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DNO Completes $400m Bond Placement

DNO ASA, the Norwegian oil and gas operator, has completed the private placement of USD 400 million of new, five-year senior unsecured bonds to be issued at 100 percent of par with a coupon rate of 8.75 percent. The bond placement received strong investor demand across international markets and was oversubscribed.

The bond issue is expected to be settled on or about 31 May 2018, subject to customary conditions precedent. An application will be made for the bonds to be listed on the Oslo Stock Exchange.

In connection with the bond placement, the Company has agreed to roll over USD 200 million in nominal value of DNO01 bonds (ISIN: NO0010740392) at 103.25 percent of par plus accrued interest into the new bond. The rolled over bonds will be canceled and USD 200 million of outstanding DNO01 bonds will remain.

Net proceeds from the new bonds will be used towards refinancing the outstanding DNO01 bonds and for general corporate purposes.

Pareto Securities AS acted as lead manager and bookrunner with Danske Bank and SpareBank 1 Markets AS as co-managers and bookrunners.

(Source: DNO)

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DNO Contemplates New Bond Issue

DNO ASA, the Norwegian oil and gas company with operations in Iraqi Kurdistan, is contemplating the issuance of a new, five-year senior unsecured bond with a minimum size of USD 400 million through a private placement.

The coupon rate and the issue size will be determined during the accelerated book building commencing today.

The net proceeds from the contemplated bond issue will be used towards the refinancing of DNO’s existing DNO01 bond (ISIN NO 0010740392) and for general corporate purposes.

Existing DNO01 bondholders that participate in the contemplated new bond issue will be given the opportunity to offer part or all of their DNO01 bonds at 103.25 percent of par plus accrued interest at settlement of the contemplated new bond issue.

Pareto Securities AS is acting as lead manager and bookrunner with Danske Bank and SpareBank 1 Markets AS acting as co-managers and bookrunners.

(Source: DNO)

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Iraq Investment and Reconstruction Opportunities Forum

Under the Patronage of H.E Prime Minister, Dr. Haider Al Abadi, organized by the General Secretariat of the Council of Ministers and the National Investment Commission (NIC) in cooperation with Economy and Business Group, the Iraq Investment and Reconstruction Opportunities Forum was held in Baghdad on Thursday the 26th April witnessing a wide local, Arab and international participation.

Dr. Sami R Al Araji, Chairman of the National Investment Commission confirmed in his opening speech that this forum is completing what has been achieved in the Kuwait international conference held last February where 212 strategic and medium  investment project were presented out of 1100 project in the investment map for 2018. This forum gave the opportunity to many businessmen who missed the chance to participate in the conference to discuss new projects in different fields.

It also witnessed singing memoranda of understanding and granting a number of investment licenses. He expressed his happiness for Iraq embracing more than 700 businessmen from public, private and international community.

Dr. Mehdi Al Alaq, the General Secretary of the Council of Ministers greeted the attendees on behalf of the Prime Minster and conveyed his wishes for more success and support for the economic sector to secure a safe investment environment.

He added, the resolutions issued by the Council of Minister before the Kuwait conference event confirmed the Prime Minister’s approached to support this vital sector, pointing at the efforts of the follow up team to organize the official obligations offered by countries and funds as discussions have already started to fulfill their commitment. He also expressed his faith that the next few months will witness a big reconstruction and investment activity supported by the government.

He was open to discuss any difficulties facing investors while he thanked all those who participated in launching this economic forum.

Mr. Nail Al Kabarity, chairman of the Arab Trade Chambers called to invest in Iraq because it enjoys an attracting environment, a promising market, and a governmental support. He added that Iraq needs more support from Arab countries, so the Arab Trade Chambers Union is happy to participate economic partnerships with Iraq in serving the Iraqi people who are the actual wealth in Iraq.

Representing the World Bank, Yara Salim confirmed the Bank commitment to support Iraq in its reconstruction campaign which is part of the international obligation towards Iraq in the Kuwait conference, she is already involved in several projects working on achieving this goal side by side with the National Investment Commission by PIC capacity building and developing investment attracting legislations to create an integrated investment environment. She added that the World Bank is currently working with the Central Bank of Iraq to fund and develop the vital sectors and invest in the human resources.

In his speech, Mr. Hatem Al Qawasmi, the executive partner and founder of KPMG determined three aspects for Iraq’s future: the first is the Iraqi economic features, the second is including the main investment opportunities while the third is a presentation of what his institution can offer Iraq.

He explained some of the strategic features of developing the Iraqi private sector for the next ten years due to its ability to develop the local economy and compete with counterparts in the region by developing the organizational structures for the state owned companies to cope with the new economic reality.

The first opening session included the Executive Chairman of Economy and Business Group Mr. R. Abo Zaki’s speech where he mentioned that Iraq is on the cross line at the present time, leaving behind years of war and destruction, looking forward a prosperous future and needs a long term economic plan that enhances investment in the private sector to work effectively with the international economy.

Six investment licenses were granted during the form, four of them were granted to DICO International Holding LTD (British) to develop the three main central malls in Baghdad while the forth was for Al Muftiya project in Basra Province (housing, recreational, commercial). The fifth and sixth licenses were granted to Al Ghaith Co. (UAE) to establish the Sodium hydroxide plant and food salt factory in Muthana Province.

The National Investment Commission singed three memoranda of understanding with investor Jawad Abo Khamees (Kuwaiti) to build hotels, service and commercials centers in Baghdad, Karbala and Saladin Provinces. A forth memoranda was singed with Qeewan Group and Jawad Al Qasab to build five stars hotel and a mall in Baghdad, while the fifth one was singed with Al Arabiya for Airports and 21st Century for Satellites Co.s.

The sixth and seventh memoranda were signed with Majd Al Ardh to build the economic zone in Baghdad and Dr. Rafii Ibrahim Al Rawi to develop Al Andalus Oncology Hospital in Baghdad.

The first session under the title (Partnership in Investment) attended by Mr .Ali Al Alaq, the Governor of the Central Bank of Iraq, Mr. Wadee Al Handhal, Chairman of the Private Iraqi Banks, Mr. Ahmed Al Qadhi from EY and Mohamed Al Mutawaa from Al Baraka Group where all discussed funding the infrastructure projects, foreign and Arab investment experiences in Iraq and partnership potentials with Arab and foreign countries.

The second session included the General Secretary of the Council of Minsters Dr. Mehdi Al Alaq speech regarding the procedures aiming at improving the investment environment in Iraq. Dr. Sami R. Al Araji presented the most important investment opportunities. Also there were two other speeches for Mr. Ahmed Al Wakeel and Saib Nahhas.

Round tables sessions started later in two parts, the first part was between the governmental agencies and the private sector (Iraqi and foreign) while the second part was among the governmental agencies, private sector and international agencies.

30 companies from public and private sector were represented in an exhibition along with the forum showing available opportunities in both sectors.

A number of ministers (Oil, Planning, Reconstruction and Housing, Trade, Central Bank of Iraq) attended the event in addition to a high level diplomatic representation for 30 Arab and foreign countries including ambassadors, vice ministers, director generals, economic organizations and representatives of the Iraqi private sector.

(Source: NIC)

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IBBC Spring Conference a Huge Success

The Iraq Britain Business Council (IBBC) held its annual Spring Conference at the Mansion House in London and a newly formatted second day forum for Iraqi and UK SMEs to discuss business opportunities at the Royal Overseas League on the 24th and 25th of April.

The event proved to be a huge success, with record attendances and expert speaker contribution fully captivating the positive and progressive forecast for Iraq in 2018. The Conference was chaired by Rasmi Al Jabri, Deputy Chairman and Iraq representative of IBBC, who’s significant standing in Iraq was fundamental to the success of the event.

The first day of the conference, entitled ‘Iraq: Building a diversified and modern economy’ was held at the Mansion House, home of the Lord Mayor of London and featured numerous Iraqi and UK politicians, industry experts, academics, government advisers and more. The day featured the newly incorporated roundtable discussions, which facilitated greater face time with industry experts and politicians and more in-depth discussions.

The main panel sessions focused on a wide range of sectors and industries to fully address the investment opportunities, need for diversification of the economy and progress of Iraq over the last year:

SESSION 1: Finance ‘Major projects – the criteria for and process of obtaining finance for projects in Iraq’

SESSION 2: Technology ‘Developing Iraq’s digital economy’

SESSION 3: Energy and Industry ‘The need for locally available products and services – how two sectors can help diversify Iraq’s Economy’

SESSION 4: Education and Training ‘Developing human capital in Iraq’

A high-level delegation from the Government of Iraq was present, including H.E. Mohammed Shyaa Al-Sudani, Minister of Social Affairs & Acting Minister of Industry and Minerals, Mr Khadhem Al Hassani, Economic Advisor to the Prime Minister of Iraq and H.E. Dr Salih Husain Ali Al Tamimi, the Iraqi Ambassador to the UK, who were all invited to give opening addresses to IBBC Members and guests at the conference.

H.E. Dr Abdul Kariem Al Faisal, Chairman of the PM’s Advisory Commission and Mr Abbas Nasser, Legal Advisor to the Ministry of Transport and H.E. Nawzad Hadi, Governor of Erbil also attended the first day of the conference and held RoundTable discussions with IBBC Member representatives.

Several UK Government officials participated, including Baroness Nicholson of Winterbourne, The Prime Minister’s Trade Envoy to Iraq, Azerbaijan, Kazakhstan and Turkmenistan and IBBC President, Jonathan Wilks CMG, Her Majesty’s Ambassador to the Republic of Iraq and Baroness Fairhead CBE, Minister of State for Trade and Export Promotion, Department for International Trade, which demonstrates the continuing trend of increased bilateral trade and relations over the last few years between the UK & Iraq.

(Source: IBBC)

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Positive Indicators at IBBC Conference

At a major Iraqi business event in London on Tuesday, there was a strong sense that Iraq’s perceived risk profile is improving, and that this is an excellent time to do business in the country.

Nearly 300 delegates attended the Iraq Britain Business Council (IBBC)‘s Spring Conference at the Mansion House, which focused on “building a diversified and modern economy“, with many of those flying in from Iraq specially for the occasion.

This record attendance was just one of the positive indicators in evidence at the event, with speakers pointing to improved security, better relations between the Kurdistan Regional Government (KRG) and the central government in Baghdad, and a growing trend towards up-skilling and capacity building in the local population; here at Iraq Business News, we’ve seen a positive indicator of our own, with a 15 percent increase in our website traffic over the past year.

Closing the conference’s first day, IBBC Managing Director Christophe Michels also drew attention to the growing number of companies joining his organisation, and a much more relaxed atmosphere in Iraq’s major cities.

The second day of the conference also saw a full house at the Royal Overseas League to discuss business opportunities for Iraqi and British small- and medium-sized enterprises (SMEs).

(Picture: Baroness Fairhead CBE, UK Minister of State for Trade and Export Promotion, addressing the conference.)

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Iraq: Building a Diversified and Modern Economy

IBBC Spring Conference 2018

Iraq: Building a diversified and modern economy 

Tuesday 24 April at Mansion House, London

IBBC’s Spring Conference returns on 24 April 2018, bringing to the heart of London the preeminent political and business figures involved in business and the economy of Iraq.

The theme for this years’ conference is Iraq: Building a diversified and modern economy. The conference aims to address the key challenges in building a diversified and modern economy, which will enable Iraq to build on the recent economic and social stability to progress into one of the Middle East’s major economies once again. Sessions will focus on Finance, Technology, Oil & Gas and Education.

The Government of Iraq has confirmed it is sending a high-level delegation of government representatives to the IBBC Spring Conference, which will be led by H.E. Dr Abdul Kariem Al Faisal, Chairman of the Iraq Prime Minister’s Advisory Commission (PMAC). The delegation will also include senior representatives from the Iraq Ministries of Oil and Industry.

The IBBC Spring Conference, held at the prestigious Mansion House, the home and office of the Lord Mayor of London, is traditionally IBBC’s flagship event, which attracts suppliers, investors, producers and buyers from Iraq, the UK and the wider international business community.

Prominent speakers include Baroness Nicholson of Winterbourne, President of IBBC and the Prime Minister’s Trade Envoy to Iraq, Azerbaijan, Turkmenistan and Kazakhstan, Alderman Sir Alan Yarrow, Lord Mayor, Locum Tenens, Ambassador Jonathon Wilks, Her Majesty’s Ambassador to the Republic of Iraq and Baroness Fairhead CBE, Minister of State for Trade and Export Promotion, Department for International Trade.

IBBC expects a high attendance at the conference and the new round tables are designed for close business interaction and the facilitation of in-depth discussion, where delegates can focus on particular sectors of interest and engage with speakers and industry experts on the issues that really matter.

With representatives from all major interested parties involved in Iraq expected to attend, as well as pre- and post- networking events, the IBBC Spring Conference 2018 will provide many opportunities for networking at the highest level, as well as providing exceptionally informative and experienced panels.

Sessions on the agenda include:

Finance: ‘Criteria and process for obtaining major project finance’ Chair: Mr Gavin Wishart, IBBC

IBBC has gathered several preeminent voices in the finance industry to discuss the challenges and opportunities Iraqi and international firms face in sourcing capital for major projects. Representatives from some of the largest international finance organisations, JP Morgan and Allan & Overy LLP, as well as representatives from UK Export Finance and GE will discuss in detail the criteria and process of obtaining finance for major projects in Iraq.

  • Mr Richard S. Wilkins, Executive Director – Export Finance, JP Morgan
  • Mr Tom Longmuir, Counsel, Allen & Overy LLP
  • Mr Guto Davies, Managing Director – Global ECA CoE Leader, GE Capital
  • Mr David Craig, Deputy Head of Civil Infrastructure and Energy Business, UK Export Finance

 

Technology: ‘Developing Iraq’s digital economy’ Chair: Mr Ashley Goodall, IBBC

The IBBC Tech Panel brings together the two leaders of the UK and Iraq e-government initiatives in addition to experts in FinTech and entrepreneurial hub development. The panel will address in detail how innovative new technology and the use of information and communication technologies (ICTs) can improve the activities in the public and private sectors to help Iraq’s economy and growth.

  • Mr Ahmed Elkady, Partner, Ernst & Young
  • Mr Ali Al Dahwi, Consultant, Management Partners
  • Mr Chris Fergusson, Director at The Cabinet Office (Government Digital Service)
  • Mr Mohammed Khudairi, Managing Partner, Khudairi Group

 

Oil & Gas: ‘Need for locally available products and services – how the sector can help diversification of Iraq’s economy’ Chair: Mr Vikas Handa, IBBC

This expert panel consists of representatives from the largest IOC’s in Iraq, Governmental representatives from the Iraq Ministries of Oil and Industry and an Oil & Gas expert from the Department of International Trade. The session will cover all key aspects of Iraq’s Oil & Gas sector for 2018, delivered by the preeminent experts in the field and will include a panel discussion and Q & A chaired by Vikas Handa, the head of IBBC’s Oil & Gas Sector Table and its GCC representative.

  • Dr Mark Wharton, Development Manager, Shell Iraq
  • Mr Mike Wenham, Commercial Manager, BP Iraq
  • Mr Bob Dastmalchi, Vice President, Business Development, Chevron
  • Mr Craig Jones, Deputy Director, Oil & Gas, Department for International Trade
  • Representative from the Ministry of Oil, Government of Iraq
  • Representative from the Ministry of Industry, Government of Iraq

 

Education and Training: ‘Developing human capital in Iraq’

The panel brings together leading representatives from academia and business to address the challenges of developing Iraq’s human capital to support its transition into a diversified, vibrant economy. Members of the panel have direct experience of challenges and advantages of delivering advanced education and training in-country.

Chair & Presentation: Professor Paul Boyle, President & Vice Chancellor, Leicester University

  • Mr Alex Haynes, Senior VP Business Development AMEA & Southern Europe, Wood
  • Mr Saadi Faraj Muthanna, Business Development Manager, Al Nukhba-OFS FZCO
  • Ms Christine van den Toorn, Institute of Regional and International Studies, American University of Iraq
  • Mr Will Follett, Director, Restrata

With a dedicated and well informed agenda, IBBC are bringing the experts and practitioners best placed to answer these questions, so the international business community can work towards framing the future and contributing to a modern and outward looking Iraq. Each session will emphasise the growing business opportunities for international companies.

For more information and tickets, please visit: http://www.webuildiraq.org/ibbc-conference/spring-conference-2018/ or email london@webuildiraq.org.

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IBBC joins British Chambers of Commerce in boost to UK-Iraq Trade

Iraq Britain Business Council joins British Chambers of Commerce in boost to UK – Iraq Trade

IBBC is delighted to announce that we are officially an international affiliate to the British Chambers of Commerce (BCC). The IBBC is now the official organisation to whom British companies and organisations will be referred by the BCC.

This relationship neatly mirrors our status with the Iraqi Federation of Chambers of Commerce and the Kurdish Federation of Chambers of Commerce and Industry who are close partners of IBBC. Indeed the 5 largest Iraqi chambers, namely Baghdad, Erbil, Basrah, Najaf and Karbala are full members of the IBBC.

The BCC sits at the heart of a business network that spans the length and breadth of the UK, with links to markets across the world, with 52 accredited Chambers in the UK as trusted champions of businesses, places, and global trade.

Chambers of Commerce provide a voice to the business communities they represent, amplifying their priorities and concerns. In every region and nation of the UK, Chambers of Commerce and their members work to improve the local business environment in which they operate.

The Chamber of Commerce network exists to support and connect companies, bringing together firms to build new relationships, share best practice and foster new opportunities.

Christophe Michels, MD of IBBC says:

“IBBC is delighted to have been granted this affiliate status by BCC, as this endorses our role as intermediaries and trade enablers with Iraq for all the work we do with British business in the country. It completes the circle of business with Iraqi companies, as we have an equal position in Iraq, and are thus able to bring businesses in both UK and Iraq together through this unique leverage.”

Dr Adam Marshall, Director General at BCC stated:

“We are delighted to welcome IBBC to the BCC and we look forward together to strengthening relations and business opportunities between the UK and Iraq in the weeks and months ahead.”

(Source: IBBC)

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Saudi Arabia looks to Expand its Footprint in Iraq

By Ali Mamouri for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Following Iraqi Prime Minister Haider al-Abadi’s two visits to Saudi Arabia last year, Saudi Crown Prince Mohammed bin Salman is set to visit Iraq soon, according to Iraqi parliamentarian Saadoun al-Dulaimi.

Although neither Riyadh nor Baghdad have officially announced the visit, Dulaimi said in a March 12 tweet that Prince Mohammed will spend two days in Iraq, first meeting with Abadi in Baghdad to “sign agreements,” followed by a visit to Najaf to meet religious leaders.

Saudi Arabia was scheduled to reopen its consulate in the oil-rich city of Basra, which is adjacent to Iran, in March, but this was delayed for administrative reasons. Some reports say that Mohammed may open the consulates in Basra and Najaf, the Shiite religious center that is home to top Shiite clerics, during his upcoming visit to Iraq.

Meanwhile, the Saudi Embassy in Iraq is in the process of setting up the consulate office at the Sheraton Hotel in Basra. The consulate was closed in 1990 in the wake of the Gulf crisis that erupted during the regime of Saddam Hussein, and remained closed as a result of tensions in Saudi-Iraqi relations.

The Saudi kingdom opened a consulate in Erbil, the capital of the semi-autonomous Kurdistan Region of Iraq, in early 2016.

The decisions to expand Saudi Arabia’s diplomatic representation in Iraq come as part of a broader framework to strengthen the official political relations between the two governments. Saudi Arabia is seeking to establish economic and social bridges between the two countries in various fields.

Abdul Rahman al-Shahri, head of the Saudi delegation responsible for the establishment of the consulate in Basra, said that these measures are carried out to “provide services and incentives to both religious pilgrims and economic delegations between the two countries.”

Abdul Aziz al-Shammari, Saudi ambassador to Iraq, said in a statement in January, “Saudi Arabia is mostly interested in developing relations between the two countries in all areas that serve their aspirations.”

In late February, a friendly soccer game was held between Saudi Arabia and Iraq in the city of Basra, the first between the two countries in three decades. The game was attended by Saudi delegations and a large crowd of Iraqi fans.

The media office of Abadi said in a statement March 5 that the prime minister had received a phone call from Saudi King Salman bin Abdulaziz Al Saud, in which the latter pledged to build a soccer stadium in Baghdad for 100,000 spectators. It was later announced that Saudi Arabia would increase the number of seats to 135,000.

The statement said that “King Salman expressed his readiness and commitment to expand the positive relations between Iraq and Saudi Arabia at the economic, commercial, popular and cultural levels, as well as all levels of interest to both countries.”

Saudi companies, most recently the Saudi Basic Industries Corporation, one of the world’s leading petrochemicals companies, have been opening offices in Baghdad and Basra to expand economic exchange between the two countries.

Saudi Arabia is focusing its attention on Basra because it is the richest city in Iraq with the country’s largest oil fields and gateway to the Persian Gulf. It is also the most populous city after Baghdad, is adjacent to the Iranian border and home to an overwhelming majority of Shiites who share the same tribal and ethnic origins with Saudi tribes. In addition, many Saudi and Basra families are linked through marriage.

Saudi Arabia is also receiving Shiite figures who are viewed as independent of Iran. These include Sadrist movement leader Muqtada al-Sadr, who visited Saudi Arabia last year and met with King Salman and Prince Mohammed. He was warmly received amid much fanfare.

Saudi news sites, most notably Al-Arabiya, are refraining from criticizing supreme Shiite cleric Ali al-Sistani, because his views are independent from those of Tehran and has broad influence among Iraqi Shiites.

All this has been a matter of concern for Iran, which has allegedly mobilized parties to raise banners in Basra condemning the opening of the Saudi Consulate and the various economic and sporting activities.

The State of Law Coalition led by former Prime Minister Nouri al-Maliki, who is close to Iran, opposes Saudi Arabia’s opening of a consulate in Najaf.

Iraq is seemingly determined to pursue rapprochement and cooperation with Saudi Arabia, and is organizing regular visits by political, economic and media delegations. These included Abadi’s visit to Saudi Arabia last October, during which the memorandum of establishment of the Saudi-Iraqi Coordination Council was signed to develop relations between the two countries.

Interior Minister Qasim al-Araji also visited Saudi Arabia last year, and Abadi insisted on receiving Saudi delegations even if they were not high level. In February, for instance, he received the Saudi media delegation that visited Iraq at the invitation of the Iraqi Journalists Union.

In October, Saudi Arabia resumed its flights to Iraq after 27 years, and it opened in October 2017 its border crossing in southern Iraq to expand economic travel and increase tourist and religious travel between the two sides.

The first initiatives to expand relations between the two countries were directly sponsored by the United States with Secretary of State Rex Tillerson attending the meeting of the establishment of the Saudi-Iraqi Coordination Council in Riyadh in October.

The Iraqi-Saudi rapprochement appears to take place in the context of the new US policy that followed the support garnered by President Donald Trump from the US allies in the region to form a united front to counter Iran’s rise in the Middle East.

Saudi Arabia has seemingly made great progress in achieving rapprochement with Iraq and expanding its areas of influence within the last year. Such rapprochement is likely to get stronger should Abadi manage to keep his seat for another term in the elections scheduled for May.