Amlak Sukuk receives Dh734m subscription

DUBAI — Amlak Finance PJSC announced yesterday that its debut Islamic Sukuk issue has received subscription of $200 million (Dh734 million) from investors in the UAE and GCC.

By A Staff Reporter

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Published: Tue 19 Jul 2005, 11:03 AM

Last updated: Thu 2 Apr 2015, 4:43 PM

The issue will be a Floating Rate Note (FRN) with a tenure of 5 years and will pay a return to investors of 120 basis points over 6 months Libor. The issue will be listed on the Dubai Financial Market.

Mohammed Al Hashimi, CEO of Amlak, said: "We are very pleased with the response to the Sukuk. The success of the issue is evidence of the trust that investors have in Amlak Finance. Our strong track record as the UAE's leading home finance provider and our solid financial results have significantly contributed to the issue's overwhelming response."

The proceeds of the Sukuk will be used for general working capital purposes and to fund Amlak's growing real estate portfolio. HSBC Amanah and Emirates Islamic Bank were the joint lead managers for the Sukuk. HSBC Amanah was the sole book runner for the US dollar denominated issue. The size and pricing of the issue was finalised as a consequence of a book-building exercise undertaken alongside a series of roadshows in Dubai and Bahrain where senior company officials made presentations to investors.

Al Hashimi added that the capital raised through the Sukuk will give Amlak additional funding capabilities that help to meet the demand of medium and long-term borrowers in the UAE's home finance markets. He said that Amlak will continue to develop and provide more efficient Shariah compliant products to its customers in the coming months.

Abdulla Shuwaiter of Emirates Islamic Bank, said: "We are pleased to be involved with the Sukuk and we congratulate Amlak Finance for their vision with this issue as a source of raising finance"

Mohammed Dawood of HSBC Amanah, said: "We are delighted to have been the joint lead manager and book runner to the Sukuk. The response from the investors is yet another indication that strong issuers like Amlak Finance will always find solid support from investors in the region."

On the other hand, Amlak Finance PJSC has announced the specifics of the Extraordinary General Meeting (EGM) to discuss the proposed plans to double their capital as announced by Mohammed Ali Alabbar, chairman of Amlak in early June.

The EGM, will discuss the items of interest. Firstly, to approve doubling the capital from Dh750 million to Dh1.5 billion, by issuing 1:1 shares and to seek approval for the premium of said shares. The second order of business will be to approve the amendment of the Memorandum and Articles of Association of Amlak to reflect the new change in capital and shares if it is approved.

If the EGM falls short of the necessary quorum then another meeting will be held at the same time and venue on Saturday July 30.

The purpose of the increase in the capital is to help the company meet the demand for Islamic finance, develop comprehensive Shariah compliant products and services, and to meet the increase in demand for home finance in the country. In addition, the increase in capital will help Amlak achieve its strategic goal of diversification, enhance its investment portfolio and allow the company to take advantage of investment opportunities both locally and internationally.

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