Abu Dhabi's Aabar Investments has purchased ?49.8 million (Dh230.3m) of convertible bonds in UniCredit, the Italian lender, as European banks seek capital to cope with the financial crisis. The move comes as the financial meltdown in many banks in central and eastern Europe is creating opportunities for Gulf investors, say analysts. UniCredit is the biggest lender in central and eastern Europe and its shares have fallen to 12-year lows partly due to investor concerns about its exposure to the region's problems. The bank gets about a quarter of its revenues from eastern and central Europe, and a spokesman said yesterday it had no concerns about its operations in the region. "With excess liquidity, now is a good time for those with cash to buy whatever they want cheaply, which may include opportunities [in eastern Europe]," said Yazan Abdeen, a fund manager at ING Investment Management. Last week, three international lenders including the World Bank, the European Bank for Reconstruction and Development, and the European Investment Bank announced loans of up to ?24.5bn for eastern European banks. However, measures by the EU to shore up banks in the area are insufficient, say industry officials. "We are probably going to see more difficulties coming along the road in Poland, Hungary and the Czech Republic perhaps," said Fredrik Erixon, the director of the European Centre for International Political Economy in Brussels, according to Bloomberg. "The scope and magnitude is going to be so big that current instruments aren't going to suffice." This presents an opportunity for Gulf investors with available cash, say analysts. "This is a good time to hunt for bargains and those with cash have the upper hand," said Eric Swats, a partner at Rasmala Investments. The convertible bond, exchangeable into ordinary shares of Italy's second-largest bank by market value, would pay a quarterly coupon equal to the three-month euro interbank rate plus 4.5 per cent interest per year, Aabar said in a statement posted on its website. Aabar is controlled by the International Petroleum Investment Company (IPIC). The government-focused sovereign wealth fund owns a 36 per cent stake in Aabar and has the option to swap bonds for shares to take majority ownership. Last month, IPIC launched a US$500m (Dh1.83 billion) takeover bid for Canada's Nova Chemicals. Analysts are viewing the move by Aabar to invest in UniCredit as part of an overall scheme to diversify holdings geographically and across varied sectors. "Most of these groups will be open to investments locally as well as internationally; it depends on their perceptions of where opportunities exist," said Mr Swats. Khadem al Qubaisi, the managing director at IPIC, has described Aabar as a vehicle for IPIC to diversify its portfolio away from the energy sector. Analysts concede the firm's decision to invest in banks abroad, rather than regional entities, suggests that the firm is finding good investment opportunities in areas such as eastern Europe, where capital is being sought to shore up the region's economies. "[Aabar's] concern is more about returns at the end of the day," said Mr Abdeen. Aabar stated that the securities, which mature on Dec 15 2050, carried an initial exchange price of ?3.083. Analysts are waiting for information on further terms of the bond to be made public, such as the underlying assets that back it, before analysing Aabar's strategy. "We need to know more about the terms [of the convertible bond]," said Mr Abdeen. "[Aabar] has no track record in financial mergers and acquisitions for us to benchmark their valuation process." The convertible bond issue is part of an effort by UniCredit to boost its capital by ?6.6bn. UniCredit representatives declined to comment further on capital-raising plans when contacted. Italy approved a scheme last month to bolster banks' capital through bonds in a crisis-fighting measure expected to involve up to ?12bn. Under the plan, banks would issue bonds that the government would buy and use the proceeds to shore up their capital. * with Reuters and Bloomberg shamdan@thenational.ae
Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
ICC Awards for 2021
MEN
Cricketer of the Year – Shaheen Afridi (Pakistan)
T20 Cricketer of the Year – Mohammad Rizwan (Pakistan)
ODI Cricketer of the Year – Babar Azam (Pakistan)
Test Cricketer of the Year – Joe Root (England)
WOMEN
Cricketer of the Year – Smriti Mandhana (India)
ODI Cricketer of the Year – Lizelle Lee (South Africa)
T20 Cricketer of the Year – Tammy Beaumont (England)
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
Dates for the diary
To mark Bodytree’s 10th anniversary, the coming season will be filled with celebratory activities:
- September 21 Anyone interested in becoming a certified yoga instructor can sign up for a 250-hour course in Yoga Teacher Training with Jacquelene Sadek. It begins on September 21 and will take place over the course of six weekends.
- October 18 to 21 International yoga instructor, Yogi Nora, will be visiting Bodytree and offering classes.
- October 26 to November 4 International pilates instructor Courtney Miller will be on hand at the studio, offering classes.
- November 9 Bodytree is hosting a party to celebrate turning 10, and everyone is invited. Expect a day full of free classes on the grounds of the studio.
- December 11 Yogeswari, an advanced certified Jivamukti teacher, will be visiting the studio.
- February 2, 2018 Bodytree will host its 4th annual yoga market.
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
Stree
Producer: Maddock Films, Jio Movies
Director: Amar Kaushik
Cast: Rajkummar Rao, Shraddha Kapoor, Pankaj Tripathi, Aparshakti Khurana, Abhishek Banerjee
Rating: 3.5
Why your domicile status is important
Your UK residence status is assessed using the statutory residence test. While your residence status – ie where you live - is assessed every year, your domicile status is assessed over your lifetime.
Your domicile of origin generally comes from your parents and if your parents were not married, then it is decided by your father. Your domicile is generally the country your father considered his permanent home when you were born.
UK residents who have their permanent home ("domicile") outside the UK may not have to pay UK tax on foreign income. For example, they do not pay tax on foreign income or gains if they are less than £2,000 in the tax year and do not transfer that gain to a UK bank account.
A UK-domiciled person, however, is liable for UK tax on their worldwide income and gains when they are resident in the UK.
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
UAE currency: the story behind the money in your pockets
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5