Jafza repays $2bn Islamic bond
Dubai, June 24, 2012
Dubai state-owned industrial hub Jebel Ali Free Zone (Jafza) repaid in full a 7.5 billion dirhams ($2.04 billion) Islamic bond, or sukuk, on June 21, five months ahead of maturity, a regulatory filing from the company said on Sunday.
The early redemption of the sukuk certificates was expected after the company, a unit of state conglomerate Dubai World , secured agreement from bondholders to change the terms of the notes last month.
The sukuk was refinanced through a $1.2 billion sharia-compliant loan, along with a new sukuk issue of $650 million and the company's own cash resources.
The timely repayment of Jafza's sukuk was a major investor concern this year, but early redemption has helped lift confidence in the emirate's credit story, as demonstrated by a strong rally on Dubai sovereign and government-related bonds last week. - Reuters
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