Tuesday, Jun 26, 2012
DUBAI (Zawya Dow Jones)--Dubai-based mortgage provider Tamweel's (TAMWEEL.DFM) asset-backed $235 million Islamic bond, or sukuk, will likely be priced around 335-345 basis points over one-month London interbank offered rate, or Libor, a banker aware of the planned transaction said Tuesday.
Tamweel's floating-rate certificates are set to mature in 2046, but can be called back in July 2017, the banker, who declined to be identified, told Zawya Dow Jones.
The regulation S transaction, backed by the company's mortgage book, is being arranged by UBS investment bank, while UBS, Abu Dhabi Commercial Bank, Emirates NBD are the joint lead managers and book runners. The issue comes after Tamweel met with investors in the Middle East, Asia and Europe.
The securitization is the first of its kind in the Arab Gulf since the onset of the financial crisis, ratings agency Moody's Investors Service said last week. The last time a Gulf company carried out a mortgage securitization was in 2007, when Tamweel closed a $210 million deal similar to the current one.
Tamweel had an Islamic home financing portfolio worth $2.53 billion at the end of last year, Moody's said, while assigning the sukuk a provisional "Aa3" rating.
-By Nikhil Lohade, Dow Jones Newswires; +9714 446-1694; nikhil.lohade@dowjones.com; Twitter: @ZDJnews
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
26-06-12 1222GMT
