Monday, Feb 18, 2013
DUBAI (Zawya Dow Jones)--Dubai Investments (DIC.DFM), a holding company with interests in real estate, manufacturing and financial services, is preparing to launch an Islamic bond worth up to 1 billion U.A.E. dirhams ($272.5 million), its chief executive said Monday.
The sukuk, which comes amid a period of high demand and a flurry of bond sales in the region, is to be launched by the end of April in the name of Dubai Investments Park, a major real estate development Dubai Investments owns on Dubai's outskirts, Khalid Bin Kalban said. The proceeds will be used for expansion and to repay existing liabilities.
Mr. Kalban said he expected the debt to attract strong interest. "All in all costs should be below 5%," he said. The sukuk would have a bullet maturity in five years, he said.
A roadshow is expected to take place within a month in Europe and other international markets, he added. The company expects to appoint a financial advisor this week.
As it raises its bond, Mr. Kalban said he expected a positive year ahead.
Dubai Investments is in negotiations to sell two of its companies to international firms in the first part of the year, he said. If this year's plans are successful, he said net profit should almost triple to between AED800 and AED900 million from AED 321 million last year.
DIC shares last traded 0.1% lower at AED0.93 Monday.
Write to Asa Fitch at asa.fitch@dowjones.com
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(END) Dow Jones Newswires
18-02-13 0830GMT
