the offering. The company’s profit climbed 6 percent in 2012 to $369 million and it expects “double-digit” growth this year, Ghanayem said.

Korek Telecom, part-owned by France Telecom, must also sell 25 percent of its shares on the bourse to comply with it license requirement.

(Source: Bloomberg)

Posted in Investment, Telecoms/CommsComments Off

Zain Iraq Invests $20m to List on Stock Market

Iraq’s biggest mobile phone operator, Zain Iraq, has invested about $20 million in its efforts to list on the local stock exchange, according to a report from Reuters.

Chief executive Emad Makiya told the agency:

We have invested a lot of money. We have invested over $20 million in this. We have hired lawyers, we have brought (in) bankers … There are so many processes involved, so many things. It is not as easy as you think.

Zain has appointed BNP Paribas, Citigroup and National Bank of Kuwait to run its offering.

As part of the $1.25 billion operating licence it won in 2007, the company was required to list on the Iraq Stock Exchange (ISX) by August of last year, but along with rivals Asiacell and Korek it failed to do so.

The first step for the three operators is to convert to shareholder-owned companies and then obtain approval from the ISX board and Iraq’s securities commission, but so far only Asiacell has transferred into a shareholders’ company.

Zain, which has about 12.5 million subscribers, announced on Thursday that it had dropped prices for all its tariffs in Iraq, lowering the price for all calls made between 8am and midnight by 30 percent.

Makiya said he was hopeful the mobile phone company would be granted a 3G operating licence this year and said that it planned to market more aggressively in the autonomous northern Kurdish region, where it only started operation in early 2011 and lags behind its competitors.

“Our entry into Kurdistan was a bit late, but that doesn’t mean we are going to stop investing,” he said.

(Source: Reuters)

Posted in Telecoms/CommsComments (1)

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