A Bond Management Agreement was signed on June 9th, 2004 between Zara Investment (Holding) Co. Ltd. ("ZARA") and Atlas Investment Group ("Atlas"), the investment banking arm of Arab Bank, at ZARA's headquarters in Amman.
Under the terms of the agreement, Atlas will structure and distribute a JD45 million bond and Atlas' parent company, Arab Bank, will underwrite the full amount of the bond issue.
Inspired by the growth potential of Jordan's tourism industry, Zara Investment (Holding) Co. Ltd. was founded in 1994 by a group of independent investors, banks and investment companies. Today, ZARA is Jordan's largest tourism investment company with a total capital of JD125 million, majority ownership in seventeen companies, and a minority holding in a significant number of other tourism-related ventures. ZARA owns six 5-star hotels in different areas of the country, comprising a total of 1,705 rooms and representing around 30% of the total available 5-star hotel rooms in Jordan. ZARA hotels are operated by an elite group of global hotel management companies, including Hyatt, Movenpick and Intercontinental.
The Arab Bank Group, with total assets exceeding US$25 billion, is the oldest Arab banking institution. The Arab Bank today has a worldwide, diversified network, through a presence in virtually every Arab country and a global network of more than 400 branches and offices in five continents. Atlas is a leading investment banking firm, offering comprehensive and integrated investment banking services including corporate finance, asset management, brokerage and research. Atlas' team has a long track record in advisory services, private placements, bond issues, Initial Public Offerings, and mergers and acquisitions.
Mr. Saleh Al-Refai, General Manager of ZARA said, "The main objective of this bond issue is to take advantage of the current interest rate environment to refinance part of ZARA's existing indebtedness, allowing the company to reduce its interest burden and increase its financial flexibility". Mr. Refai noted that ZARA's operating revenues are up around 80% compared to the same period last year due to a significant improvement in Jordan's tourism industry.
Mr. Omar Masri, Global Head of Investment Banking at the Arab Bank and the Managing Director of Atlas Investment Group said: "This transaction further solidifies the historical relationship between Arab Bank and ZARA. As the investment banking arm of the Arab Bank, Atlas is looking forward to further providing creative and customized capital markets and advisory solutions to its clients in Jordan and the region".
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© Press Release 2005
