Latest news with #LondonStockExchange
Arabian Post
a day ago
- Business
- Arabian Post
Aramco Eyes Islamic Debt Market Amid Fiscal Pressures
Saudi Aramco has filed a new prospectus for an Islamic bond issuance programme, indicating a potential return to the debt markets following a $5 billion conventional bond sale earlier this week. The prospectus, dated 30 May, was submitted to the London Stock Exchange, where the sukuk would be listed. Under its terms, Aramco has a year to issue the Islamic bonds. This move comes as the company navigates economic uncertainties and increased oil supply, which have impacted crude markets and reduced the oil exporter's profits. In March, Aramco announced plans to reduce its dividend by nearly a third due to declining profits and free cash flow. The Saudi government relies heavily on revenue from Aramco, including dividends, royalties, and taxes. Last year, oil accounted for 62% of state revenue. The International Monetary Fund estimates that Saudi Arabia requires oil prices above $90 per barrel to balance its budget, while Brent crude is currently trading around $64.40.
The Herald Scotland
a day ago
- Business
- The Herald Scotland
Uncertainty for savers as Rachel Reeves eyes ISA changes
Recent months have seen intense debate about potential ISA reforms, particularly following Reeves' Spring Statement in March, where she expressed a desire to 'get the balance right between cash and equities to earn better returns for savers, boost the culture of retail investment, and support the growth mission'. The prospect of slashing the cash ISA allowance from £20,000 to as low as £4,000 has sparked alarm, with fears it could penalise cautious savers. On 20 May, the Chancellor confirmed to the BBC that the overall £20,000 ISA allowance would remain intact. Yet, her silence on the specific cash ISA limit within the overall allowance has kept speculation alive, with a potential cut remaining on the table as part of a broader review expected to be launched in July's Mansion House speech. The rationale behind potential reforms is partly rooted in a desire to channel more capital into UK markets. Reeves has been vocal about revitalising the London Stock Exchange, noting that 'hundreds of billions of pounds in cash ISAs' are not being invested productively. This echoes the recent Mansion House Accord, an agreement with the UK's largest workplace pension scheme providers to allocate at least 5% of their default funds to UK private market assets by 2030, which could be followed by further measures aimed at supporting UK public markets too. By potentially nudging cash savers towards stocks and shares ISAs, the government may also hope to address the UK stock market's challenges, including a decline in initial public offerings (IPOs), companies relocating listings overseas where they can command higher valuations and private equity buyouts, factors which have led to a 20% decline in the number of UK listed companies over the last five years. One proposed reform, floated by investment bank Peel Hunt, involves simplifying the ISA system by merging cash and stocks and shares ISAs into a single product and abolishing lifetime ISAs and innovative finance ISAs. Peel Hunt argues that with ISA tax reliefs costing the Treasury an estimated £9.4 billion annually, redirecting these incentives towards UK-focused investments could deliver better value for taxpayers. While such a move would align with Reeves' growth agenda, it would severely limit investor flexibility. From a public policy perspective and for the brokers and fund managers who make a living off the UK markets, the case for refocusing ISAs on UK assets may seem compelling. The UK stock market has struggled as pension funds have dramatically reduced their UK equity holdings since the late 1990s, and retail investors have increasingly favoured US equities. However, from the perspective of ISA investors, such restrictions would be a step backward to the old days of personal equity plans, which had such limitations on overseas investments before they were replaced by ISAs. Limiting stocks and shares ISAs to UK assets – or requiring a minimum level of UK exposure - would reduce the scope for diversification, a cornerstone of sensible investing. Historically, overseas markets —notably US equities — have often outperformed UK equities over long periods. Forcing investors to prioritise UK stocks could undermine the very returns Reeves seeks to enhance. A potential beneficiary of a UK-focused ISA regime could be the investment trust sector, which has faced headwinds recently with trusts trading at wide discounts, limited new share issuance and the arrival of activists on the scene. UK-listed investment trusts that invest globally, many of which are managed in Edinburgh, might attract fresh demand if investors are required to allocate a portion of their ISA to UK-listed assets. Such trusts could offer a workaround, allowing exposure to international markets while supporting the UK financial services sector, a significant tax revenue generator and employer in both London and Edinburgh. An alternative to mandating UK investment in ISAs could be through incentives or the removal of impediments, such as scrapping stamp duty on UK share purchases within ISAs, which undermines the 'tax-free' promise and is a disadvantage over buying US shares where no such transaction tax exists. An even bolder idea would be a modest income tax credit or top-up 'bonus' for stocks and shares ISA subscriptions, subject to a minimum holding period to prevent short-term trading. This could incentivise equity investment while preserving saver choice. As we await the launch of the consultation and its outcome, likely to be detailed in the Autumn Budget, savers and investors would be wise to make use of the current allowances while they can, especially given the high tax burden. The £20,000 ISA allowance is safe for now, but changes to cash ISAs or restrictions on stocks and shares ISAs could reshape how we save and invest in the future. The Chancellor's desire to boost UK investment is laudable, but it must not come at the expense of savers' flexibility or financial security. Jason Hollands is a managing director at wealth management firm Evelyn Partners which has offices in Glasgow, Edinburgh, and Aberdeen
The Herald Scotland
2 days ago
- Business
- The Herald Scotland
Iomart chief executive Lucy Dimes in sudden departure
Chairman Richard Last is taking over as executive chair with immediate effect while the board makes arrangements to appoint a new chief executive. He will be supported by chief financial officer Scott Cunningham, Atech chief executive Ryan Langley and Angus MacSween, the founder and a non-executive director of Iomart. Lucy Dimes (Image: Iomart) In a brief statement to the London Stock Exchange the company said its board of directors "would like to thank Lucy for all her work in helping to reposition Iomart's business to more fully address the opportunities in the public and private cloud and security markets". In February Iomart warned that users of its higher-margin private managed services are being replaced at a faster rate than expected by lower-margin cloud and security business. Ms Dimes had prioritised cloud and security business because although this market is less profitable, it offers bigger growth potential. Iomart said at that time that the acceleration in its customer churn rate would result in profits for the year to March 31 coming in roughly 10% below previous market expectations. In a subsequent trading update on April 23 the company said it anticipates full-year revenue growth of 13% to approximately £143m, including contributions from acquisitions. Read more: Iomart stated today that there has been "no material change to trading" since that time. The company is due to report its full-year results in late June. Ms Dimes joined Iomart as non-executive chair in August 2022, having previously worked in senior executive positions in both listed and private equity-owned companies spanning the telecoms, technology, business services and financial services sectors. She transitioned to executive chair on a part-time basis in July 2023 and took sole leadership in September of that year following the abrupt departure of previous chief executive Reece Donovan, who had been in the post since September 2020. Shares in AIM-listed Iomart were trading more than 5% lower today as of late afternoon.
Business Times
2 days ago
- Business
- Business Times
Saudi Aramco could tap debt markets again after US$5 billion bond sale
[DUBAI] Saudi Aramco has published a new prospectus for its issuance programme of Islamic bonds or sukuk, signalling the state oil major may soon tap the debt markets again after it raised US$5 billion from a three-part bond sale this week. The prospectus, submitted to the London Stock Exchange where the sukuk would be listed, is dated May 30. Aramco has a year to issue sukuk under its terms. Aramco earlier this week raised US$5 billion from a sale of conventional bonds. The borrowing comes after economic uncertainty and rising supply hit crude markets, denting the top oil exporter's profits. 'Aramco is likely looking to take advantage of a window of relative market calm to issue debt again,' said Zeina Rizk, co-head of fixed income at Amwal Capital Partners. Aramco in March said it expected to slash its dividend this year by nearly a third as profits and free cash flow decline. Reuters reported last week that Aramco is exploring potential asset sales to free up funds as it pursues international expansion and weathers lower crude prices. The Saudi government is heavily reliant on generous payouts from Aramco, its longtime cash cow, also including royalties and taxes. Oil receipts made up 62 per cent of state revenue last year. The government does not disclose at which crude price its books are balanced. The IMF estimates it needs oil at over US$90 a barrel for a balanced budget. Brent Crude was trading around US$64.4 on Friday. REUTERS
Business Recorder
2 days ago
- Business
- Business Recorder
Saudi Aramco could soon issue Islamic bonds, prospectus shows
DUBAI: Saudi Aramco has published a new prospectus for its issuance programme of Islamic bonds or sukuk, signalling the state oil major may soon tap the debt markets again after it raised $5 billion from a three-part bond sale this week. The prospectus, submitted to the London Stock Exchange where the sukuk would be listed, is dated May 30. Aramco has a year to issue sukuk under its terms. Aramco earlier this week raised $5 billion from a sale of conventional bonds. The borrowing comes after economic uncertainty and rising supply hit crude markets, denting the top oil exporter's profits. Saudi Aramco seeks funds through three-part bond sale Aramco in March said it expected to slash its dividend this year by nearly a third as profits and free cash flow decline. The Saudi government is heavily reliant on generous payouts from its longtime cash cow Aramco, which also include royalties and taxes. Oil receipts made up 62% of state revenue last year. The government does not disclose at which crude price its books are balanced. The IMF estimates it needs oil at over $90 a barrel for a balanced budget. Brent crude was trading around $64.4 on Friday.
