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
More Finance & Capital Market Stories
- Bahrain firms plan IPOs
- Serbia wins $1bn Abu Dhabi loan
- Key equity banker resigns from Saudi Fransi
- DMCC to boost Islamic commodity trade with tie-ups
- IDB, KIA units to invest in Morocco
- First Gulf to set up $1bn sukuk in Malaysia
- Singapore’s UOB Bullion and Futures joins DGCX
- Infrastructure investment ‘key to growth’
- BKIC declares 30pc dividend
- StanChart profit falls 16pc in 2013
- Veteran Saudi banker to head AMF
- Dubai World prepays $284m to creditors
- EFG-Hermes sells Damas stake to Mannai
- Ultra rich number to grow 35pc in Mideast
- Saudi IPO market 'set for big year'
- RAK 'exploring' ceramics unit stake sale
- Bahrain Bourse wins key UK award
- Alba backs Euromoney forum
- URC bond rating upgraded to stable outlook
- GCC urged to set up onshore financial centres
- Consolidation push paying off for Bahrain banks
- Mubadala to focus more on US, Europe
- Six banks join plan for shared customer data register
- UAE economy grows 4pc in 2013
- Egypt foreign reserves up to $17.3bn
- StanChart opens second branch in Iraq
- Oil below $90 to hit GCC economies
- Payfort offers zero deposit scheme to SMEs
- In a first, NCB Capital names female CEO
- Du enters $1.17 billion financing deals