Saudi Arabia: investment incentives
The Saudi Arabian General Investment Authority and the Supreme Economic Council agreed on July 2 to introduce new measures to attract foreign direct investment. The changes aim to speed up the process of gaining investment permission and trade registration, and cut the kingdom's dependence on expatriate labour. They include: exemptions on customs tariffs; more efficient judicial procedures for the resolution of trade disputes; stronger guarantees for investors; and special incentives for locals and foreigners to invest in less-developed regions. Foreign investors will now also be able to gain entry visas through Saudi embassies without having a letter of invitation.
Poland: curve pushed to 50 years
Poland became the first central European sovereign – and only the third European country after a French euro issue and a UK bond in sterling – to extend its maturity curve to 50 years.
It sold the €500 million 4.25% bond on July 6 via lead managers Dexia and HSBC. Investors hungry for yield, and accounts looking for duration for asset and liability management purposes drove the transaction. The bonds were priced at 98.999 to give a spread of 38 basis points over mid-swaps.