Jafz issues $650m sukuk due 2019
Dubai, June 13, 2012
Jebel Ali Free Zone (Jafz) announced that it has successfully priced the issuance of $650 million sukuk certificates due 2019, marking the company’s first US dollar-denominated issuance and first transaction in the international debt capital markets since 2007.
The certificates pay a profit rate of 7.0 per cent per annum to investors, a statement from Jafz said. The proceeds of the sukuk will be used to partly refinance the company’s outstanding Dh7.5 billion ($2.04 billion) sukuk due November 2012, ahead of the stated maturity.
Jafz will also contribute proceeds of Dh 4.4 billion ($1.2 billion) bank facility and its own cash sources towards the redemption.
The transaction saw strong demand from regional and international investors, with the order book 3.1 times subscribed. The order book was well-diversified, both in terms of investor type and geography, the statement said.
European investors accounted for 26 per cent of the allocation, Asian accounts 7 per cent, US offshore investors 2 per cent and Middle Eastern investors took up the balance of 65 per cent.
Salma Ali Saif Bin Hareb, chief executive, Jafz, said: “The success of this transaction is a testament to the confidence that investors have in the Jafz credit story, which is underpinned by strong, recurring cashflows as well as a strategic importance to the overall development of the emirate of Dubai.”
“This successful fund-raising exercise is another step towards execution of Jafz’s refinancing and deleveraging strategy and the positive response from the market to the transaction and its strategy is especially encouraging,” he concluded. – TradeArabia News Service