Tamweel closes Dh1.1b sukuk

DUBAI — Tamweel PJSC's Dh1.1 billion sukuk issue was successfully closed last week. The sukuk has a tenor of five years and is scheduled to mature in 2013. The proceeds from the issue will be used for Tamweel's future growth, the company said in a Press statment yesterday. Validating Tamweel's strong financials and innovative investment structure, the Sukuk has received a rating of A3 by Moody's Investors Service and A by Fitch Ratings Limited.

By A Staff Reporter

Published: Tue 29 Jul 2008, 11:14 PM

Last updated: Sun 5 Apr 2015, 1:00 PM

The Sukuk structure has been approved by Tamweel's Shariah board. Wasim Saifi, Group Chief Executive Officer of Tamweel, said: "Following the successful closure of our benchmark-sized convertible Sukuk earlier this year, this latest issue marks another innovative financing solution which has met with a great response from the investment community. We were confident of the success of the transaction but we are pleasantly surprised by the market's interest in the issue across the board. The strong investor response to Tamweel's fund-raising exercise despite difficult credit conditions in other important markets reinforces the company's sound fundamentals and the confidence in the growth of the Emirates' economy, as a whole. The funds raised from the issue will further support Tamweel's rapidly growing real estate finance business, providing better and more cost-efficient funding mechanisms."

Gaurav Agarwal, Group Chief Financial Officer of Tamweel said: "The success of this transaction shows the strength of Tamweel's brand in the investment community. We have seen strong interest to subscribe from Islamic institutions, banks, asset management companies and high net worth individuals for this transaction."

Tamweel achieved 259 per cent growth in net profits for the first half of 2008, reaching Dh387.3 million, compared to Dh 108.03 million for the first half of 2007.

Net profits for the second quarter of 2008 touched Dh 210.95 million, an increase of 266 per cent from Dh 57.56 million achieved in the second quarter of 2007.

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