Latest news with #GCMA
Zawya
20-05-2025
- Business
- Zawya
Doha to ‘intensify' development of local currency debt: GCMA
Doha may 'intensify' the development of its local-currency debt market, which is currently going through an 'exciting' phase in view of the robust macroeconomic fundamentals and sovereign support, according to the Gulf Capital Market Association (GCMA). The local capital market regulator (Qatar Financial Markets Authority or QFMA) is committed to the sustainable sector and has increased the clarity around the issuance and listing of debt, Michael Grifferty, President, GCMA said in the Qatar Financial Centre's latest Islamic Finance report. The local currency market has begun to gain traction as it saw its first issuance by a publicly listed company in 2024, he highlighted. Estithmar Holding had last year issued a QR500mn sukuk, marking the first corporate issuance denominated in Qatari riyal, under its QR3.4bn programme. The three-year sukuk, maturing in September 2027, offers an 8.75% coupon and drew interest from government and non-government investors, including banks, insurers, asset managers and family offices. 'There is a possibility that Qatar may intensify the development of its nascent state local-currency programme,' Grifferty said. Terming Qatar's debt capital market as an 'exciting' work in progress, he said 'we have already seen an increase in the diversity of issuers and structures, many in sukuk format and increasingly for sustainable uses.' The state led in this regard by issuing a green bond in a benchmark size, and was the first regional sovereign to do so. In 2024, Qatar set a regional benchmark by issuing $2.5bn in green bonds to fund environment friendly projects, marking a new era for sustainable finance. The bonds are divided into two tranches: a $1bn tranche with a five-year maturity priced at 30 basis points spread over the US treasuries and a $1.5bn tranche with a 10-year maturity priced at 40 basis point spread over US treasuries. 'Banks have added labelled ESG (environment, social and governance) bonds and sukuk to their active issuance programmes,' Grifferty said. The Qatar Central Bank (QCB) is certainly behind this trend, having published its ESG and Sustainability Strategy for the Financial Sector in 2024, he said. 'This is having results, as almost 20% of the debt capital market is being issued for ESG purposes,' he said, quoting an international credit rating agency Fitch. Qatar's domestic markets have been buoyed by a robust economy underpinned by supportive public spending and the authorities' commitment to invest in economic transformation. 'Adding in a well-capitalised banking system and regulatory developments, the case for the Qatar market has only strengthened,' he said. Regulators for their part are laying the foundation for more active debt and equity markets with further market liberalisation, including by easing listing requirements and providing greater clarity about the path to issuance of both debt and equity instruments, according to him. Rounding out the ecosystem are the recent establishment of a ventures exchange, and the completion of a groundwork for listed derivatives to allow trading of futures and options, he said, adding 'we have also begun to see some activity in securities borrowing and lending (SBL). © Gulf Times Newspaper 2022 Provided by SyndiGate Media Inc. (
Yahoo
26-02-2025
- Business
- Yahoo
After trade dispute, Mexico officially bans the planting of GM corn
By Adriana Barrera MEXICO CITY (Reuters) - Mexico's lower house of Congress on Tuesday approved a constitutional reform to ban the planting of genetically modified (GM) corn, a move that could lead to more tension with the United States after the resolution of a trade dispute, analysts said. The initiative by President Claudia Sheinbaum comes after a trade-dispute panel ruled in December that Mexico's restrictions on GM corn, mostly imported from the United States, violate the U.S.-Mexico-Canada Agreement (USMCA). See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. As a result of the USMCA panel ruling, Mexico repealed its import restrictions on GM corn for human, livestock and industrial uses. Mexico, the birthplace of modern corn, had already prohibited the commercial planting of GM corn strains, arguing they will contaminate native strains of the grain, but Sheinbaum pledged to officially prohibit the planting of GM corn within its territory via the Constitution. With Sheinbaum's reform approved with 409 votes in favor and 69 against, native corn is branded as an "element of national identity" and GM corn is officially banned from being planted in Mexico. "Any other use of genetically modified corn must be evaluated ... to be free of threats to the biosecurity, health and biocultural heritage of Mexico and its population," the text of the reform states. The reform will now go to the Senate for final approval. Mexico buys about $5 billion of U.S. GM corn each year, mostly for livestock feed. Some analysts said the reform could spark a new controversy with the U.S. because it also refers to the use of GM corn, and not just the planting of the grain. The Agricultural Markets Consulting Group (GCMA), a major consultancy in Mexico said the government's decision to strengthen its position against GM corn generates "uncertainty" in the relationship with the United States, its primary source of yellow corn imports, which are mainly dedicated to livestock feed. "Following the adverse ruling by the USMCA dispute panel, the insistence on these restrictions is likely to trigger retaliatory measures by the US government," GCMA said in a recent report.
