JAFZ Successfully Issues US$ 650 million Sukuk due 2019

Salma Hareb, CEO of JAFZ

Dubai, United Arab Emirates: June 13, 2012:

Jebel Ali Free Zone FZE ("JAFZ") announced today it has successfully priced yesterday the issuance of US$ 650 million Sukuk Certificates ('the Sukuk') due 2019, marking the company's first US dollar-denominated issuance and its first transaction in the international debt capital markets since 2007. The certificates pay a profit rate to investors of 7.0% per annum. The proceeds of the Sukuk will be used to partly refinance JAFZ's outstanding AED 7.5 billion Sukuk due November 2012, ahead of the stated maturity. JAFZ will also contribute proceeds of AED 4.4 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. European investors accounted for 26% of the allocation, Asian accounts 7%, US Offshore investors 2% and Middle Eastern investors took up the balance of 65%.

Salma Ali Saif Bin Hareb, CEO of JAFZ commented "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 JAFZ's strategy is especially encouraging."


For more information please contact:
John Hobday
M +971 (0) 50 464 8706

© Press Release 2012


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