Al Jaber closes $400m Ijara facility
Dubai, April 19, 2008
Al Jaber Group, one of the leading business groups in the UAE, announced today that it has successfully closed a $400 million (Dh1.47 billion) syndicated loan facility.
The facility will support the ongoing growth of the group including the purchase of machinery and equipment. This five-year facility has been provided under a Sharia-compliant Ijara structure, a statement said.
BNP Paribas, Dubai Islamic Bank (through its investment banking arm, Millennium Capital Limited, regulated by the DFSA), First Gulf Bank, and National Bank of Abu Dhabi served as the underwriters and bookrunners for the transaction, which has been priced in both US dollars and UAE dirhams.
The transaction attracted strong support from the market and is being provided by a regional and international syndicate of 11 banks, confirming the strength of Al Jaber’s breadth of support among the global financial services community.
Demand was especially strong from the company’s Middle Eastern, European and Asian investor base, said the statement.
The markets were very receptive to the appeal of the private sector in Abu Dhabi, in general, and to the strength of Al Jaber’s credit, in particular. The overall strong security package and innovative dual-currency Islamic structure of the transaction provided additional incentives.
“The successful closure of this internationally backed facility provides us with increased flexibility to fund our ongoing organic growth, and we are grateful to all the participating banks for their support,” said Obeid Al Jaber, chairman, Al Jaber Group.
“Nearly four decades after the company was founded, we remain focused on the future, and this transaction will help ensure that we continue to expand and explore new horizons,” he added. “With some 40,000 employees, making us one of the UAE’s largest private-sector employers, we will also continue to contribute to the economic growth and diversification of Abu Dhabi and the wider UAE. On behalf of Al Jaber Group, I am very pleased to share this significant announcement with our stakeholders here in the Middle East and across the world.” – TradeArabia News Service