21st Nov 2005 09:05
HSBC Holdings PLC21 November 2005 HSBC AND THE SAUDI BRITISH BANK TO ESTABLISH FIRST INDEPENDENT INVESTMENT BANK IN SAUDI ARABIA The Saudi Arabian Capital Market Authority (CMA), the newly-establishedregulator of the stock exchange and capital markets in Saudi Arabia, has givenits approval to HSBC and The Saudi British Bank (SABB) to establish the firstfull-service, independent investment bank in the Kingdom of Saudi Arabialicensed under the new Capital Market Law. HSBC, through a wholly-owned subsidiary, will hold 60 per cent of the equity inthe new company and SABB, in which HSBC has a 40 per cent shareholding, willhold the remaining 40 per cent. The joint venture, to be known as HSBC Saudi Arabia Limited, will be establishedas a limited liability company headquartered in Riyadh, with a share capital ofSAR50 million (US$13.33 million). Its formation is subject to obtaining aninvestment licence from the Saudi Arabian General Investment Authority and acommercial registration from the Saudi Arabian Ministry of Commerce andIndustry. HSBC Saudi Arabia Limited will provide corporate finance and asset managementadvisory services to corporations and institutions in Saudi Arabia as well asinvestment advisory services to individual investors. In addition, the newcompany will manage SABB's domestic and international equity brokerage andsecurity services businesses. Its corporate finance units will provide a wide range of services related to theissuance of initial public offerings, rights issues, private placements andIslamic and conventional debt securities. The joint venture will also provideproject finance, privatisation, and merger and acquisition advice to a broadrange of clients. Stephen Green, Group Chief Executive of HSBC Holdings plc, said: "This yearmarks the 55th year of HSBC's continuous presence in the Kingdom of SaudiArabia, first through The British Bank of the Middle East and then through TheSaudi British Bank. We are optimistic about the long-term prospects for growthin the Saudi Arabian economy and look forward to providing investment bankingand asset management expertise and products to the local market." Sheik Abdullah Al-Hugail, Chairman of The Saudi British Bank, said: "Werecognise and appreciate the significant value added by HSBC to the capabilitiesof The Saudi British Bank. We are pleased to be able to bring to our clients inSaudi Arabia an even broader level of global expertise through the establishmentof this new investment banking vehicle." This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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