RIO DE JANEIRO, April 30, 2024 /PRNewswire/ — Following approval from the relevant regulatory authorities, Vale S.A. (“Vale” or “Company”) is pleased to announce the completion of its approximately US$2.5 billion sale to Manara Minerals, a joint venture between Ma’aden and Saudi Arabia’s Public Investment Fund, under which Manara Minerals will acquire 10% of Vale Base Metals Limited (“VBM”).

This strategic partnership, first announced in July 2023, will accelerate value generation from the best-in-class set of assets and projects VBM has across its portfolio, allowing VBM to help advance the global energy transition at a faster pace and at scale across the key critical mineral jurisdictions where it operates. Over the next decade, VBM is expected to invest in new projects across Brazil, Canada and Indonesia, moving towards a significant increase in copper production from 350kt/year to 900kt/year and in nickel production from 175kt/year to 300kt/year.

In July 2023, Vale S.A. also announced an agreement on a strategic partnership with Engine No. 1 under which the U.S.-based investment firm would own a 3% equity stake in VBM. Following further negotiations in recent months, both sides have agreed not to move forward with the previously agreed terms and conditions but remain open to future partnerships. Engine No. 1 is a valued partner whose commitment to creating sustainable infrastructure and supply chains is complementary to Vale’s mission as a responsible critical materials provider.

“We are proud to close a major milestone in our Energy Transition Metals platform, following a successful business carve-out. This strategic investment by Manara reflects the confidence in our unique mineral endowment and ability to deliver metals needed for the energy transition. Manara brings mining experience and is a key strategic partner with a shared long-term view,” said Eduardo Bartolomeo, Vale’s CEO.

Mark Cutifani, Chair of VBM, said, “We are pleased to officially welcome Manara Minerals as a strategic partner in Vale Base Metals as we look to unlock operational and financial value from our high-quality portfolio of assets and position ourselves as the leading energy transition materials company, and we look forward to potential future cooperation with Engine No. 1.”

Bob Wilt, Vice Chairman, Manara Minerals, and CEO, Ma’aden, said: “As the inaugural investment made by Manara, our partnership with VBM is a strong statement of the company’s ambition and mandate to globally source minerals that are vital for sustainable and diversified economic growth. We will continue to build mining as the third pillar of the Saudi economy, and we look forward to working with VBM at a time when critical minerals have never been more important.”

Contact: Media Relations, Vale S.A. – [email protected]; Vale Base Metals – [email protected]

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We are thrilled to announce the shortlist for the esteemed PayTech Awards 2024 by FinTech Futures. Congratulations to all the finalists!

You can view the full shortlist on informaconnect.com/paytech-awards/the-shortlist.

After a rigorous evaluation process, a select group of contenders has emerged, representing the pinnacle of achievement in payment technology. From groundbreaking digital initiatives to transformative partnerships, the finalists showcase excellence and ingenuity across various categories.

This year marks the seventh edition of the PayTech Awards, a prestigious platform dedicated to honoring the trailblazers shaping the future of payments. With categories ranging from ‘Top Innovation in Payments’ to ‘Best Business Payment System’, the awards highlight the diverse talent and creativity driving the industry forward.

The awards ceremony is scheduled to take place at the magnificent Merchant Taylors’ Hall in London on 28 June. Over 200 esteemed guests, including industry leaders, innovators, and visionaries, will gather for an evening of celebration, networking, and inspiration.

Attendees can expect an unforgettable experience, complete with gourmet dining, captivating entertainment, and an engaging inspirational speaker.

For those eager to secure their presence at this prestigious event, a range of seating options and packages are available, catering to every preference and budget. Explore the available packages and book your place at the PayTech Awards ceremony here.

Additionally, organizations interested in elevating their brand presence and aligning with the spirit of innovation are invited to explore sponsorship opportunities. By partnering with the PayTech Awards, companies can showcase their commitment to driving progress and fostering excellence within the payment technology landscape.

Source: fintechfutures.com

The post Finalists announced for PayTech Awards 2024 appeared first on HIPTHER Alerts.

BRUSSELS, April 30, 2024 /PRNewswire/ — Results for the first quarter ending 31 March 2024

Financial highlights (excluding impacts from Russian sanctions) 

• On an underlying basis, business income reached €423 million, an increase of 2% year-on-year. When excluding an exceptional billing adjustment, underlying business income would have increased by 3% compared to last year.
• Quarterly underlying interest income increased by 19% to €283 million driven by prevailing interest rates.
• Underlying operating expenses increased by 5% to €321 million. Following a step-up in investment in 2023 to support our strategic ambition to enhance digital capabilities and IT infrastructure, expenses growth is trending back towards the ‘through-the-cycle’ target of 4-6% on a full-year basis.
• Underlying operating profit increased by 12% to €385 million and underlying net profit increased by 13% to €289 million, supported by a very robust business performance and helped by sustained high interest rates.
• Underlying earnings per share rose by 13% to €91.8 per share, reflecting the continued increase in net profit.
• Underlying EBITDA margin increased by 1.7 percentage points to 58.7% on year-on-year basis.
• The impacts of Russian sanctions are highlighted in a dedicated section at the end of this press release.

Lieve Mostrey, Chief Executive Officer of Euroclear Group, commented:

“Euroclear continues to perform extremely well, as we achieved another very strong quarter and delivered on our strategy, particularly in the funds business. We made significant progress in developing Euroclear FundsPlace by teaming up with new partners such as iCapital or Spuerkeess and making a strategic investment in blockchain-based funds marketplace IZNES. Providing access to a wide range of funds services, Euroclear FundsPlace delivers risk-mitigation, automation and efficiency at scale to a growing number of clients.

In this first quarter of 2024, the Russian sanctions and countermeasures continued to have a material impact on our operations. We are closely following the discussions at EU level about the use of profits generated by the Russian immobilised assets. Our teams continue to respond well to this unprecedented situation and remain focused on minimising the legal, operational, financial and reputational risks for our company and our clients while maintaining normal business operations.  

As Valérie Urbain is now taking over as CEO of Euroclear, I feel proud and honoured to have been able to lead Euroclear’s growth journey and further reinforce our position as trusted financial market infrastructure. The dedication of our colleagues across all locations, the support of all Euroclear stakeholders – including the Board, our shareholders, customers and partners – have been critical to our success. I am very grateful to everyone involved and will keep Euroclear close to my heart. I know that I leave the company in safe and capable hands.”

Business performance 

The key operating metrics (end of period unless stated otherwise) demonstrate a strong business performance during the period.

With the continued increase in equity market valuations coupled with robust results in fixed income, assets under custody have reached a new record at €39.1 trillion (+7%), growing for the sixth quarter in a row. 

Funds assets under custody were boosted by ETF growth and higher stock markets valuations and reached an all-time record level.   

The Collateral Highway outstanding progressively recovered thanks to favourable market conditions characterised by the stabilisation of monetary policy and the prospect of lower interest rates in the coming quarters.       

Milestones in global funds strategy
The first quarter of 2024 was marked by a number of achievements in developing Euroclear’s funds business, a key pilar in the company’s strategy. Euroclear FundsPlace offers fund management companies, banks, institutional investors and custodians a single point of access to more than 250,000 funds.

In Q1 2024, Euroclear acquired a stake in IZNES, a pan-European funds marketplace based on blockchain technology^[1]. Through this strategic partnership, Euroclear will complement its funds services on the French market and beyond and continue to support the development of innovative funds distribution models.

Banque et Caisse d’Epargne de l’Etat Luxembourg (Spuerkeess) has announced in February 2024 that it will be moving the majority of its fund portfolio to Euroclear FundsPlace in order to centralise the distribution and execution services of its funds. Euroclear’s funds platform will manage the lion’s share of Spuerkeess’ portfolio from now on and collect trailer fees on external custodians as well.

Euroclear also announced a partnership with global fintech platform iCapital. Euroclear’s clients will gain enhanced access to a broader range of alternative investments, including private equity, private credit, real estate, infrastructure, and hedge funds. The iCapital funds available on iCapital Marketplace will complement and expand Euroclear FundsPlace’s current offerings.

Euroclear hosted its first major funds-dedicated conference – Euroclear FundsCo – in London on 26 March. This inaugural Euroclear funds event brought together more than 200 senior representatives from across the funds industry to discuss future global trends.

Euroclear’s open architecture helps streamline collateral management  Euroclear’s international Central Securities Depository, Euroclear Bank, has become an eligible securities collateral location of Eurex Clearing AG. Through this partnership, clients of Euroclear Bank and Eurex Clearing will be able to post collateral directly to Eurex Clearing with the ability to further optimise the pool of collateral held in Euroclear Bank. The service offering increases operational efficiency for market participants and streamlines the collateral management process. Eurex Clearing already uses Euroclear Bank as an eligible securities settlement location.

Russian sanctions  

Financial impacts of the Russian assets in Q1 2024

• The Russian sanctions and countermeasures continue to have a significant impact on Euroclear’s earnings, as €1.6 billion of the €1.9 billion interest income relate to Russian sanctioned assets.
• The sanctions and Russian countermeasures resulted in direct costs of €17 million and a loss of business income of €6 million.
• Euroclear’s net profit related to the Central Bank of Russia’s (CBR) immobilised assets as from 15 February amounts to €557 million and will be reported and retained separately.

Update on Russian sanctions and countermeasures 

Russia’s invasion of Ukraine resulted in market-wide application of international sanctions. Euroclear considers the application of international sanctions as a key priority. Therefore, well established processes are in place which have allowed the group to implement the sanctions while maintaining our normal course of business.

As a result of the sanctions, blocked coupon payments and redemptions owed to sanctioned entities continue to accumulate on Euroclear Bank’s balance sheet. At the end of Q1 2024, Euroclear Bank’s balance sheet totalled €199 billion, of which €159 billion relate to sanctioned Russian assets.

In line with Euroclear’s Risk Appetite and Policies and as expected by the EU Capital Requirements Regulation, Euroclear’s cash balances are re-invested to minimise risk and capital requirements. In the first quarter of 2024, interest arising on cash balances from Russian-sanctioned assets was approximately €1.6 billion. Such interest earnings are driven by the prevailing interest rates and the amount of cash balances that Euroclear is required to invest. Subject to Belgian corporate tax, these earnings generated almost €400 million tax revenue for the Belgian State. As such, future earnings will be influenced by the evolving interest rate environment.

 Effective 15 February 2024, the EU Council adopted a Regulation^[2] providing for an obligation for Central Securities Depositories holding reserves and assets of the Central Bank of Russia^[3] to apply specific rules in relation to the cash balances accumulating due to restrictive measures. These central securities depositories, including Euroclear, should account for and manage such extraordinary cash balances separately from their other activities, should keep separate the net profit generated and should not dispose of these ensuing net profits (e.g. in the form of dividends to shareholders). Euroclear has since the imposition of sanctions reported the profitability separately and now, in addition, Euroclear is reporting separately the profitability related to the Central Bank of Russia’s immobilised assets as from 15 February 2024 – as disclosed in the table above.

Euroclear continues to act prudently and to further strengthen its capital by retaining Russian sanction related profits as a buffer against current and future risks. There are still many unknown risks given the current external climate and how it could evolve.

Various parties in Russia contest the consequences of the application of sanctions, with a significant number of legal proceedings ongoing, almost exclusively in Russian courts. The impact of the lawsuits on Euroclear is uncertain but the probability of unfavourable rulings is high since Russia does not recognise the international sanctions. Euroclear will continue to defend itself against all legal claims.

Euroclear notes that various options to use profits generated by sanctioned amounts held by financial institutions, including Euroclear, for the financing of Ukraine are being considered. Euroclear is focused on minimising potential legal, financial and operational risks that may arise for itself and its clients from the implementation of any proposals made or measures taken, while complying with its obligations.

Annexes

Infographic – https://mma.prnewswire.com/media/2401629/Euroclear1_Infographic.jpg

Euroclear Bank and Euroclear Investments are the two group issuing entities. The summary income statements and financial positions at Q1 2024 for both entities are shown below.

These figures are unaudited. The computation of application of article 1.8 of EU n°2024/576 is pending implementation of the final text and procedures which could still change the figures.

About Euroclear

Euroclear group is the financial industry’s trusted provider of post trade services. Guided by its purpose, Euroclear innovates to bring safety, efficiency, and connections to financial markets for sustainable economic growth. Euroclear provides settlement and custody of domestic and cross-border securities for bonds, equities and derivatives, and investment funds. As a proven, resilient capital market infrastructure, Euroclear is committed to delivering risk-mitigation, automation, and efficiency at scale for its global client franchise. The Euroclear group comprises Euroclear Bank, the International CSD, as well as Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden and Euroclear UK & International.

^[1] The transaction is subject to customary closing conditions and regulatory approvals.
^[2] Council Regulation (EU) 2024/576 of 12 February 2024 amending Regulation (EU) 833/2014
^[3] With a total value of more than € 1 million

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