Badr Al-Islami, the Islamic Banking Division of Mashreq, and Standard Chartered Saadiq along with Abu Dhabi Islamic Bank PJSC, Dubai Islamic Bank, Emirates NBD, First Gulf Bank, Ajman Bank and Arab African International Bank have successfully arranged a USD 347 million Dual Currency Syndicated Islamic Finance Facility for Al Ghurair Center LLC.
Mashreq and Standard Chartered Bank were the Bookrunners on this deal.. The Facility has a door to door tenor of ten years.
Proceeds of the Facility will be used to finance the expansion of Al Ghurair City, a well known mixed used (retail, commercial and residential) complex located in Dubai.
Ahmed El Sayed, Chief Financial Officer of Al Ghurair Investment commended the parties involved and stated "the strength of our group enables it to proceed with its set objectives; the expansion of Al Ghurair City is an implementation of such a strategy. We are confident that as pioneers of mixed used developments, we will continue to enhance our offerings. "
Mubashar Khokhar, CEO of Badr Al-Islami, extended his sincere gratitude to Al-Ghurair Investment to allow Badr Al-Islami, Mashreq and Standard Chartered Bank to arrange this deal using Islamic Structure. He further highlighted on the excellent coordination shown between the bank group and the client in a tight market to bring this deal to a successful closure. The closure of the deal also highlights the return of confidence to the market despite international financial crisis. Mubashar stated "Al Ghurair Investment has an excellent track record and the expansion of existing Al Ghurair City is an important strategic initiative in their growth strategy. With new Dubai Ultra Light Rail on the way, the expanded Al Ghurair City will be easily accessible to all walks of life. The strong support by banking community for this Islamic deal is based on pure merits and would encourage others to tap into Islamic financing".
Abbas Hasan, Head of Investment Banking, at Mashreq, while expressing his pleasure at the closing of the facility said that "the successful closure of the transaction bears testimony to the joint efforts of the Borrower and the Bookrunners in these challenging market conditions". He further added that "while the deal was well received in the bank market, based on the underlying strength of the project, it was redeeming to see local financial institutions continuing to support businesses with a strong track-record. The expansion of Al Ghurair Center, strategically located in the heart of the Dubai and one of the city's oldest shopping landmarks, is expected to come up as a unique mixed use development based on strong demand dynamics".
Steve Perry, Regional Head of Syndications - Standard Chartered, Hassan Jarrar, Head of Origination and Client Relationships - Standard Chartered, and Afaq Khan, CEO Standard Chartered Saadiq all extended their sincere congratulations to the Company on the successful syndication of their debut Islamic financing syndication. Mr. Jarrar said "Despite the challenging market conditions, the realisation of this transaction is yet another demonstration of the continued strong confidence in the management of the company and their further growth ambitions". Steve Perry, the Regional Head of Syndications, MENA, Standard Chartered also echoed these sentiments and added that "The successful closure of this transaction is a clear demonstration that there is still credit appetite available for well-established and robust businesses operating with the UAE." Afaq Khan also reiterated this point and said "The successful closure of this transaction in the current market conditions is a testament to the credit strength and reputation of Al Ghurair Group. I expect that this transaction will signal the re-start of the Islamic syndication and sukuk markets in the UAE and GCC".
Built by the Al Ghurair family in 1978, Al Ghurair City was the first retail venue of its kind in the UAE comprising of retail shops, apartments and offices. Throughout its more than 25-year history, Al Ghurair City has acted as a pioneer in the regional retail business. Combining the culture and tradition of the city of Dubai with a modern shopping experience, it has played an integral role in providing for the shopping needs of the local population and the vast number of annual tourists.
-Ends-
About Mashreq
Mashreq is the largest private bank in the UAE and also the second oldest. Founded in 1967 as Bank of Oman, the bank has played a pioneering role in the industry, particularly in retail banking. Among its many firsts it was the first to launch such products as travelers' cheques, credit cards and ATMs.
It is invariably among the highest performing banks in the region. This year it recorded a Net Profit of over AED 1.6 billion. Total Assets stood at AED 93 billion.
Mashreq has received numerous international awards, particularly for quality management. According to independent research it has more ISO certifications than any bank in the region by a wide margin. It's most recent acknowledgement was the Best Bank in the UAE 2008, from Euromoney.
As a leading financial Institution in the UAE Mashreq aims to be world class in every facet of its business, including its social responsibility to the community it serves. Towards this goal the bank pays particular attention to recruiting, training, developing and retaining UAE National employees.
Badr-Al Islami
Badr Al-Islami is Mashreq's Islamic Banking initiative and it started with the establishment of Badr Al-Islami Banking in early 2006. Badr Al-Islami Finance was formed in 2007 with Mashreq investing AED 500 million in the equity of the finance company. The company is subject to the supervision of UAE Central Bank and an independent accounting firm, as well as, the Shariah Supervisory Board
Badr Al-Islami is an independently managed business comprising Badr Al-Islami Finance and Badr Al-Islami Banking.Badr Al-Islami Finance, which is majority owned by Mashreq, is a private joint stock Islamic Finance Company and Badr-Al Islami Banking is the Islamic Banking Division of Mashreq.
Badr Al-Islami is committed to the framework and values of Shariah. Our wide range of Shariah Compliant products and services covers the spectrum of financialservices including retail, wholesale and investments.
For more information, please visit: www.badralislami.com
Standard Chartered - leading the way in Asia, Africa and the Middle EastStandard Chartered PLC, listed on both London and Hong Kong stock exchanges, ranks among the top 25 companies in the FTSE-100 by market capitalisation. The London-headquartered Group has operated for over 150 years in some of the world's most dynamic markets, leading the way in Asia, Africa and the Middle East.Itsincome and profits have more than doubled over the last five years primarilyas a result of organic growth and supplemented by acquisitions.
Standard Chartered aspires to be the best international bank for its customers across its markets. The Bank derives more than 90 per cent of its operating income and profits from Asia,Africa and the Middle East, generated from its Wholesale and Consumer Banking businesses. The Group has around1,750 branches and outlets located in over 70 countries. The extraordinary growth of its markets and businesses creates exciting and challenging international career opportunities.
Leading by example to be the right partner forits stakeholders, the Group is committed to building a sustainable business over the long term and is trusted worldwide for upholding high standards of corporate governance, social responsibility, environmental protection and employee diversity. It employs 75,000 people, nearly half of who are women. The Group's employees are of 115 nationalities, of which 60 are represented among senior management.
For more information, please visit: www.standardchartered.com
For more information, contact:
Mashreq
Saad Hakim
PR Manager, Mashreq
Tel: 04 6083707
E-mail: SaadHa@mashreqbank.com
Iman Issa
Gulf Hill and Knowlton
Tel: 04 334 4930
E-mail: iman.issa@hillandknowlton.com
Standard Chartered Bank
Sam Gad
Media Relations and Communications
Standard Chartered MENA
T: +971 4 508 5916
M: +971 50 900 7141
E-mail: Sam.Gad@standardchartered.com
Lilian Yong-Babani
Regional Head Corporate Affairs
Standard Chartered MENA
Tel:+971502401273
Email : Lilian.Yong-Babani@standardchartered.com
Press Release 2009
