Saudi Arabia completes first loan operation
The bank acted as custodian and agent lender in the transaction which involved borrowing shares from a large regional asset owner to lend to global institutional investors.
HSBC hailed the transaction as a milestone for Saudi Arabia’s capital markets.
“Saudi Arabia’s opening up of its capital markets to securities lending for the first time allows us not only to help asset owners receive potentially higher returns from their Saudi investments, but also facilitates more liquidity in the market and improves price discovery, ”said Adnan Hussain. , Global Head of Agency Securities Lending at HSBC.
Saudi Arabia only allowed foreign investors direct access to its capital markets in 2015. Since then, it has sought to internationalize in line with the Saudi Vision 2030 economic reform plan.
A key development has been the inclusion of Saudi stocks in the emerging market indices FSTE Russell and MSCI. The national stock exchange, the Tadawul, is ranked tenth in the world with securities valued at $ 2.4 trillion.
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