HSBC Holdings Plc (HSBA) and BNP Paribas SA (BNP) are among banks extending a $1.5 billion so-called profit participating loan to Dubai-based Drydocks World LLC as it restructures debt, a person with knowledge of the talks said. The 15-year loan, part of a $2.25 billion debt restructuring for the Middle East’s biggest shipyard, will pay creditors profit or cash from asset sales, said the person, who asked not to be identified because details are private. Dubai World-controlled Drydocks also agreed on a new $800 million five-year term loan paying a market interest rate, he said. A special court in Dubai sanctioned the debt restructuring on Aug. 28 after creditors approved the plan, without providing the terms of the deal. The Dubai World Tribunal, set up in 2009 to handle claims against Dubai World and its subsidiaries, approved the restructuring after 97.8 percent of Drydocks’s creditors agreed. The tribunal can enforce a restructuring proposal if at least two-thirds of the creditors agree. A Dubai-based spokeswoman for Drydocks, who asked not to be identified because of company policy, declined to comment. A spokesman for HSBC in Dubai and a spokeswoman for BNP Paribas in Manama, Bahrain, both of whom also asked not to be identified because of company policy, also declined to comment. More»

Credit rating agency, Capital Intelligence (CI), brought good news to BankDhofar recently when it affirmed the financial strength rating of the bank. The bank's financial strength rating has been upgraded to a 'BBB+' standard from a 'BBB' standard. In its announcement, CI said that the change in the outlook was underpinned by the bank's improved asset quality, its sound capital adequacy and its good overall operating profitability. Tony Mahoney, CEO, BankDhofar, was very pleased with this affirmation by CI. "This is a very significant achievement for us. We have presented solid financials for this year and we forecast an even stronger year ahead due to the upturn in economic activity in Oman.- The bank's long-term and short-term foreign currency ratings are maintained at 'BBB+' and A2 respectively, with a support rating of 3. Key profitability indicators for the bank are strong with it being well capitalised and liquidity ratios remaining at good levels. More»

Saudi banks netted more than SR21 billion in the first seven months of 2012 as lending continued to gain momentum and allow them to net one of their highest incomes in many years, latest data from the Saudi Arabian Monetary Agency (SAMA) showed. SAMA’s monthly report showed the banks’ net earnings stood at SR21.34 billion during January-July, an average of more than SR3 billion a month. It showed banks earned SR3.46 billion in January, SR3.1 billion in February and SR2.6 billion in March, a quarterly income of nearly SR9.3 billion. The income in the second quarter stood at SR8.8 billion while it stood at SR3.23 billion in July. Recovering credit allied with higher commission and investment return boosted Saudi banks’ net profits by nearly 18 percent to around SR30.9 billion in 2011 from nearly SR26.1 billion in 2010. The surge marked a return to profit growth by the banking sector after a decline in the previous four years. More»

Banque Du Caire wins its bid to provide a finance amounting to EGP 400 million to Sigma Pharmaceutical Group after competing with five banks. The bank was competing with a consortium compromising of five banks over providing the average-term finance which will be used to finance the Company’s future expansions in Quesna and Sixth of October City, said Tamer Mostafa, deputy head of large corporate sector at Banque Du Caire. The bank disbursed the value of the seven-year term loan at the end of last week. The bank considers selling part of the loan after three banks offered to contribute to the loan, Mostafa added. Banque Du Caire focuses on financing large companies specialized in important sectors such as pharmaceutical, petroleum, electricity and mining sectors which boost the national production. Mostafa noted that the bank currently studies financing large companies specialized in mining and fertilizers production sectors, but he refused to say the name of these companies or the value of finances because of the fierce competition the bank faces over providing such loans. More»

The Industrial Development and Workers Bank of Egypt received EGP 100 million cash after settling debts worth EGP 425 million owed by 80 defaulting customers at the end of last August. The bank reduced its non-performing loan portfolio by EGP 105 million, registering EGP 1.645 billion at the end of the first half of 2012, down from EGP 1.750 billion at the end of last September, said Hamdi Azzam, member of board of directors at the bank. The bank succeeded in its plan concerning disposing of 25% of its non-performing loans during the first half of 2012. Azzam added that the bank is still in negotiations with Ramy Siag in order to reach a settlement agreement concerning his debts which exceeded EGP 300 million. The bank awaits the court’s verdict concerning the case. IDBE succeeded in achieving profit of EGP 31 million at the end of last July for the first time since 2004 after eight successive years of losses. More»