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Dubai's ICD raises Dh20.6b through financing facilities

DUBAI - Investment Corporation of Dubai (ICD), an investment arm of the Dubai government, has raised Dh20.57 billion ($5.6 billion) through conventional and Islamic financing facilities, according to Allen & Overy, the company's legal adviser.

The legal firm said in a statement on Sunday that it had advised 13 mandated lead arrangers to raise Dh13.22 billion ($3.6 billion) worth of conventional facility, a Dh5.51-billion ($1.5 billion) murabaha facility and a Dh1.84-billion ($500 million) co-ownership facility.

Murabaha is a certain kind of sale complying with the Muslim Shariah law and calls for an honest declaration of the cost of the commodities to be sold. It is one of the three types of bayu-al-amanah (fiduciary sale), the two others being Tawliyah (sale at cost) and Wadiah (sale at specified loss).

Two weeks ago two Gulf Arab sovereign wealth funds were reported to be looking to borrow up to Dh23.88 billion ($6.5 billion) to help finance expansion.

Bahrain's Dh36.73-billion ($10 billion) investment agency Mumtalakat Holdings was seeking Dh1.84 billion to finance acquisitions while ICD had started syndication of a loan worth Dh22.04 billion ($6 billion), Reuters had said, citing bankers. ICD pools some of Dubai's biggest firms.

ICD's loan would include two Islamic tranches of Dh5.51-7.35 billion ($1.5-2 billion), the report added, stressing that the loan would be used for general corporate activity, citing last month's interview.

jose@khaleejtimes.com