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FRIDAY TICKER: OCTOBER 31TH 2014: - The re-election of President Dilma Rousseff on Sunday has important implications for Brazil's Baa2 sovereign rating, as well as for the credit quality of the country's banks, corporations and securitisations, says Moody's. The rating agency says the narrow margin of her victory underscores the challenges she faces as she looks to revive Brazil's lacklustre economic performance - Facebook has reported third quarter results, again showing strongest year-on-year growth in mobile, where daily active users (DAUS) rose by 39% to 703 million, while overall daily users rose 19% to 864 million DAUS - Francisco Partners, a global technology-focused private equity firm, today announced it has completed the acquisition of Vendavo, Inc., a leader in business-to-business (B2B) pricing solutions. David Mitchell, an operating partner of Francisco Partners, will join Vendavo as CEO and lead the company’s worldwide business strategy and operations. Incumbent CEO Neil Lustig will transition into an advisory role with Vendavo. Francisco Partners now has a controlling stake in the Silicon Valley company. The acquisition by Francisco Partners provides additional resources to bolster Vendavo’s aggressive growth strategy, enabling the company to expand sales and marketing while accelerating cloud development. Vendavo completed a record first half of 2014, with nearly 30-percent growth in bookings, and the release of two breakthrough solutions for price and sales effectiveness. Based in Mountain View, Calif., Vendavo provides revenue and price optimisation solutions for B2B mid-market and enterprise companies.Francisco Partners was advised by JMP Securities, and Vendavo was advised by William Blair. Financial terms of the transaction were not disclosed – The International Finance Corporation, or IFC, issued the four-year, triple-A rated bond only to Japanese retail investors, tapping into the growing interest in low-risk investments with a social or environmental focus. The World Bank, has sold several billion dollars in green bonds over the past six years, with proceeds going to help countries and firms cut greenhouse gas emissions and adapt to climate change. The latest offering, Inclusive Business bonds, would finance firms that work with or sell to the 4.5bn people in the world that make less than $8 a day. IFC said while most poor people do not spend a lot individually, as a whole they represent an estimated $5trn consumer market that firms could tap into - NAKA Mobile, a telecoms and technology specialist based in Switzerland, has claimed the industry’s first virtualised evolved packet core (vEPC). Utilising Cisco’s NFV services, NAKA claims it will transform its network architecture, expand beyond Switzerland, and provide its mobile Internet services to customers across the world - The Internet Society and Alcatel-Lucent have agreed to provide support and equipment for the development of the Bangkok Internet Exchange Point (BKNIX). The project will utilise the Internet Society’s Interconnection and Traffic Exchange (ITE) programme and is intended to deliver a stronger and more robust Internet infrastructure for South East Asia.

Fortunes divide in infrastructure spending in the GCC

Monday, 03 October 2011
Fortunes divide in infrastructure spending in the GCC The growing disparity of fortunes in the GCC project segment was starkly exposed by a Citigroup report, which highlighted the fact that while some $170bn of projects in the United Arab Emirates have been put on hold or cancelled outright, the MENA region has seen a substantial uptick in infrastructure project spend. Who are the winners and runners up in the GCC project stakes right now? http://www.ftseglobalmarkets.com/

The growing disparity of fortunes in the GCC project segment was starkly exposed by a Citigroup report, which highlighted the fact that while some $170bn of projects in the United Arab Emirates have been put on hold or cancelled outright, the MENA region has seen a substantial uptick in infrastructure project spend. Who are the winners and runners up in the GCC project stakes right now?

Citigroup’s latest MENA construction tracker report holds that the value of projects either delayed or cancelled rose to $170bn in August alone; a signal indication that the construction segment, particularly related to real estate in the Emirates, is still suffering from the fallout of local construction firms overstretching their credit exposure in the early years of this century. The figure is significant; the value of projects cancelled or delayed accounts for 56% of the all stymied projects across the survey area and is up 13% on July’s figures.  The property boom in the Emirates has now been languishing for over 3 years, with some prices of private property estimated to have fallen by as much as 60% in Dubai. No wonder many developers have been forced to abandon projects.

Projects cancelled or on hold across the wider MENA region in contrast, fell slightly to $1.69bn, compared with $1.7bn in July.  However, key markets in the GCC continue on the fast track in terms of new project spend. Saudi Arabia added $81bn worth of projects to the already $100bn it intends to spend on infrastructure in general and $20bn it will spend on downstream petrochemical projects over the coming five years.  Saudi Arabia, the UAE, also Jordan and Egypt are reportedly now pushing forward the idea of building nuclear power capacity across the MENA region; with the estimated value of projects topping $400bn over the next 15 years.  Saudi Arabia will again dominate this segment, with a planned $350bn spend on the King Abdullah City of Atomic and Renewable Energy project, which aims to establish a zeroCo2 emissions city using a mix of nuclear and other renewal energy sources.  Around 16 separate nuclear units are planned.



Kuwait ($20bn) and Qatar ($2bn) also have projects that are in preliminary stages of construction. In contrast, the UAE also showed a $12bn decline in preliminary projects to $118bn.

It is a contrasting picture with the situation even two years ago. While the outlook for countries such as Saudi Arabia look strong in the near term, revised data issued by the Saudi Arabian Monetary Authority shows that the build up to the current construction pipeline was rather slow in 2009 and the first half of 2010. There was an uptick in growth in 2010, with the industry posting 3.7% year-on-year real construction industry growth, while an average growth in construction projects of some 4% a year over the next four years is expected, backed by a healthy project pipeline, strong government support, an ability to invest and local demand for infrastructure keeps the industry stable.

The country’s Ninth Development Plan announced a touch over a year ago sets out an investment spend on infrastructure of some SAR1, 444bn ($385bn) between 2010 and 2014. Then, in response to stirrings elsewhere in MENA, now called the Arab Spring, the government created two packages of social benefits worth $130bn to finance further investment in education, healthcare and housing projects. SAR250bn ($66bn) was pledged for housing alone, with 500,000 new units in the pipeline. Around 7% of development plan investment will be channelled into housing, encompassing some 1m new houses to be built on a public-private partnership basis.  Another 19% will be invested in healthcare, involving the build of some 117 hospitals and 750 so-called primary care units.  The government also has an $80bn 10-year investment plan for electricity infrastructure underway in parallel with the infrastructure investment plans, which run out to 2018. Some 20GW of electricity capacity is currently under construction, worth around $30bn.

In a boost to local construction firms, the Saudi Industrial Development Fund has announced it will finance up to 75% of costs for investment projects in under-developed regions.

The current crop of investments underway includes the SAR40bn expansion of the Grand Mosque, underscoring the Kingdom’s pivotal role in Islam. The expansion, in the northern part of the Grand Mosque will cover an estimated 356,000 square metres, ultimately accommodating up to 1.2m worshippers.  It includes the construction of four giant bridges allowing access to the northern courtyards inside the Grand Mosque. It is the largest expansion project within the Grand Mosque complex to date and will showcase the country’s move into the 21st century, while retaining its sacred role as protector of the Islamic faith.

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