Berber's $130m issue success
Dubai , September 22, 2007
Liquidity Management Centre (the Mandated Arranger), Emirates Islamic Bank (the Co-Arranger) and Alpen Capital (ME) Limited (the Financial Advisor) have successfully closed the $130 million Sukuk issue arranged for Berber Cement Company.
The $130 million Sukuk proceeds along with $70 million equity contribution by Berber Cement Company's shareholders will be used to complete the development and construction of the $200 million Berber cement project over the next 18 months, said an official spokesman.
The Investment Agency Sukuk which has been structured by LMC is the first Musharaka structure based on Al-Wakala bel Istithmar contract between the Investment Agent Berber Cement Company acting through its agent - National Cement Company PSC - Dubai, UAE (the Wakeel) and the Sukukholders acting through their agent - Berber Sukuk Company BSC - Bahrain (the Issuer).
The Sukuk will be for seven years with an average life of 4.75 years and paying semi-annual fixed returns; promoted and fully supported by a guarantee from Berber Cement Company's GCC based shareholders; National Cement Company PSC from Dubai, UAE; National Holding Company from Abu Dhabi, UAE; The Arab Investment Company SAA from Riyadh, Saudi Arabia (TAIC); and Islamic Corporation for the Development of the Private Sector (ICD) a member of the Islamic Development Bank group in Jeddah, Saudi Arabia.
The Sukuk was fully subscribed for by the following major regional institutions; Emirates Islamic Bank as Co-Arranger; Bahrain Islamic Bank, Sukuk Exchange Centre (Tadawul) and Liquidity Management Centre as Senior Lead Managers; Boubyan Bank and Sharjah Islamic Bank as Co-Lead Managers; and Khaleeji Commercial Bank, Masraf Al Rayyan and BLOM Development Bank as Managers.
'The Board of Directors as well as the shareholders and the Higher Management of Berber Cement Company were instrumental in securing this financial package - not to forget the team efforts of LMC and Alpen Capital. Berber Cement Company will look forward to continue to have future business relations with them,' said Berber Cement Company chairman Mohamed Al Ghurair.TradeArabia News Service