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The Dubai Financial Market announced that HSBC Bank succeeded in executing the first international Securities Borrowing and Lending (SLB) deal on the stock exchange, which is the first transaction to be implemented through this model, and it is also the latest step in the continuous development and expansion in the capital markets. in Dubai.
Providing comprehensive and integrated transactions with direct sales is a significant development in the Dubai Financial Market, as it enables investors to hedge portfolios more effectively and benefit from additional opportunities on traded securities.
The lending and borrowing of securities is also part of the vital infrastructure through the facilities organized for the short sale of securities, which also allows asset owners and managers to enhance the returns of their long-term properties, by lending their securities to those interested in return for an annual fee, while preserving their rights to own securities. .
HSBC facilitated the transaction, acting as the custodian, lending representative to the large asset owner and borrowing representative as well. The bank also acted as a lending agent, and the main intermediary that borrows shares listed on the Dubai Financial Market from the owner of the assets.
Infrastructure efficiency
Hamed Ali, Chief Executive Officer of the Dubai Financial Market and Nasdaq Dubai, said: “I am pleased to express my appreciation to the HSBC team, which worked hard to implement the first successful international securities lending and borrowing transaction in the Dubai Financial Market, through the infrastructure of the Dubai Clearing Company. This model confirms the effectiveness of the market infrastructure by brokerage firms, investment trustees and investors. We look forward to expanding the base of beneficiaries of the securities lending and borrowing facilities in the market.”
For his part, Adnan Hussain, Global Head of the Securities Lending and Liquidity Services Agency at HSBC Bank, said: “We are pleased to cooperate with the Dubai Clearing Company, and to harness our deep knowledge of the local and global market in completing this international deal, the first of its kind in the Dubai Financial Market. ; As securities lending activities contribute to revitalizing and strengthening the market, and facilitate the effective performance of the capital markets, it is expected to attract more international investors to the financial markets of the UAE.
development
Nabil Al Balushi, Executive Director and Head of Market and Securities Services Department in the UAE and Regional Corporate Sales, Middle East, North Africa and Turkey at HSBC Bank, said: “We are pleased to complete this transaction as a lending and borrowing representative, lending agent and main broker at the same time. to ensure the effective completion of this transaction. This transaction is further evidence of HSBC’s commitment to the development of capital markets in the UAE, in line with our ambition to be the leading international bank in the world, and enabling us to connect customers with the great opportunities available in this vital and vibrant region.
