PHOTO
Long-term attributes of Islamic finance ideally suited to water industry development
Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE and Metito, the leading provider of intelligent water management solutions in the emerging markets, have recently signed a 10-year Islamic financing agreement for AED 240 million. This is Metito's first Islamic finance agreement and DIB's debut partnership with a private company working in the water and wastewater industry.
The transaction is another step in expanding Islamic finance into sectors and institutions previously catered to by the conventional form of banking. DIB is successfully advocating the agenda of making Islamic finance a norm in the global banking industry and this deal is a testament to the visionary leadership and the meticulously crafted strategic agenda of the largest Islamic bank in the country.
Commenting on the agreement, Dr. Adnan Chilwan, Group CEO of Dubai Islamic Bank, said: "Clearly the region, and in particular, the UAE is witnessing renewed economic momentum with infrastructure development attracting local and international investors. In our view, primary infrastructure development projects are the cornerstone of sustainable growth, a key element of the strategy of the country. DIB has always played a pivotal role in leading and facilitating such transactions and is linked to many landmark deals with some of the top corporates across the UAE and beyond. Metito's business model and their long-term strategic vision, ties in well with DIB's own growth plans, and further solidifies our position as a bank of choice in this sector."
The long-term attributes of Islamic finance also makes it ideally suited for the sustainable nature of the water sector, with many projects lasting decades and requiring on-going finance at competitive rates.
Commenting on the partnership, Mutaz Ghandour, Chairman and CEO, Metito, said: "I am very pleased to have DIB as our first Islamic finance partner. DIB is an innovator in its field - just like Metito is in its sector, making this transaction, and this partnership ideal. The water sector is very cost intensive, and the term length of the projects generally can be prohibitive for many financers, but, by approaching the deal with an innovative and solution-focused mindset, DIB turned this challenge into an opportunity.
"This clarity of vision allowed Metito to embrace Islamic finance - for the very first time - and to root for it within the water and wastewater sector through promoting DIB in the markets where we already have local presence and the bank sees potential," he added.
Synergy Consulting, Latham & Watkins, and Morgan, Lewis & Bockius LLP have all played a role in making this transaction possible and finalised in a record time.
Commenting on the transaction, Anand Rohatgi, Senior Vice President, Synergy Consulting, said: "We are pleased to act as the financial and transaction advisor for this landmark transaction. Metito's significant experience in the water sector, DIB's clear understanding of Islamic financing and project's operating track record were the key drivers for the successful closure of the transaction. The transaction also provides opportunity for Metito and DIB to build on and further strengthen their relationship by partnering in other geographies that are in line with their growth plans."
The value of assets belonging to Islamic finance is forecast to increase by 80 percent to reach US$3.24 trillion by 2020 according to the Dubai Islamic Economy Development Centre (DIEDC) and Thomson Reuters State of Global Islamic Economy (SGIE) report and landmark deals such as this one are critical in supporting the leadership's agenda of establishing Dubai as the global capital of Islamic economy.
-Ends-
About Dubai Islamic Bank:
Dubai Islamic Bank (DIB), established in 1975, is the first Islamic bank to have incorporated the principles of Islam in all its practices and is the largest Islamic bank in the UAE. DIB is a public joint stock company, and its shares are listed on the Dubai Financial Market. The bank enjoys a reputation as a leader and innovator in maintaining the quality, flexibility and accessibility of its products and services. The bank currently operates 90 branches in the UAE.
DIB has been proactive in creating partnerships and alliances at both the local and international level. The bank has established DIB Pakistan Limited, a wholly owned subsidiary which has a network of more than 175 branches across 56 major cities in Pakistan. DIB has also started operations in Jordan, with the establishment of Jordan Dubai Islamic Bank, and in 2015, it received regulatory approval to increase its shareholding in PT Bank Panin Syariah in Indonesia to 40 percent.
Alongside its accomplishments as a commercial organisation, DIB has always recognised its wider role in society. The bank supports the communities in which it operates through the DIB Foundation, a non-profit social, humanitarian and charitable organisation which distributes millions of dirhams to good causes at home and abroad each year.
For its contribution to both the banking industry and the wider community, DIB has earned the respect of its peers around the world. The bank's leading position has been reaffirmed by more than 165 local, regional and international accolades that it has won since 2004. DIB has won awards across diversified areas, including retail, corporate and investment banking, as well as CSR and consultancy services. Dubai Islamic Bank has been also declared the winner of the "Best Islamic Bank, UAE - 2014" by World Finance - Islamic Finance Awards 2014. DIB's notable recognitions recently included being named the "Best Regional Commercial Bank - Middle East" at the Islamic Business & Finance Awards , winning five accolades at the Banker Middle East Industry Awards 2015 as the "Best Islamic Bank"; "Best Sukuk Arranger"; "Best Islamic Retail Bank", "Best Premium Bank - UAE" and "Best Investment Bank". DIB was also recognised for its retail banking services at the Banker Middle East Product Awards 2015, where it won the accolades for "Best Islamic Card" and "Best GCC Equity Fund", as well as being chosen as the "Islamic Bank of the Year -UAE" and "Most Established Bank of the Year - UAE" at 2015 Business Excellence Awards for the second consecutive year. Earlier this year, the bank has been recognised for its expertise in arranging complex deals, winning accolades for "Murdarbah Deal of the Year"; "Ijarah Deal of the Year"; and "Pakistan Deal of the Year" at the Islamic Finance News Deal of the Year Awards 2015.
For further information, please contact:
Nadine Mazraani / Kanishk Mishra
Edelman DABO
Dubai, UAE
Tel: +9714-237-8000
Email: nadine.m@daboandco.com / kanishk.m@daboandco.com
About Metito
Metito is the leader and provider of choice for total intelligent water management solutions in the emerging markets with operations covering three business areas: design and build, specialty chemicals, and utilities. With over fifty years of operational experience, the group provides customized, comprehensive and advanced solutions across the full spectrum of its industry, from clean to dirty water.
With a mission to sustain the world's water resources, Metito provides effective water management and treatment systems that can reconcile the ever growing water demand and the dwindling natural resources. Committed to a cleaner environment, Metito endeavours to utilise its world-class global knowhow to provide millions of people across the globe access to clean and safe water.
Metito is at the forefront of the water and wastewater industry with a current global project portfolio in excess of US$ 1 billion and over 2200 employees across its worldwide operations.
© Press Release 2015
