By John Lee.

Diala State Company, which is part of Iraq’s Ministry of Industry and Minerals, has announced opportunities to invest in a steam iron factory and a ceiling fan factory.

(Source: National Investment Commission)

By John Lee.

Ur State Company, which is part of Iraq’s Ministry of Industry and Minerals, has announced an opportunity to invest in the rehabilitation of an aluminium factory.

(Source: National Investment Commission)

By John Lee.

Iraq’s Ministry of Oil has announced that it will start rehabilitation of the Salahuddin refineries 1 and 2 in Baiji district.

Through its North Refineries Company (NOC), it has called on local and international companies to supply the equipment outlined below:

(Source: Ministry of Oil)

By John Lee.

Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] has hosted a meeting in Baghdad with the French Minister of State for Foreign Trade, Jean-Baptiste Lemoyne, confirming the significance of the economic and financial relations between the two countries.

Both sides expressed hopes for major cooperation in all sectors, including oil, industrial, agricultural, commercial, transportation, and housing.

Mr. Lemoyne said that he saw a keenness from the Iraqi side to encourage and invite the French companies to invest in Iraq.

(Source: Office of the Iraqi Prime Minister)

Genel Energy has announced that it has instructed the trustee for the GENEL01 bonds (ISIN: NO 001 0710 882) (‘GENEL01’ or ‘the Bonds’) to summons a bondholders’ meeting to resolve a refinancing of the existing Bonds.

The Company proposes to refinance GENEL01 through a partial early redemption and debt reduction by replacing the existing Bond Agreement with a new USD 300 million bond agreement. Bondholders holding a significant proportion of the Bonds have confirmed their commitment to vote in favour of the proposal.

In the proposal, the Company seeks to reduce its existing bond debt from the currently outstanding USD 421.8 million to USD 300 million, and at the same time extend maturity through amending and restating terms to a new 5 year bond with a coupon of 10% per annum.

Bondholders will, on a pro-rata basis, receive a partial early redemption of USD 121.8 million in cash at the prevailing call premium of 103% of par value. The remaining USD 300 million outstanding Bonds will remain outstanding with the same ISIN but with new and amended terms as set out in the term sheet described in detail in the summons for bondholders’ meeting (available at www.stamdata.com).

The bondholders meeting will be held on 20 December 2017 at 09:00 CET at the premises of Nordic Trustee AS. If approved, cash settlement and amendment of terms are expected to take place on 22 December 2017, subject to approval by the bondholders’ meeting.

The Company has mandated DNB Markets and Pareto Securities as managers for the contemplated transaction.

(Source: Genel Energy)

By Ahmed Tabaqchali (pictured), CIO of Asia Frontier Capital (AFC) Iraq Fund.

Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

The dog days of the summer extended from October into the first 10 days of November, as the 40 day Arba’een pilgrimage came to an end, with continued declines in turnover and prices.

This pattern was sharply reversed as buying interest drove prices and turnover significantly higher. The market, as measured by the RSISUSD Index, was up almost +10% by mid-month, with daily turnover almost doubling on the up days as the chart below shows, before settling in at +4.3% as the buying activity subsided.

Please click here to download Ahmed Tabaqchali’s full report.

Mr Tabaqchali is the CIO of the AFC Iraq Fund, and is an experienced capital markets professional with over 25 years’ experience in US and MENA markets.

His comments, opinions and analyses are personal views and are intended to be for informational purposes and general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any fund or security or to adopt any investment strategy. It does not constitute legal or tax or investment advice. The information provided in this material is compiled from sources that are believed to be reliable, but no guarantee is made of its correctness, is rendered as at publication date and may change without notice and it is not intended as a complete analysis of every material fact regarding Iraq, the region, market or investment.

By John Lee.

Iraq’s State Company for Steel Industries, which is owned by the Ministry of Industry and Minerals, has announced an investment opportunities to participate in the management and production of the following projects in accordance with the requirements fixed in the investment profiles:

  • Sandwich Panel production
  • Built-up sections and bridge girders production
  • Metal chains production
  • Air filters for power plants

The company invites investors, financiers and specialized companies to participate in these important opportunities because of the need for these products in the Iraqi and foreign markets.

Those willing to participate should visit the company’s main office or its website to obtain the investment profiles, in whole or in part, bearing in mind that bids are to be submitted on the company’s website or by e-mail, at the end of the official working hours of Sunday, 10.12.2017.

Those wishing to participate may consult the Ministry of Industry and Minerals / Investment dept., as well as the company’s main office if you need detailed information or have a legal or technical inquiries or a field visit to the announced projects; you may contact through:   www.scosi-mim.com, info@scosi-mim.com  .

(Source: NIC)

By John Lee.

Following Iraq’s successful return to the bond markets earlier this year, it is now reportedly planning a $2 billion sovereign bond issue in 2018.

The Governor of the Central Bank of Iraq (CBI), Dr. Ali Mohsen Ismail Al-Allaq [Alak] (pictured), told Reuters that the plan is currently awaiting parliamentary approval.

He added that Iraq’s foreign currency reserves have risen from $46.5 billion at the end of 2016 to $49 billion , helped by the increase in oil prices.

The country’s budget deficit is running at around $15.4 billion to $16.3 billion.

(Source: Reuters)

Advertising Feature

Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 16th Nov 2017).

Please click here to download a table of listed companies and their associated ticker codes.

The RSISX index ended the week at IQD815 (+6.3%) / $838 (+6.6%) (weekly change) (-15.1% and -11.6% YTD change, respectively). The number of week traded shares was 15.0bn and the weekly trading volume was IQD10.8bn ($8.5mn).

ISX Company Announcements

  • According to the letter published in The Central Bank of Iraq (CBI) website on Wednesday, a consultative meeting was held on Nov. 13, 2017 under the chairmanship of the Governor of the CBI and faculty of the CBI with heads of boards of directors and executive directors of Iraqi banks to discuss the letter of the CBI dated Nov. 7, 2017 related with the suspension of activities of branches of banks operating in the KRG. In the letter it was mentioned that The Iraq Private Banks League welcomes the directives of the CBI regarding the branches of banks in the region and appreciate what was presented at the meeting to ensure the stability of the banking sector and not subject to risk through the CBI’s guidance for upholding the needs and interests of the citizens in the region in all branches of activities in line with the decision of the Council of Representatives. On Tuesday, CBI sources told Reuters that the CBI has eased restrictions on private banks in its Kurdistan region. In addition, according to the observations of Rabee Securities, the Iraqi banks are continuing to operate in a normal way in Kurdistan region.  (CBI, Reuters, Gulf-Times)
  • The Central Bank of Iraq (CBI) decided on Thursday to increase the fines for counterfeit banknotes from 500% to 700% and fines for the shortage discovered in the banknotes from 100% to 250% with the compensation of the shortfall. (Alsumaria)
  • Cihan Bank for Islamic Investment & Finance (BCIH) will hold AGM* on Nov. 20, 2017 to discuss and approve 2016 annual financial results. ISX suspended trading of BCIH starting Nov. 15, 2017.
  • New shares of Mamoura Realestate Investment (SMRI) from the capital increase to IQD22.78bn through 15% rights and 3.6% bonus issues resumed trading on Nov. 14, 2017.
  • Babylon Hotel (HBAY) will hold AGM* on Nov. 19, 2017 to discuss and approve 2016 annual financial results and distribution of 44.5% cash dividend (IQD0.445 dividend per share, 1.3% dividend yield). ISX suspended trading of HBAY on Nov. 14, 2017.
  • Cross Transactions: 7.6bn shares of Al-Harir for Money Transfer (MTAH) on Nov. 15, 2017, which represents 17.0% of MTAH capital. 313mn shares of Asiacell (TASC) on Nov. 12, 2017, which represents 0.1% of TASC capital.

Iraq Britain Business Council holds successful Autumn Conference in Dubai

Following on from the first Iraq Britain Business Council conference in Dubai in 2016, the IBBC was delighted to host its Autumn Conference in the UAE once again. The event was strongly supported by the UAE authorities.

Alongside Baroness Nicholson, the UK Prime Minister’s Trade Envoy to Iraq and President of the IBBC, the conference was opened by H.E. Mr. Abdulla Ahmed Al Saleh, Under Secretary for Foreign Trade and Industry, UAE Ministry of Economy.

H.E. Mr. Abdulla reminded delegates that non-Oil & Gas related trade between the UAE and Iraq had already passed 11 Billion USD in 2016, with Dubai in particular being a hub for local and international companies in the region.

H.E. Mr. Abdulla firmly believes that the UAE’s role in the rebuilding of Iraq will continue to expand and expressed his wish to cooperate with organisations such as the IBBC to accomplish this crucial task.

Vikas Handa, IBBC UAE Representative and the Managing Partner of the Emirati Company DrillTech, warmly thanked the minister and stated that the IBBC stands ready to work even more closely with the UAE in Iraq.

The Government of Iraq sent a high calibre ministerial delegation led by H.E. Mr Qasim Al-Fahdawi, The Minister of Electricity, to the conference. The delegation included H.E. Mrs Ann Naufi Aussi Balbool, Minister of Construction Housing and Public Municipalities; H.E. Kadhim Fijan Al Hamami, Minister of Transport; H.E. Dr Sami Al Araji, Chairman of the National Investment Commission (NIC); and H.E. Mr Fayadh Hassan Nima, Deputy Minister of Oil for refining affairs.

The conference was structured around several sessions in which the Iraqi officials and international companies operating successfully in Iraq, most of which are members of the IBBC, exchanged their views and experiences.

These sessions focused on strengths, weaknesses and opportunities of the economy in Iraq, Reconstruction & Infrastructure, Transport, Power and Oil & Gas. In parallel, a series of high level round-table discussions between investors and Iraqi Government representatives took place.

The conference included for the first time a presentation on the rapidly developing Tech sector in Iraq , given by the CEO of Zain.

IBBC thanks the International Finance Corporation (World Bank) and the IMF for its participation. Thanks also go to the IBBC members who sponsored the conference: Gold Sponsor International Islamic Bank; Silver Sponsors Serco and Gulftainer; Lunch Sponsor Rolls-Royce; pre-reception Sponsor Wood; and Coffee Break Sponsors Eversheds Sutherland and KCA Deutag.

IBBC Managing Director, Christophe Michels, stated that the increasing involvement of the UAE and wider GCC with Iraq was a game changer for the country. The IBBC very much welcomes this development and is delighted to be part of it and support it. The organisation will increase its presence in the UAE and the Autumn Conference in Dubai will become a regular feature in its calendar of events.

(Source: IBBC)