ENBD has hired HSBC Holdings (HSBA.L: Quote, Profile, Research, Stock Buzz), National Bank of Abu Dhabi NBAD.AD, Citigroup Inc (C.N: Quote, Profile, Research, Stock Buzz), J.P. Morgan Chase (JPM.N: Quote, Profile, Research, Stock Buzz), Societe Generale (SOGN.PA: Quote, Profile, Research, Stock Buzz) and itself for the planned sale, two of the sources said, speaking on condition of anonymity as the matter is not public.

ENBD declined to comment.

A successful sale will help the lender, 55.6-percent owned by state fund Investment Corp of Dubai, repay part of the 12.6 billion dirhams ($3.43 billion) it received from the government in 2008. The bank said in January that it was looking to begin repayment of the funds.

The bond is not expected to be launched immediately given that two other Dubai entities – Dubai Islamic Bank DISB.DU and Emirates airline EMIRA.UL – are currently meeting investors ahead of potential issues.

Benchmark size transactions are at least $500 million.

Banks in the United Arab Emirates will aim to repay Tier 2 capital placed with them at the height of the global financial crisis this year, with some turning to the bond market to avoid servicing expensive debt.

The country’s Ministry of Finance placed 70 billion dirhams ($19.1 billion) with banks to shore up their balance sheets after the collapse of Lehman Brothers in September 2008 triggered a seizure of the world’s financial system.

The price difference between government bonds, which contribute to Tier 2 capital, and market prices for new debt is prompting many lenders to sell bonds to replace the more expensive obligations.

ENBD’s planned sale follows a similar move by Abu Dhabi Commercial Bank ADCB.AD which raised $1.5 billion from a two-tranche bond last month, with a subordinated tranche raising $750 million for the Abu Dhabi lender.

While the government bonds have a 5-percent coupon this year, rising to 5.25 percent for the final three years, ADCB’s ten-year Tier 2 note carried a 4.5 percent coupon.

ENBD sold a $50 million subordinated bond in a privately placed debt sale, IFR Markets, a unit of Thomson Reuters, reported on Wednesday.

The ten-year, non-call five deal, which followed an investor request to sole bookrunner Commerzbank (CBKG.DE: Quote, Profile, Research, Stock Buzz) for Tier 2 paper from a Middle Eastern or Asian bank, was priced roughly 75 basis points above where a standard ENBD bond would come.

Other UAE banks have chosen to use internal cash resources – at a time of limited loan growth in the country – to pay off the government cash: ADCB, First Gulf Bank FGB.AD and Union National Bank UNB.AD repaid a combined 10 billion dirhams last week.

(Editing by Dinesh Nair)

ENBD has hired HSBC Holdings, National Bank of Abu
Dhabi, Citigroup Inc, J.P. Morgan Chase,
Societe Generale and itself for the planned sale, two
of the sources said, speaking on condition of anonymity as the
matter is not public.

ENBD declined to comment.

A successful sale will help the lender, 55.6-percent owned
by state fund Investment Corp of Dubai, repay part of the 12.6
billion dirhams ($3.43 billion) it received from the government
in 2008. The bank said in January that it was looking to begin
repayment of the funds.

The bond is not expected to be launched immediately given
that two other Dubai entities – Dubai Islamic Bank and
Emirates airline – are currently meeting investors
ahead of potential issues.

Benchmark size transactions are at least $500 million.

Banks in the United Arab Emirates will aim to repay Tier 2
capital placed with them at the height of the global financial
crisis this year, with some turning to the bond market to avoid
servicing expensive debt.

The country’s Ministry of Finance placed 70 billion dirhams
($19.1 billion) with banks to shore up their balance sheets
after the collapse of Lehman Brothers in September 2008
triggered a seizure of the world’s financial system.

The price difference between government bonds, which
contribute to Tier 2 capital, and market prices for new debt is
prompting many lenders to sell bonds to replace the more
expensive obligations.

ENBD’s planned sale follows a similar move by Abu Dhabi
Commercial Bank which raised $1.5 billion from a
two-tranche bond last month, with a subordinated tranche raising
$750 million for the Abu Dhabi lender.

While the government bonds have a 5-percent coupon this
year, rising to 5.25 percent for the final three years, ADCB’s
ten-year Tier 2 note carried a 4.5 percent coupon.

ENBD sold a $50 million subordinated bond in a privately
placed debt sale, IFR Markets, a unit of Thomson Reuters,
reported on Wednesday.

The ten-year, non-call five deal, which followed an investor
request to sole bookrunner Commerzbank for Tier 2
paper from a Middle Eastern or Asian bank, was priced roughly 75
basis points above where a standard ENBD bond would come.

Other UAE banks have chosen to use internal cash resources -
at a time of limited loan growth in the country – to pay off the
government cash: ADCB, First Gulf Bank and Union
National Bank repaid a combined 10 billion dirhams last
week.

A year ago, investors – already grappling with the Arab Spring unrest that toppled regimes in North Africa – viewed the threat of a strike on Iran’s nuclear facilities and Tehran’s possible retaliation against U.S. interests in the Gulf as the number one risk in the region.

Stock markets were in turmoil and oil prices climbed above $100 a barrel, hitting peaks near $127 last March.

Some Dubai residents even talked of stockpiling water and canned goods, while others discussed the best escape routes to Saudi Arabia.

“The risk from Iran is at a lower level now that Obama is in power for another term,” said Haissam Arabi, chief executive and fund manager at Gulfmena Investments, during the Reuters Middle East Investment Summit.

Arabi said Obama’s aim to renew efforts for a diplomatic resolution to Iran’s suspected attempt to build a nuclear weapon ruled out the immediate threat of a strike.

Most Gulf stock markets, benefiting from inflows from Arab Spring countries, have rallied this year, piling on double-digit gains.

In Dubai, which has gained safe-haven status and which has also seen its battered property sector recover, the main stock index is up 18.2 percent in 2012 compared to a 17-percent decline last year. Abu Dhabi’s index is up 10 percent while Saudi Arabia has gained 3.1 percent.

Rick Pudner, chief executive of Dubai’s biggest bank Emirates NBD ENBD.DU said investors were used to dealing with upheaval, having witnessed two Gulf Wars and the Iran-Iraq war in the past 30 years.

“Obviously you’re aware of it and you have to make some decisions accordingly but, generally speaking, the United Arab Emirates benefits from adversity in the region,” he said.

Raza Agha, chief economist at VTB Capital, said when it comes to Iran-related risks: “I think there may be an element of markets getting used to the headlines, and perhaps hoping that that’s all it will be – background noise.”

Gulf Arab states, key U.S. allies who back Western sanctions against Tehran, are locked in a geopolitical struggle with Shi’ite Muslim power Iran, which sits just across the Gulf.

Sunni Gulf leaders fear Iran will exploit recent Shi’ite unrest in Bahrain and Saudi Arabia’s Eastern Province to destabilize their rule.

Despite a year in which Tehran threatened to close the world’s most important shipping line, the Strait of Hormuz, investors have largely taken the view that, given the fragile global economy, political leaders will be keen to avoid a flare-up in the world’s biggest oil-producing region.

Concerns remain about the region, given the Syrian civil war. In October, Lebanon’s intelligence chief was killed in a car bombing the country’s opposition blamed on the Syrian government while, late last month, Jordan said it had foiled an al Qaeda plot to bomb its capital.

“I am more bearish on geopolitical risk than a year ago. It surprises me people are more confident as I think the neighborhood is more dicey,” said a European banker at a Gulf-based lender, who declined to be named because of the sensitivity of the issue.

(For other news from Reuters Middle East Investment Summit, click here)

Follow Reuters Summits on Twitter @Reuters_Summits

(Additional reporting by David French, Mirna Sleiman, Nadia Saleem and Mala Pancholia; Editing by Louise Heavens)

The UAE’s largest listed natural gas firm, hit by payment delays from Egypt and Iraq’s Kurdistan region, will not repay a $920 million convertible Islamic bond, or sukuk, when it matures on Wednesday, the sources said.

However, Sharjah-based Dana has won more time to hammer out a deal with bondholders, they added.

Dana Gas declined to comment.

Although indebted firms in the Gulf Arab state have extended maturities on billions of dollars in bank loans since the onset of the financial crisis in 2008-09, no sukuk have been restructured or unpaid on maturity.

Saudi and Kuwaiti companies have defaulted on Islamic bonds in the past, leading to complex debt negotiations which have dragged on for years. Kuwait’s Investment Dar, which co-owns luxury carmaker Aston Martin, defaulted on a $100 million Islamic debt issue in 2009.

Dana has a $1 billion sukuk maturing on October 31. It repurchased about $80 million of the sukuk in 2008, leaving $920 million outstanding.

The five-year sukuk, which was issued with a 7.5 percent coupon, has gained international interest as a majority of the debt is said to be owned by large investment firms including BlackRock Inc (BLK.N: Quote, Profile, Research, Stock Buzz) and Ashmore Group (ASHM.L: Quote, Profile, Research, Stock Buzz).

A source said that London-based Spinnaker Capital was among large holders. An executive at Spinnaker in London said it does not own Dana Gas bonds currently and has not held them before. BlackRock owns about 30 percent of the outstanding sukuk, according to two separate market sources.

There is “absolutely no chance” of a white knight swooping in to repay the bond by the due date, a source close to the talks said.

In 2009, the Abu Dhabi government stepped in at the eleventh hour to help Dubai repay developer Nakheel’s $4.1 billion Islamic bond.

The sources said Dana, in which Crescent Petroleum owns a 20-percent stake, reached a standstill agreement with creditors in early October giving it six months to repay the bond.

Some creditors are preparing for a potential “post-default scenario”, one source familiar with the discussions said, in which no deal would be reached at all.

STOCKS AND BONDS SINK

Shares in Dana fell 8.5 percent to 0.43 dirhams on the Abu Dhabi bourse after the Reuters report before closing down 4.26 percent.

The shares have been battered by concerns over how Dana will find funds to repay the bond and limited communication from the company on the matter. The sukuk has a conversion price of 1.926 dirhams.

The sukuk, which is lightly traded, was quoted at a bid price of 68 cents on the dollar on Tuesday, down from 78 cents on the dollar on Monday, according to prices quoted by Nomura.

Dana is to issue a statement on Wednesday or early Thursday detailing its plans to restructure the bond, said two sources, who spoke on condition of anonymity as the matter is not public.

There was a “high probability” the Dana sukuk will be restructured, London-based investment firm Exotix said in a report earlier this year, adding its restructuring valuation on the privately-owned firm was 61.5 percent of par value.

Dana, which also has a 3-percent stake in Hungarian group MOL MOLB.BU, is not seen as a strategic entity for the UAE and so any government support is unlikely.

PAYMENT PROBLEMS

In May, Dana said it wanted to find a consensual deal with sukukholders to repay the bond, and said it had hired Blackstone Group (BX.N: Quote, Profile, Research, Stock Buzz), Deutsche Bank (DBKGn.DE: Quote, Profile, Research, Stock Buzz) and law firm Latham & Watkins as advisers.

Investors have hired Moelis and law firm Linklaters as advisers.

Dana, which has operations in the UAE, Egypt and Iraq’s Kurdistan region, says its cash flow has been affected by global economic conditions and regional events, including Egyptian unrest last year which delayed payments.

The company had a cash balance of 601 million dirhams ($164 million) as of June 30, 2012. Outstanding receivables on Egypt gas deliveries stood at 729 million dirhams and 1.2 billion dirhams in the Kurdistan region at that time.

In a recent interview, Dana board member and Crescent Chief Executive Majid Jafar said Egypt was paying the company for all fuel it was receiving from its operations and was optimistic outstanding payments would be settled.

Jafar said last week talks between the company and creditors were still ongoing, and have been “amicable and friendly.”

(Additional reporting by Mirna Sleiman, Rachna Uppal, David French and Daniel Fineren; Editing by Andrew Torchia and Mark Potter and David Cowell)

The UAE’s largest listed natural gas firm, hit by payment
delays from Egypt and Iraq’s Kurdistan region, will not repay a
$920 million convertible Islamic bond, or sukuk, when it matures
on Wednesday, the sources said.

However, Sharjah-based Dana has won more time to hammer out
a deal with bondholders, they added.

Dana Gas declined to comment.

Although indebted firms in the Gulf Arab state have extended
maturities on billions of dollars in bank loans since the onset
of the financial crisis in 2008-09, no sukuk have been
restructured or unpaid on maturity.

Saudi and Kuwaiti companies have defaulted on Islamic bonds
in the past, leading to complex debt negotiations which have
dragged on for years. Kuwait’s Investment Dar, which co-owns
luxury carmaker Aston Martin, defaulted on a $100 million
Islamic debt issue in 2009.

Dana has a $1 billion sukuk maturing on Oct. 31. It
repurchased about $80 million of the sukuk in 2008, leaving $920
million outstanding.

The five-year sukuk, which was issued with a 7.5 percent
coupon, has gained international interest as a majority of the
debt is said to be owned by large investment firms including
BlackRock Inc and Ashmore Group.

A source said that London-based Spinnaker Capital was among
large holders. An executive at Spinnaker in London said it does
not own Dana Gas bonds currently and has not held them before.
BlackRock owns about 30 percent of the outstanding sukuk,
according to two separate market sources.

There is “absolutely no chance” of a white knight swooping
in to repay the bond by the due date, a source close to the
talks said.

In 2009, the Abu Dhabi government stepped in at the eleventh
hour to help Dubai repay developer Nakheel’s $4.1 billion
Islamic bond.

The sources said Dana, in which Crescent Petroleum owns a
20-percent stake, reached a standstill a greement with creditors
in early October giving it six months to repay the bond.

Some creditors are preparing for a potential “post-default
scenario”, one source familiar with the discussions said, in
which no deal would be reached at all.

STOCKS AND BONDS SINK

Shares in Dana fell 8.5 percent to 0.43 dirhams on the Abu
Dhabi bourse after the Reuters report before closing down 4.26
percent.

The shares have been battered by concerns over how Dana will
find funds to repay the bond and limited communication from the
company on the matter. The sukuk has a conversion price of 1.926
dirhams.

The sukuk, which is lightly traded, was
quoted at a bid price of 68 cents on the dollar on Tuesday, down
from 78 cents on the dollar on Monday, according to prices
quoted by Nomura.

Dana is to issue a statement on Wednesday or early Thursday
detailing its plans to restructure the bond, said two sources,
who spoke on condition of anonymity as the matter is not public.

There was a “high probability” the Dana sukuk will be
restructured, London-based investment firm Exotix said in a
report earlier this year, adding its restructuring valuation on
the privately-owned firm was 61.5 percent of par value.

Dana, which also has a 3-percent stake in Hungarian group
MOL, is not seen as a strategic entity for the UAE and
so any government support is unlikely.

PAYMENT PROBLEMS

In May, Dana said it wanted to find a consensual deal with
sukukholders to repay the bond, and said it had hired Blackstone
Group, Deutsche Bank and law firm Latham &
Watkins as advisers.

Investors have hired Moelis and law firm Linklaters as
advisers.

Dana, which has operations in the UAE, Egypt and Iraq’s
Kurdistan region, says its cash flow has been affected by global
economic conditions and regional events, including Egyptian
unrest last year which delayed payments.

The company had a cash balance of 601 million dirhams ($164
million) as of June 30, 2012. Outstanding receivables on Egypt
gas deliveries stood at 729 million dirhams and 1.2 billion
dirhams in the Kurdistan region at that time.

In a recent interview, Dana board member and Crescent Chief
Executive Majid Jafar said Egypt was paying the company for all
fuel it was receiving from its operations and was optimistic
outstanding payments would be settled.

Jafar said last week talks between the company and creditors
were still ongoing, and have been “amicable and friendly.”

(Additional reporting by Mirna Sleiman, Rachna Uppal, David
French and Daniel Fineren; Editing by Andrew Torchia and Mark
Potter and David Cowell)

The UAE’s largest listed natural gas firm, hit by payment delays from Egypt and Iraq’s Kurdistan region, will not repay a $920 million convertible Islamic bond, or sukuk, when it matures on Wednesday, the sources said.

However, Sharjah-based Dana has won more time to hammer out a deal with bondholders, they added.

Dana Gas declined to comment.

Although indebted firms in the Gulf Arab state have extended maturities on billions of dollars in bank loans since the onset of the financial crisis in 2008-09, no sukuk have been restructured or unpaid on maturity so far.

Dana has a $1 billion sukuk maturing on October 31. It repurchased about $80 million of the sukuk in 2008, leaving $920 million outstanding.

The five-year sukuk, which was issued with a 7.5 percent coupon, has gained international interest as a large chunk of the debt is owned by large investment firms including BlackRock Inc (BLK.N: Quote, Profile, Research, Stock Buzz), Ashmore Group (ASHM.L: Quote, Profile, Research, Stock Buzz) and Spinnaker Capital.

There is “absolutely no chance” of a white knight swooping in to repay the bond by the due date, a source close to the talks said. In 2009, the Abu Dhabi government stepped in at the eleventh hour to help Dubai repay developer Nakheel’s $4.1 billion Islamic bond.

The sources said Dana, in which Crescent Petroleum owns a 20-percent stake, reached a so-called standstill agreement with creditors in early October giving it more time to repay the bond and that this was effective for up to six months.

However, some creditors are preparing for a potential “post-default scenario”, one source familiar with the discussions said, in which no deal would be reached at all.

Dana is to issue a statement on Wednesday or early Thursday detailing its plans on restructuring the bond, two sources said. The sources spoke on condition of anonymity as the matter is not public.

Shares in Dana fell 8.5 percent to 0.43 dirhams on the Abu Dhabi bourse after the Reuters report. The stock closed down 4.26 percent. The shares have been battered by concerns over how Dana will find funds to repay the bond and limited communication from the company on the matter. The sukuk has a conversion price of 1.926 dirhams.

Dana, which is privately-owned, is not seen as a strategic entity for the UAE and so any government support is unlikely.

PAYMENT PROBLEMS

In May, Dana said it wanted to find a consensual deal with sukukholders to repay the bond, and said it had hired Blackstone Group (BX.N: Quote, Profile, Research, Stock Buzz), Deutsche Bank (DBKGn.DE: Quote, Profile, Research, Stock Buzz) and law firm Latham & Watkins as advisers.

Investors have hired Moelis and law firm Linklaters as advisers.

The sukuk, which is lightly traded, was quoted at a bid price of 77 to 78 cents on the dollar on Tuesday, up from lows of about 68 cents in mid-September, indicating investors were hopeful of some sort of resolution.

Natural gas producer Dana, which has operations in the UAE, Egypt and Iraq’s Kurdistan region, says its cash flow has been affected by global economic conditions and regional events, including Egyptian unrest last year which delayed payments.

The company had a cash balance of 601 million dirhams ($164 million) as of June 30, 2012. Outstanding receivables on Egypt gas deliveries stood at 729 million dirhams and 1.2 billion dirhams in the Kurdistan region at that time.

In a recent interview, Dana board member and Crescent Chief Executive Majid Jafar said Egypt was paying the company for all fuel it was receiving from its operations and was optimistic outstanding payments would be settled.

Jafar said last week talks between the company and creditors were still ongoing, and have been “amicable and friendly.”

(Additional reporting by Mirna Sleiman, Rachna Uppal, David French and Daniel Fineren; Editing by Andrew Torchia and Mark Potter)

The UAE’s largest listed natural gas firm, hit by payment
delays from Egypt and Iraq’s Kurdistan region, will not repay a
$920 million convertible Islamic bond, or sukuk, when it matures
on Wednesday, the sources said.

However, Sharjah-based Dana has won more time to hammer out
a deal with bondholders, they added.

Dana Gas declined to comment.

Although indebted firms in the Gulf Arab state have extended
maturities on billions of dollars in bank loans since the onset
of the financial crisis in 2008-09, no sukuk have been
restructured or unpaid on maturity so far.

Dana has a $1 billion sukuk maturing on Oct. 31. It
repurchased about $80 million of the sukuk in 2008, leaving $920
million outstanding.

The five-year sukuk, which was issued with a 7.5 percent
coupon, has gained international interest as a large chunk of
the debt is owned by large investment firms including BlackRock
Inc, Ashmore Group and Spinnaker Capital.

There is “absolutely no chance” of a white knight swooping
in to repay the bond by the due date, a source close to the
talks said. In 2009, the Abu Dhabi government stepped in at the
eleventh hour to help Dubai repay developer Nakheel’s $4.1
billion Islamic bond.

The sources said Dana, in which Crescent Petroleum owns a
20-percent stake, reached a so-called standstill a greement with
creditors in early October giving it more time to repay the bond
and that this was effective for up to six months.

However, some creditors are preparing for a potential
“post-default scenario”, one source familiar with the
discussions said, in which no deal would be reached at all.

Dana is to issue a statement on Wednesday or early Thursday
detailing its plans on restructuring the bond, two sources said.
The sources spoke on condition of anonymity as the matter is not
public.

Shares in Dana fell 8.5 percent to 0.43 dirhams on the Abu
Dhabi bourse after the Reuters report. The stock closed down
4.26 percent. The shares have been battered by concerns over how
Dana will find funds to repay the bond and limited communication
from the company on the matter. The sukuk has a conversion price
of 1.926 dirhams.

Dana, which is privately-owned, is not seen as a strategic
entity for the UAE and so any government support is unlikely.

PAYMENT PROBLEMS

In May, Dana said it wanted to find a consensual deal with
sukukholders to repay the bond, and said it had hired Blackstone
Group, Deutsche Bank and law firm Latham &
Watkins as advisers.

Investors have hired Moelis and law firm Linklaters as
advisers.

The sukuk, which is lightly traded, was
quoted at a bid price of 77 to 78 cents on the dollar on
Tuesday, up from lows of about 68 cents in mid-September,
indicating investors were hopeful of some sort of resolution.

Natural gas producer Dana, which has operations in the UAE,
Egypt and Iraq’s Kurdistan region, says its cash flow has been
affected by global economic conditions and regional events,
including Egyptian unrest last year which delayed payments.

The company had a cash balance of 601 million dirhams ($164
million) as of June 30, 2012. Outstanding receivables on Egypt
gas deliveries stood at 729 million dirhams and 1.2 billion
dirhams in the Kurdistan region at that time.

In a recent interview, Dana board member and Crescent Chief
Executive Majid Jafar said Egypt was paying the company for all
fuel it was receiving from its operations and was optimistic
outstanding payments would be settled.

Jafar said last week talks between the company and creditors
were still ongoing, and have been “amicable and friendly.”

(Additional reporting by Mirna Sleiman, Rachna Uppal, David
French and Daniel Fineren; Editing by Andrew Torchia and Mark
Potter)

Batelco, whose move to buy a stake in Zain Saudi 7030.SE collapsed last year, is circling the Monaco & Islands portfolio of CWC, the British telecoms group operating in the Caribbean and formed through a demerger of Cable & Wireless in 2010.

Talks between both the parties are ongoing and a deal is not imminent, the sources said on Monday, speaking on condition of anonymity as the matter is not public.

BNP Paribas (BNPP.PA: Quote, Profile, Research, Stock Buzz) and Citigroup (C.N: Quote, Profile, Research, Stock Buzz) are advising Batelco on the transaction, while J.P. Morgan Chase (JPM.N: Quote, Profile, Research, Stock Buzz) is advising the seller, two of the banking sources said.

Citi is leading financing efforts for the transaction, according to one banker.

“Batelco has been keen to do a deal for a while now to address falling home revenue. A potential deal to buy CWC assets should give them presence in markets they are not in currently,” one the sources said.

Batelco and CWC both declined to comment.

Monaco & Islands operates in 12 markets, including the Maldives, Seychelles and Falkland Islands, and offers fixed-line, mobile, broadband and television services. Its brands include Monaco Telecom, Dhiraagu in the Maldives, and Sure in Britain’s Channel Islands and Isle of Man.

Monaco Telecom also holds a 36.8 percent stake in Roshan, a mobile phone operator in Afghanistan.

The CWC unit generated $586 million revenue in the group’s 2011/12 year when it had earnings before interest, dividend, tax and amortization of $186 million, according to its website.

Monaco & Islands had 543,000 mobile subscribers as of end-March and 125,000 fixed-line subscribers.

Batelco aims to make at least one acquisition in 2012 to offset falling domestic revenue, its chief executive told Reuters in April.

It had cash and bank balances of $286 million, according to its 2011 annual report, and could leverage its balance sheet to $1 billion or more for acquisitions, the CEO said.

The company teamed up with Saudi group Kingdom Holding 4280.SE to buy a 25 percent stake in Zain Saudi last year but the deal failed due to disagreements with the indebted Saudi telco’s banks.

Batelco owns Jordanian telecoms operator Umniah. It holds 27 percent of Yemeni mobile operator Sabafon, minority stakes in internet providers in Kuwait and Saudi Arabia and is also active in Egypt.

CWC, which had to cope with a faster-than-expected shift from voice services data, halved its dividend in May and said it was not seeing consistent recovery in the Caribbean.

Its shares have risen 30 percent in the past three months, narrowing year-to-date losses to 4.3 percent.

On July 3, European Union regulators cleared British mobile provider Vodafone’s (VOD.L: Quote, Profile, Research, Stock Buzz) 1 billion pound acquisition of fixed-line network operator Cable & Wireless Worldwide CWP.L>

CWW, which split from CWC two years ago, provides voice, data and hosting services to British government departments and companies while its cables span the globe.

(Additional reporting by Kate Holton in London and David French in Dubai; Editing by Dan Lalor)

HSBC is buying gross assets valued at $769 million at the end of 2011 and is expected to complete the deal in the second half of this year.

U.K.-based Lloyds, which is in the process of reducing its international presence, said the impact of the sale on its accounts was not expected to be material.

HSBC is acquiring a business with approximately 8,800 personal and commercial customers and a loan book of around $573 million. The deal excludes Lloyds’ other private and expatriate off-shore operations based in the UAE.

“Acquisition opportunities in this region are scarce, and this is an important opportunity that we have seized,” Simon Cooper, regional chief executive of HSBC Bank Middle East, told a media conference call.

He declined to give a value for the deal, which is subject to regulatory clearance. He denied HSBC was looking to buy Royal Bank of Scotland’s (RBS.L: Quote, Profile, Research, Stock Buzz) banking licence in the country.

Lloyds, 40 percent owned by the British government after a state bailout during the 2008 credit crisis, is shrinking to halve its international presence and cut 15,000 jobs.

HSBC’s largest operations in the Middle East and North Africa region are based in the UAE. The bank has a presence in 14 countries across the region, which made a profit before tax of $1.49 billion in 2011.

The Lloyds transaction will give HSBC a branch in the upmarket Jumeirah neighbourhood of Dubai and a service centre in the Arabian Ranches area.

(Reporting by Mirna Sleiman and Amran Abocar; Editing by Sitaraman Shankar and Erica Billingham)

Mubadala, which has stakes in General Electric and
private equity firm Carlyle, said the investment will
give it a 5.63 percent preferred equity interest in Centennial
Asset Brazilian Equity Fund, the personal investment company of
Brazilian billionaire Eike Batista, who is behind the EBX Group.

The investment comes as EBX seeks to raise an additional $1
billion for its shipbuilding and ship-leasing company OSX Brasil
and billions more in debt and equity capital to expand
oil and gas output, complete port facilities, build thermal
power plants, and dig iron ore and coal mines.

It is the $46 billion Mubadala fund’s biggest investment in
Latin America and part of efforts to boost spending in Latin
America and other emerging markets that are growing faster than
traditional markets in North America and Europe.

“This… transaction marks our first significant direct
investment into one of the fastest growing markets and is an
important step in Mubadala’s development of strategic
opportunities in Brazil and Latin America,” Khaldoon al-Mubarak,
Mubadala’s chief executive and managing director, said in a
statement.

The EBX investment follows a report this week that Mubadala
is in talks to take a stake in a Guinean bauxite joint venture.

Shares of Batista-controlled MMX Mineracao, EBX’s
iron ore unit, rose 3.91 percent in Sao Paulo, while LLX
Logistica, EBX’s port and transportation company,
rose 0.54 percent. OSX rose 0.47 percent, while electricity,
coal and natural gas unit MPX rose 1.10 percent.
Brazil’s benchmark Bovespa index of the Sao Paulo stock exchange
rose 0.9 percent.

OGX, the EBX group’s oil and gas unit, fell 1.9
percent. Brazil’s No. 2 oil company by market value, OGX plans
to produce 1.4 million barrels of oil and natural gas equivalent
by 2020.

That is about half the current output of the United Arab
Emirates, of which Abu Dhabi is a part.

Through Centennial, the investment gives Mubadala an
indirect stake MMX, LLX, MPX, OSX and OGX as well as in sports
marketing, gold mining, healthcare, beauty products and
entertainment companies.

While most EBX companies are in the start-up phase, the
group is expected to generate $15 billion in annual operational
earnings by the end of 2015, Batista, Brazil’s richest man, said
in August.

The deal will also give Mubadala, which has assets worth
around $46 billion, “participation in both EBX and Mr. Batista’s
pipeline of future investment opportunities, such as technology
companies, cement, fertilizers, entertainment and others,” the
company said.

While EBX is based in Brazil, the world’s 6th largest
economy, Batista and his EBX companies also have mining and port
assets in Chile and Colombia, which could help open those
markets to further Mubadala investment in Latin America.

Mubadala is seeking ways to use its oil revenue to develop
and sustain Abu Dhabi and its social services in view of
diminishing oil reserves.