The Middle East and North Africa region is on the cusp of a new energy revolution. US$50 billion has been set aside for investment in solar power projects by 2020, as MENA governments seek to maximise the long term value of their hydrocarbon resources by utilising solar energy to meet growing domestic consumption. Whilst these ambitious targets present a significant opportunity for potential sponsors of solar power projects in the region, there are a number of key considerations which sponsors
How Project Bonds Can Release Asset Value
Whilst project bonds have for some time been a popular source of financing for projects in the US, they have historically been slow to gain momentum in other parts of the world, including the Middle East.
A number of explanations have been advanced for this – in the Middle East, the deep pool of bank market liquidity for Middle East projects, supplemented by funding from export credit agencies and development banks, has generally been sufficient to meet financing
How LIBOR Administration Change will Impact Financial Contracts
This month, the UK Financial Conduct Authority formally authorised ICE Benchmark Administration Limited (IBA) to assume responsibility for the administration of the London Interbank Offered Rate (LIBOR).
IBA is a subsidiary of the Intercontinental Exchange Group, a leading global network of exchanges and clearing houses that administers other benchmarks such as the French CAC40 and the Dutch AEX.
Guided by the Wheatley Review
The authorisation of IBA to administer LIBOR reflects one of the key recommendations of the Wheatley
#FATCA Update: Six Month Grace
On 12 July 2013, the US Internal Revenue Service issued a revised timeline for the implementation of the requirements of sections 1471 to 1474 of the Internal Revenue Code, commonly referred to as FATCA.
Highlights
The implementation of FATCA withholding on US source income has been delayed by six months and will now commence on 1 July 2014 (rather than 1 January 2014).- The grandfathering period for FATCA withholding on US source income has also be extended by six
How #Saudi New Weekend Impacts Legacy #Financing Agreements
The Custodian of the Two Holy Mosques, King Abdullah, announced on Sunday June 23, 2013 that the official working days in Saudi Arabia will change to Sunday to Thursday and the weekend to Friday to Saturday, with effect from June 29, 2013 (the “Royal Decree”). The change aligns Saudi Arabia with the other members of the Gulf Co-operation Council, Oman having changed its weekend earlier this year, and provides a four working day overlap with other business centres globally.
LIBOR No More – The Wheatley Review and LIBOR Changes
The second half of 2012 saw a number of major financial institutions censured for the alleged manipulation of submissions made to the British Bankers’ Association (BBA) for the compilation of BBA LIBOR. In addition to direct enforcement action against those alleged to have participated in such manipulation, regulators have also taken significant steps to reform LIBOR itself and the method by which it is determined. GCC financial institutions and borrowers will be concerned to ensure that these
Japanese Tax Law Reforms Facilitate Issuance of Sukuk by Japanese Companies
The Japanese Financial Services Agency has issued a document (see Taxation of J-Sukuk Q&A) highlighting reforms to Japanese tax laws implemented in 2011 that facilitate the issuance of sukuk by Japanese companies (J-Sukuk).
Following these reforms, distributions paid on J-Sukuk benefit from the same favourable withholding tax treatment as interest or coupons paid on corporate bonds issued by Japanese companies. In addition, if certain conditions are fulfilled, transfers and re-transfers of real estate that constitute the assets referenced in
Eurozone crisis – Permitted in the Middle East?
In February, Greece launched its sovereign debt swap, pursuant to which holders of EUR 206 billion of its bonds were invited to swap their existing holdings for a package of instruments with a nominal value of just 46.5 per cent. of the par value of their current bonds. This invitation for voluntary participation in the debt swap is backed by the threat of a retroactive collective action clause, enacted by the Greek parliament shortly before the launch of the invitation