Monday, Feb 19, 2007
DUBAI (Zawya Dow Jones)--U.A.E.'s real estate developer Aldar Properties said Monday it increased the size of its convertible sukuk 69% to $2.2 billion from $1.3 billion, and cut the spread on the Islamic bond to around 65 basis points over the five-year U.S. dollar mid-swap rate.
"The basic reason for raising the size of the sukuk was to meet the increased investor demand," Aldar's Chief Financial Officer Shafqat Ali Malik told Zawya Dow Jones.
"We have received phenomenal response from investors, especially from the U.A.E., Europe and Asia," he said.
Abu Dhabi-based Aldar launched the bond, scheduled to mature Nov. 10, 2011, early February to raise $1.3-billion, with an option to increase it 15% to $1.5 billion. The initial price guidance was between 75 to 125 basis points over the U.S. dollar mid-swaps.
Malik said the company will price, allocate and close the bond Tuesday.
Aldar intends to invest the money to fund its ongoing and future projects, the official added.
Barclays Capital, Credit Suisse and National Bank of Abu Dhabi were the joint global coordinators of the issue.
Aldar has applied to list the sukuk on the Professional Securities Market of the London Stock Exchange. The company's shares are listed on the Abu Dhabi Securities Market.
Sukuk comply with the Islamic Shariah law and as such pay a return based on tangible assets in lieu of an interest rate. Shariah considers payment of interest as usury.
-By Sarmad Khan, Dow Jones Newswires, +9714 227 8287; sarmad.khan@dowjones.com
Copyright (c) 2007 Dow Jones & Company, Inc.
(END) Dow Jones Newswires
19-02-07 1436GMT
