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Jafza eyes $900m syndicated loan

London, March 28, 2012

Dubai's Jebel Ali Free Zone (Jafza) is preparing to launch a large syndicated loan to partly refinance its $2 billion Islamic bond that matures in November, bankers familiar with the deal said.

Jafza, which runs an industrial free zone on the outskirts of Dubai, is considering a $900 million syndicated loan, which will be followed by a $600m sukuk and up to $500m of cash repayments over the coming months, one of the bankers said.

The Dubai government-owned free zone has mandated Abu Dhabi Commercial Bank, Emirates NBD and Dubai Islamic Bank, with Citi and Standard Chartered acting as co-ordinators, the bankers added.

'On the loan side, it's almost there. The sukuk will follow shortly afterwards and the loan will be beefed up if there is a gap, but I don't think there will be,' a Middle East-based banker said.

Jafza's November maturity was initially highlighted as one of the biggest refinancing challenges in the Gulf region in 2012, but one of the bankers added the level of interest so far strongly suggests the company will secure the refinancing.

Pricing will be in line with similar deals for Dubai-based entities in 2012, the Middle East-based banker added.

A margin of 300 basis points for a five-year deal is an acceptable average for Dubai-based deals, a second Middle East-based banker said.-Reuters




Tags: Dubai | Jebel Ali Free Zone | Jafza | sukuk | Islamic bond | loan |

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