Jun 13 2012
|more articles from|
JAFZ Successfully Issues US$ 650 million Sukuk due 2019
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
commented "The success of this transaction is a testament to the confidence that investors have in the
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
's refinancing and deleveraging strategy and the positive response from the market to the transaction and
's strategy is especially encouraging."
For more information please contact:
M +971 (0) 50 464 8706
© Copyright Zawya. All Rights Reserved.