Capital Market – Premudraja http://premudraja.net/ Tue, 24 May 2022 08:30:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://premudraja.net/wp-content/uploads/2021/06/icon-4-150x150.png Capital Market – Premudraja http://premudraja.net/ 32 32 Inventories of capital goods fell slightly https://premudraja.net/inventories-of-capital-goods-fell-slightly/ Tue, 24 May 2022 08:30:00 +0000 https://premudraja.net/inventories-of-capital-goods-fell-slightly/ Capital goods stocks were trading in the red, with the S&P BSE Capital Goods Index falling 275.05 points or 1.03% to 26384.95 at 1:47 p.m. IST. Among the constituents of the S&P BSE Capital Goods Index, Graphite India Ltd (down 3.3%), Carborundum Universal Ltd (down 3.29%), Praj Industries Ltd (down 3.03%) , Bharat […]]]>

Capital goods stocks were trading in the red, with the S&P BSE Capital Goods Index falling 275.05 points or 1.03% to 26384.95 at 1:47 p.m. IST.

Among the constituents of the S&P BSE Capital Goods Index, Graphite India Ltd (down 3.3%), Carborundum Universal Ltd (down 3.29%), Praj Industries Ltd (down 3.03%) , Bharat Forge Ltd (down 2.18%), Thermax Ltd (down 1.97%), were the big losers. Other losers included Lakshmi Machine Works Ltd (down 1.94%), Larsen & Toubro Ltd (down 1.85%), Hindustan Aeronautics Ltd (down 1.61%), HEG Ltd (down down 1.32%) and Bharat Heavy Electricals Ltd (down 1.17%). %).



In contrast, SKF India Ltd (+5.22%), Schaeffler India Ltd (+3.22%) and Timken India Ltd (+2.22%) advanced.

As of 1:47 p.m. IST, the S&P BSE Sensex was down 82.12 or 0.15% at 54206.49.

The Nifty 50 index fell 22.6 points or 0.14% to 16192.1.

The S&P BSE Small-Cap Index lost 133.52 points or 0.51% to 26048.54.

The S&P BSE 150 Midcap Index fell 24.72 points or 0.31% to 7951.29.

On the BSE, 1134 stocks were trading green, 2090 were trading red and 139 were unchanged.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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For markets, inflationary fears come with risks of recession https://premudraja.net/for-markets-inflationary-fears-come-with-risks-of-recession/ Sun, 22 May 2022 15:30:45 +0000 https://premudraja.net/for-markets-inflationary-fears-come-with-risks-of-recession/ “Sell in May and walk away,” goes the old market adage, referring to the tendency for stocks to underperform from May through October. The third week of May 2022 could be seen as a bigger tipping point. The sharp falls in US and other markets last week were when a selloff that had started in […]]]>

“Sell in May and walk away,” goes the old market adage, referring to the tendency for stocks to underperform from May through October. The third week of May 2022 could be seen as a bigger tipping point. The sharp falls in US and other markets last week were when a selloff that had started in the more speculative assets and tech stocks and spread to more profitable and established tech names became much broader. This reflects a change in investor sentiment. Concerns about inflation were joined by worries about recession – a recession that central banks could cause or deepen in their efforts to cool economies.

The catalyst, surprisingly, was revenue from two of the biggest big-box retailers, Walmart and Target. Both said sales increased but profits fell due to rising costs and tighter margins. Both saw double-digit price declines closer to the moves seen in non-profit growth stocks than in reliable sellers of consumer goods. The market sell-off spread to other consumer staples stocks.

Clear signs that even these powerful retailers were struggling to pass on cost pressures have prompted investors to fear that record corporate profit margins and buoyant consumer spending in the United States, which have supported market returns these last few years, come to an abrupt end. This took concerns into new territory. Previously, the withdrawal of cash after years of cheap money had mostly scoured the more speculative assets, including cryptocurrencies. The prospect of higher interest rates has primarily hit technology and growth stocks whose valuations hinge on higher earnings in the distant future.

Growing concern about the impact of the Federal Reserve’s response to inflation coincides with problems elsewhere. The lockdowns caused by China’s zero Covid policy are both stunting domestic growth and numbing international supply chains. European consumers are being squeezed by soaring energy prices due to Russia’s war in Ukraine.

That leaves markets at a delicate point, and some fund managers fear that if they enter a steeper slide, structural issues could amplify price drops. A new generation of portfolio managers has limited experience in managing bear markets. Trading conditions are tougher, in part because banks have been forced by capital adequacy rules to store intraday securities and smooth large moves as they did before the 2008 financial crisis. who have made bad speculative investments may be forced to sell off better quality assets.

Such doomsday scenarios might not happen. A closer look at Walmart and Target’s earnings reveals that they have accumulated unusually large inventories – in Target’s case, big-ticket items such as furniture and TVs that consumers were buying during the pandemic but less now – and have had to cut prices to clear them. If what we’re seeing is any sign that a late shift in the pandemic – the bias in US demand toward goods and away from services – is playing out, it could help rein in inflation by removing a force that had been supercharging the markets. price of goods. The asset price falls to date will also have wealth effects that could still make it easier for the Fed to meet its targets without raising rates as far as it might have expected.

With US inflation above 8% and Treasuries – unusually – also sold off in recent weeks, there are few safe places for investors. Commodities and energy stocks may be safer than some, though investors may need to be wary of ESG concerns. But amid such uncertainty, another market adage that has proven a successful strategy during recent corrections – “buy the dip” – doesn’t seem like a safe bet.

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3 off-price retailers that look like bargains in the stock market wreckage https://premudraja.net/3-off-price-retailers-that-look-like-bargains-in-the-stock-market-wreckage/ Sat, 21 May 2022 01:13:00 +0000 https://premudraja.net/3-off-price-retailers-that-look-like-bargains-in-the-stock-market-wreckage/ TJ Maxx’s parent company, TJX, reported earnings that beat Wall Street expectations. Cindy Ord/Getty Images Text size Two of the top three off-price retailers released quarterly results this week, with starkly different results. This leaves Burlington Stores , which reports May 26. Three key factors could determine Burlington’s stock reaction. In an otherwise brutal week […]]]>

TJ Maxx’s parent company, TJX, reported earnings that beat Wall Street expectations.

Cindy Ord/Getty Images

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Jason Colodne and Colbeck Capital Management support HealthRight https://premudraja.net/jason-colodne-and-colbeck-capital-management-support-healthright/ Wed, 18 May 2022 13:07:00 +0000 https://premudraja.net/jason-colodne-and-colbeck-capital-management-support-healthright/ HealthRight is a non-profit group that benefits greatly from the support of companies such as Colbeck Capital Management. The funds are used for community health solutions that focus on improving the quality of care, removing barriers to access, and education that can reduce the marginalization of underserved populations. HealthRight’s efforts are having a global impact […]]]>

HealthRight is a non-profit group that benefits greatly from the support of companies such as Colbeck Capital Management. The funds are used for community health solutions that focus on improving the quality of care, removing barriers to access, and education that can reduce the marginalization of underserved populations. HealthRight’s efforts are having a global impact with ongoing programs in Ukraine, Uganda, Kenya, Vietnamand United States. Four main program areas address health issues that primarily affect populations, including HIV, mental health and violence, and women’s, children’s and adolescents’ health issues.

Colbeck Capital Management has sponsored the Peter C. Alderman Award for Health and Human Rights in previous years to gain support for health as a basic human right. HealthRight continues to “empower marginalized communities to lead healthy lives” with efforts extending to war-torn areas. This year’s event will also pay tribute to the courageous individuals who strive to provide essential health and social services to those affected by Russia invasion of Ukraine.

About HealthRight International

For 30 years, HealthRight International (www.healthright.org) is committed to helping marginalized communities and delivering programs that support rights-based care. All over the world there are communities that have been excluded, persecuted or forgotten by the community at large. HealthRight was started by Dr. Jonathan Mann in 1990 and continues to bring sustainable health solutions to areas facing lack of access or affected by unusual challenges.

About Colbeck Capital Management

Colbeck Capital Management is a leading middle-market private credit manager focused on strategic lending. Colbeck partners with companies during times of transition, providing creative capital solutions. Colbeck sponsors its portfolio companies through ongoing engagement with management teams in areas such as finance, capital markets and growth strategies, distinguishing itself from traditional lenders. Founded in 2009 by Jason Colodne and Jason Beckmanexecutives have extensive experience investing through market cycles in top-tier institutions such as Goldman Sachs and Morgan Stanley.

SOURCEColbeck Capital Management

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Altamont Capital Partners Provides Growth Capital to Fleming Holdings https://premudraja.net/altamont-capital-partners-provides-growth-capital-to-fleming-holdings/ Mon, 16 May 2022 20:26:00 +0000 https://premudraja.net/altamont-capital-partners-provides-growth-capital-to-fleming-holdings/ PALO ALTO, Calif., May 16, 2022 /PRNewswire/ — Altamont Capital Partners announced today that the company has acquired a majority stake and made a $150 million growth capital commitment to Fleming Holdings (“Fleming”). The partnership will enable Fleming to become a global provider of capital solutions for property and casualty insurance companies. Fleming is a […]]]>

PALO ALTO, Calif., May 16, 2022 /PRNewswire/ — Altamont Capital Partners announced today that the company has acquired a majority stake and made a $150 million growth capital commitment to Fleming Holdings (“Fleming”). The partnership will enable Fleming to become a global provider of capital solutions for property and casualty insurance companies.

Fleming is a property and casualty insurance capital solutions provider currently focused on liquidation and legacy reserve transactions. The company, led by Eric Hallerwas founded by Fleming Corp, a private equity fund based in Greenwich, Connecticut. Haller is a seasoned industry executive with work experience at XL, Athene, R&Q and Safe Harbor Re. Fleming brings a unique level of sophistication and creativity to his specific market segment, focusing on smaller transactions or more complex, which are generally not the priority of traditional insurers.

“This investment will help accelerate Fleming’s growth by focusing innovation in the insurance liability secondary market,” said Stephen MinorFounder and CEO of Fleming Corp. “Altamont’s experience and expertise in the financial services and insurance industries make it an excellent partner for our long-term growth.”

“Our partnership with Fleming is the first step in a long-term plan to become the best-in-class capital solutions provider for the P&C insurance industry,” added Altamont’s CEO. Sam Gaynor. “We can add tremendous value by taking a sophisticated, personalized approach to insurance capital management, and we look forward to bringing our solutions to market.”

Joe Zukan operating partner of Altamont, added, “Through forward-looking and backward-looking strategies, as well as insurance-linked investment solutions, we plan to further establish Fleming as a specialist in helping clients find innovative ways to increase their return on equity.

“We are proud to partner with Fleming and build on our successes by supporting proven teams who understand specific financial services markets and know how to deliver much-needed products to underserved customers,” said the CEO of Altamont. Keoni Schwartz. “As with similar investments, we expect to realize a number of mutually beneficial partnership opportunities with the other companies in our portfolio.”

Altamont was advised on the transaction by RBC Capital Markets LLC as financial advisor and Sidley Austin LLP as legal advisor.

About Fleming Holdings
Fleming Holdings is a property and casualty insurance capital solutions company that includes a Bermudaclass 3A reinsurance company. Fleming has built a solid reputation for providing a full range of reinsurance structures and definitive solutions for legacy liabilities, as well as liquidity and risk transfer alternatives to the insurance industry of the market. intermediate. Fleming and his management team have extensive experience working on capital strategies for insurance companies in the United States, BermudaCayman, United Kingdom and European Union. www.flemingreinsurance.com

About Altamont Capital Partners
Altamont Capital Partners is a private equity firm based in the San Francisco Bay Area with over $4.5 billion of assets under management. Altamont focuses on investing in middle-market companies where it can partner with top-tier management teams to help its portfolio companies reach their full potential. Company leaders have significant experience in building business success across a range of industries, including financial services, healthcare, business services, consumer/retail and industrials. Altamont has been an active investor in the insurance industry, with current investments in Accelerant Holdings, Kuvare Holdings and Embark General, in addition to Fleming. Altamont was previously an investor in Celestite Holdings and McLarens Global.

SOURCE Altamont Capital Partners

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https://premudraja.net/3382-2/ Sat, 14 May 2022 16:56:21 +0000 https://premudraja.net/3382-2/ Majestic First Silver (NYSE:AG – Get a rating) (TSE:EN) had its price target lowered by equity researchers at BMO Capital Markets from C$12.00 to C$10.50 in a report on Friday, Fly reports. A number of other stock analysts have also recently commented on the stock. Zacks Investment Research upgraded shares of First Majestic Silver from […]]]>

Majestic First Silver (NYSE:AG – Get a rating) (TSE:EN) had its price target lowered by equity researchers at BMO Capital Markets from C$12.00 to C$10.50 in a report on Friday, Fly reports.

A number of other stock analysts have also recently commented on the stock. Zacks Investment Research upgraded shares of First Majestic Silver from a “strong sell” rating to a “hold” rating in a Tuesday, March 22 research note. TheStreet upgraded First Majestic Silver’s shares from a “c” rating to a “d+” rating in a Friday, April 22 research note. StockNews.com began covering First Majestic Silver shares in a research note on Thursday, March 31. They set a “sell” rating for the company. National Bank Financial raised its price target on shares of First Majestic Silver from C$17.00 to C$18.00 in a Wednesday, April 20 research note. Finally, TD Securities lowered its price target on shares of First Majestic Silver from C$20.00 to C$12.00 in a research note on Friday. One equity research analyst gave the stock a sell rating, three gave the company a hold rating and three gave the company a buy rating. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $15.63.

(A d)

What is the most productive stock you have ever owned? Dividends from these stocks have grown so rapidly over the years that they now earn us an average of 26%!

When you start getting paid 26% on your money, your financial troubles tend to evaporate.

NYSE:AG shares traded at $0.68 at midday Friday, hitting $8.11. 411,298 shares of the company were traded, against an average volume of 6,037,545. The company has a current ratio of 2.30, a quick ratio of 1.95 and a debt ratio of 0.15. The company’s fifty-day moving average is $12.38 and its two-hundred-day moving average is $11.84. First Majestic Silver has a one-year minimum of $7.24 and a one-year maximum of $18.93. The stock has a market capitalization of $2.12 billion, a PE ratio of -405.30 and a beta of 1.01.

Majestic First Silver (NYSE:AG – Get a rating) (TSE:FR) last released its quarterly earnings data on Thursday, March 10. The mining company reported EPS of $0.02 for the quarter, missing the consensus estimate of $0.07 per ($0.05). First Majestic Silver posted a negative net margin of 0.84% ​​and a positive return on equity of 0.45%. The company posted revenue of $204.90 million for the quarter, versus a consensus estimate of $263.74 million. In the same quarter last year, the company achieved EPS of $0.11. First Majestic Silver’s revenue for the quarter increased 75.0% compared to the same quarter last year. As a group, sell-side analysts expect First Majestic Silver to post 0.26 EPS for the current year.

A number of large investors have recently increased or reduced their holdings in AG. Van ECK Associates Corp increased its position in First Majestic Silver by 9.6% during the first quarter. Van ECK Associates Corp now owns 26,164,514 shares of the mining company worth $344,324,000 after buying an additional 2,293,995 shares in the last quarter. Norges Bank acquired a new stake in First Majestic Silver during Q4 for a value of approximately $19,635,000. Aaron Wealth Advisors LLC purchased a new equity stake in First Majestic Silver in Q1 valued at $126,536,000. Dimensional Fund Advisors LP increased its stake in shares of First Majestic Silver by 127.3% in the first quarter. Dimensional Fund Advisors LP now owns 1,322,713 shares of the mining company worth $17,408,000 after acquiring an additional 740,867 shares during the period. Finally, Mirae Asset Global Investments Co. Ltd. increased its holdings of First Majestic Silver shares by 18.0% during the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 4,202,344 shares of the mining company worth $46,809,000 after purchasing an additional 641,019 shares in the last quarter. 39.65% of the shares are currently held by institutional investors.

First Majestic Silver Company Profile (Get a rating)

First Majestic Silver Corp. engages in the acquisition, exploration, development and production of mineral properties with an emphasis on the production of silver and gold in North America. It owns 100% interest in the San Dimas silver/gold mine covering an area of ​​71,868 hectares located in the states of Durango and Sinaloa; the Santa Elena silver/gold mine covering an area of ​​102,244 hectares located in Sonora; Jerritt Canyon Gold Mine which covers an area of ​​approximately 30,821 hectares located in Elko County, Nevada; and the La Encantada silver mine covering an area of ​​4,076 hectares located in Coahuila, as well as a surface landholding of 1,343 hectares.

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Analyst Recommendations for First Majestic Silver (NYSE:AG)

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Everest Re Expands Use of ILS Investor Capital: Mt. Logan President Modin https://premudraja.net/everest-re-expands-use-of-ils-investor-capital-mt-logan-president-modin/ Fri, 13 May 2022 13:00:29 +0000 https://premudraja.net/everest-re-expands-use-of-ils-investor-capital-mt-logan-president-modin/ Global insurance and reinsurance company Everest Re is expanding its use of capital from insurance-linked securities (ILS) investors, with its third-party venture capital Mt. Logan Re Ltd. a central part of the company’s efforts to reduce its disaster exposures, according to John Modin, president of Mt. Logan Re.As we recently announced, Everest Re continued to […]]]>

Global insurance and reinsurance company Everest Re is expanding its use of capital from insurance-linked securities (ILS) investors, with its third-party venture capital Mt. Logan Re Ltd. a central part of the company’s efforts to reduce its disaster exposures, according to John Modin, president of Mt. Logan Re.

As we recently announced, Everest Re continued to take steps to reduce its exposure to property catastrophe volatility in the first quarter of the year, with its excess of loss reinsurance business writing falling to just 16 % of its first trimester. quarter pound.

Key to the effort to reduce its catastrophic PMLs is Everest Re’s third-party capitalized ILS structure, Mt. Logan Re, which should benefit the reinsurer by providing a complementary capital platform with risk appetite. of disaster.

Speaking to Artemis in a recent interview, Mt. Logan Re President John Modin explained why this is important.

“As part of our work to manage and reduce catastrophic PML, we are expanding our sources of underwriting capital, optimizing our balance sheet capital structure and expanding our use of capital from ILS investors, particularly in our Mt. Logan vehicle” , said Modin. “These collective efforts will improve our risk-adjusted operating margin while reducing volatility. It also creates a proactive and scalable management model and results in an optimized capital structure that enables dynamic allocation of capital to the most attractive opportunities.

“Mt. Logan Re and our other third-party capital structures give Everest a distinct competitive advantage by allowing us to provide significant capacity to our customers while managing our portfolio volatility and lowering our cost of capital. At the same time , we are able to offer competitive returns to our capital markets partners based on their respective risk appetite through a suite of products. We have built Mt. Logan into a strong branded entity and we we are committed to the platform and have ambitious plans to grow AUM,” he continued.

Everest Re expects to achieve this in the coming year, partnering with new sources of third-party capital through the Mt. Logan Re vehicle, while tapping into bond investor appetite. disasters through its well-established Kilimanjaro Re cat bond series.

Also demonstrating his commitment to working with third-party capital, Modin highlighted his own hiring by Everest Re to lead the Mt. Logan Re division, as well as the recent hire of Greg McBride as global head of marketing and business development. and Clint Graham as Chief Underwriting Officer, as well as the latest from veteran retirement investor Youssef Sfaif joining Mt. Logan Re as Chief Operating Officer.

This platform build comes amid reinsurance rate tightening and Everest Re’s optimization of its catastrophe exposure, providing a good opportunity for Mt. Logan Re to grow its asset base this year, it seems. he.

Modin sees traction building, saying “we added a new investor on January 1, 2022 and are in discussions with several others about future subscriptions.”

Adding that “Everest, Mt. Logan, our principal investors and certain potential investors all recognize the long-term performance and diversification value of ILS/Mt. Logan and we are all committed to continuing to invest in it for the long term.” ”

Modin also believes that the broader financial and capital market volatility that has been observed will work in favor of ILS as a diversified asset class.

“The risk aversion sentiment in equities and credit as well as the current tough market experienced by all lines of P&C insurance have reminded investors of the unique diversification benefit that the insurance-linked asset class introduced when added to a traditional investment portfolio,” Modin explained.

For Everest Re, Mt. Logan continues to be used in the same way, but its importance may be increasing as the company seeks to manage its disaster exposure more proactively.

“We continue to use Mt. Logan on the same long-term, consistent basis as it always has – as a way to share a single portfolio of Everest-underwritten risks with our financial partners, giving them access to our global expertise. UW, and in turn providing Everest with additional UW capacity and fee revenue,” Modin said.

Further explaining that “like Everest shareholders, Mt. Logan investors have benefited from the improvement in 2022 in the overall quality of the underlying portfolio as well as the high rate environment.”

As we explained in a recent article, Everest Re CEO Juan Andrade recently said that as his company refines its underwriting portfolio, it finds that trading more profit, for less exposure, is exceptional.

Mt. Logan Re is an important lever for maximizing the benefits of this portfolio steering and optimizing cat exposure for the business.

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AMC sets tough rules for small companies issuing bonds https://premudraja.net/amc-sets-tough-rules-for-small-companies-issuing-bonds/ Wed, 11 May 2022 21:00:56 +0000 https://premudraja.net/amc-sets-tough-rules-for-small-companies-issuing-bonds/ Capital markets AMC sets tough rules for small companies issuing bonds Thursday, May 12, 2022 Luke Ombara, director of regulation, policy and strategy at the Autorité des marchés financiers (CMA). PICTURES | NJAU SALATON | NMG By OTIATO GUGUYUMore from this author Summary The Capital Markets Authority (CMA) has imposed tough conditions on small businesses […]]]>

Capital markets

AMC sets tough rules for small companies issuing bonds


Luke Ombara, director of regulation, policy and strategy at the Autorité des marchés financiers (CMA). PICTURES | NJAU SALATON | NMG

BDgeneric_logo

Summary

  • The Capital Markets Authority (CMA) has imposed tough conditions on small businesses seeking to raise less than a quarter of a billion shillings in Kenya’s capital market.
  • The regulator’s proposed rule will allow small businesses that do not meet these conditions to issue debt securities in the capital market if they can provide guarantees from a bank or insurance company.

The Capital Markets Authority (CMA) has imposed tough conditions on small businesses seeking to raise less than a quarter of a billion shillings in Kenya’s capital market.

Small businesses will have to be in business for two years, have a minimum issued share capital of 10 million shillings and can only borrow four times the level of funds from their shareholders.

SMEs wishing to list debt securities must also provide approvals from the regulator of their sector, audited financial reports and must have both executive directors, non-executive directors and independent directors with intact backgrounds.

The regulator’s proposed rulemaking will, however, allow smaller companies that cannot meet these conditions to issue debt securities in the capital market if they can provide guarantees from a bank or insurance company.

“Where the issuer fails to meet any of the requirements of this appendix, it may obtain credit enhancement to secure the securities it seeks to issue,” says the draft offer registration and disclosure rule. public.

The CMA is setting up the new fixed income market segment for SMEs – SME FISMS for the listing of debt securities between 20 and 250 million shillings.

Cheaper option

Issuers will be allowed to raise funds in note sizes above Sh10,000 deposited in an independent bank.

The regulator is trying to create an alternative for small businesses to access cash from banks which costs more than raising money from the public.

[email protected]

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GCC takes the lead in ESG sukuk issuance, Saudi Arabia becomes largest market https://premudraja.net/gcc-takes-the-lead-in-esg-sukuk-issuance-saudi-arabia-becomes-largest-market/ Tue, 10 May 2022 05:43:32 +0000 https://premudraja.net/gcc-takes-the-lead-in-esg-sukuk-issuance-saudi-arabia-becomes-largest-market/ Environmental, social and governance (ESG) sukuk issuance, including green and sustainability-related sukuk, was dominated by financial institutions primarily based in the GCC in the first quarter of 2022, although most issuance came from the financial sectors. energy and utilities. Historical ESG Sukuk Emissions 2018–Q1 2022 Issuance reached $2.4 billion in the first quarter of 2022, […]]]>

Environmental, social and governance (ESG) sukuk issuance, including green and sustainability-related sukuk, was dominated by financial institutions primarily based in the GCC in the first quarter of 2022, although most issuance came from the financial sectors. energy and utilities.

Historical ESG Sukuk Emissions 2018–Q1 2022

Issuance reached $2.4 billion in the first quarter of 2022, slightly lower than the $2.5 billion issued during the same period in 2021, according to global data provider Refinitiv. The $900 million debut issuance from Bahrain-based Infracorp, the infrastructure investment arm of Gulf Finance House (GFH), was the largest ESG sukuk issued during the quarter.

Two other early issues, also from financial institutions, were from Saudi Arabia; the Saudi National Bank and Riyadh Bank issued sustainability-related sukuk worth $750 million each.

The sukuk issued by Riyadh Bank was the first sustainability-related Supplemental Level 1 (AT 1) sukuk in the world. The issuance proceeds are expected to provide Shariah-compliant financing and refinancing for select sustainable projects, in line with the Bank’s Sustainable Financing Framework. Saudi Arabia is the only jurisdiction of the Organization of Islamic Cooperation (OIC) and one of the few on the Asian continent, along with the ESG AT1 sukuk.

GCC Sovereigns Tapping the ESG Debt Market for a Broader Investor Base

ESG investment opportunities are emerging rapidly in GCC markets. Governments looking to invest heavily in the renewable energy sector and companies are integrating ESG principles into their operations and financing, which is expected to reshape the financial landscape in the region.

Issuers in the region have also come under pressure from foreign investors, mainly European and American, to respond to the demand for investments classified as “green” or “linked to sustainable development”, which could eventually become a point of access to tap into international capital. markets.

ESG sukuk issued by GCC-based entities, which began in 2018, reached a total value of $10.6 billion, or 59% of cumulative global issuance through the first quarter of 2022. Saudi Arabia is now become the largest market for ESG sukuk, by total value. of $7.9 billion.

ESG Sukuk issuance by country 2017–Q1 2022

GCC governments will debut in ESG debt markets this year, with sovereign green issues from Qatar and Saudi Arabia scheduled for 2022.

In March, Qatar’s finance ministry announced the government’s plan to issue international green bonds, after holding talks with lead arrangers in January. “We don’t expect a big size, it’s going to be very small,” Qatari Finance Minister Ali Al-Kuwari said. “I think what is more important than that is that we need to build a vision and a strategy for climate change in the financial sector,” he added.

The Saudi government and Saudi sovereign wealth fund, the Public Investment Fund (PIF), are also preparing to issue their first green bonds this year, with the aim of diversifying and broadening their investor bases in addition to financing the Kingdom’s transition to a greener economy. economy.

Some of the region’s regulators have also worked to integrate ESG bonds and sukuk into their capital markets regulations. The Qatar Financial Center (QFC) has launched the first sustainable GCC sukuk and bond framework to further develop the local debt market.

“The objective of this framework is to encourage further development of the local debt capital market by diversifying options for borrowers and investors and laying a solid foundation for building trust between these stakeholders,” said said QFC Authority CEO Yousuf Mohamed Al-Jaida.

The framework is based on the Green Bond Principles (GBP), Social Bond Principles (SBP) and Sustainable Bond Guidelines (SBG) of the International Capital Markets Association (ICMA). It focuses on promoting appropriate disclosure, the flow of relevant information, reporting and transparency to ensure ESG objectives are met and greenwashing risks are minimized.

Meanwhile, the Oman Capital Market Authority (CMA) is developing its bond and sukuk regulations, which will also cover sustainable and responsible (SRI) investments, including but not limited to social (waqf), sustainable, green and, for the first time, blue investments. sukuk.

For more information and analysis on sukuk market size and trends, please visit the Refinitiv Workspace/Eikon app, Sukuk now.

(Reporting by Jinan AlTaitoon edited by Seban Scaria)

jinan.taitoon@lseg.com

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Need advice on navigating a tough startup market? Start here – TechCrunch https://premudraja.net/need-advice-on-navigating-a-tough-startup-market-start-here-techcrunch/ Fri, 06 May 2022 19:16:37 +0000 https://premudraja.net/need-advice-on-navigating-a-tough-startup-market-start-here-techcrunch/ The startup investment market has changed. From the hottest year in early-stage venture capital history to a time of pessimism, how did we get to where we are today? The following summary of TechCrunch coverage seeks to answer that question. We begin with a series of historical stories starting last December, going through the beginning […]]]>

The startup investment market has changed. From the hottest year in early-stage venture capital history to a time of pessimism, how did we get to where we are today?

The following summary of TechCrunch coverage seeks to answer that question. We begin with a series of historical stories starting last December, going through the beginning of the year until we reach the latest data from the VC ecosystem. Then we end with stories that have some advice. It sounds good ? Let’s go.

How we got to today

The shift in the market began last year, with stock prices plummeting, leading TechCrunch to wonder if the ground was shifting under startups’ feet.

The era of ultra-rich software valuations may be over (December 2021)

After the venture capitalist goat rodeo of 2021 – companies were raising two or even three times a year – it came as a surprise when public markets started to turn bearish while the private market was still in bullish mode. Our question ended up being answered with a resounding yes over time.

Will the latest sale finally upend the way investors value startups? (January 2022)

By January, it was clear that something had changed. Now our question was how fast and where the damage would land. Startups can operate outside the bounds of public market sentiment, but the wider the gap, the less likely such different centers of gravity can hold.

Here’s how much VCs lowered seed revenue expectations with Series B (January 2022)

Alex Wilhelm reviewed data from Kruze Consulting to understand how startup growth rates were changing and what venture capitalists expected in terms of revenue performance before lifting a particular round. The essential? Things in January were still very hot. We include this particular entry to remind ourselves that while the pullback is clear, even during the market correction there were signals pointing the other way.

3 views: How should founders prepare for a drop in startup valuations and investor interest? (January 2022)

TechCrunch set to work to understand how the startup fundraising market was changing. Data for the first quarter of 2022 ended up being somewhat fine, but the damage accumulates more as the quarter progresses. In January, it was still hot, even though the rumblings of uh oh were starting to accumulate.

This is not a starter account, this is a rework (February 2022)

Back in February, our own Natasha Mascarenhas was already beginning to name the market shift, relying on the phrase “recorrection.” It was a witty way of noting that we were going through a correction of a correction. First, startups hit the brakes when COVID landed and the economy froze; then, as 2020 and 2021 progressed, they corrected their stance toward peak burn and peak growth. By the second month of the year, it was clear that a new behavioral adjustment was making its way through the market.

So how much have things changed?

We have a lot on this topic, so we picked and picked a little. The following should provide a good overview of our recent work to understand exactly where startups and their backers stand today.

It’s prime season for early-stage startups (March 2022)

Layoffs can be one of the clearest signals that a startup is under duress, but it’s not the only one. In this article, Natasha discusses how early-stage startups are pivoting — before the cuts — to be more cash-efficient, revenue-focused, and risk-averse.

If early investors continue earlier, what will happen? (April 2022)

Natasha wrote about the mixed messages in the startup world right now: early-stage investors are getting more disciplined and cash-rich, but at the same time early stage investors are getting there sooner. Investors push founders to be skinny, but at the same time offer them $10,000 to take the PTO for a week and try their hand at entrepreneurship. The article examines how shifting priorities could force emerging fund managers to change strategy (or fragment their path to failure).

How much has late-stage venture capital slowed down? (April 2022)

The changing pace of the market is no joke – so TechCrunch has been busy trying to sort through the commentary data, seeking to draw a more accurate picture of the new normal. The bottom line is that late-stage trading is going through a seismic shift, while the other levels in the starter series are a bit more stable, if not quite healthy.

Consumer Fintech Trading Revenue Lacks SaaS ARR (April 2022)

Part of the market shift regarding the value of startups and their recently publicized brethren is the fact that many concerns received earnings multiples that did not match their actual earnings profile. By this we mean that some software companies were rated as SaaS companies, even though they weren’t. Watching these companies unravel billions in valuation has been a lesson that during hot spells, many companies will get a valuation that is actually a bad fit. It’s just to notice that early this is the hardest part of the investment game.

Here’s how much startup valuations fell in the first quarter of 2022 (May 2022)

We have seen new highs reached over the past few years and now valuations are falling. Alex Wilhelm looked at Carta data to see where. Boot cycles decreased by approximately 5% from Q4 2021 to Q1 2022. Series A and B decreased by approximately 25% and 8%, respectively, from Q3 2021 to Q1 2022.

And now?

Finally, a few notes on what to do in this changed world.

The Cram Downs are a character test for VCs and Founders (April 2022)

If it came down to this, would you pay to play? Now they are back as the economy begins to change and investors are once again faced with this question. Steve Blank explains why a founder would agree to cram down – and advice on what he could do instead.

Does your startup have enough lead? 5 factors to consider (April 2022)

If you’re not good at budgeting, it’s time to learn for the good of your startup. Marjorie Radlo-Zandi explains the importance of making sure you have enough money to fund your startup. Your lead will vary depending on the industry you’re in, but Radlo-Zandi walks you through how to calculate that number and what to do if you get lost.

How to Pitch Me: 6 Investors Discuss What They’re Looking For in April 2022 (April 2022)

Walter Thompson takes a timely and honest look at what worries investors in today’s market. As he notes, Carta says the number of seed deals funded between Q4 2021 and Q1 2022 dropped by 41%. Dollar volume also fell from $2.62 billion to $1.81 billion, a 31% decline. The survey gathers insights from investors including 500 Global CEO Christine Tao and Maveron partner Anarghya Vardhana to understand what they are looking for when dollar tranches get smaller.

What am I now? (April 2022)

This is probably the question on everyone’s mind right now. As public market values ​​are reduced, how does this impact the startup community and, more importantly, you? This article includes an applicable valuation framework and other factors that may affect your price. Depending on where you are, today’s moment can be a refresh, a reset, or a full reckoning.

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