Joyalukkas raises Dh500 million to propel expansion

Joy Alukkas signing the financing deal with representatives of Standard Chartered Bank, Emirates NBD's Emirates Capital Ltd and Mashreq Bank.

Joyalukkas, a leading jewellery group, said on Sunday it has raised Dh500 million through multiple banking arrangements, including a Dh294-million term loan with a five-year tenor, to propel its network expansion plans.
Joy Alukkas, Chairman and Managing Director of the Dubai-based jewellery chain, said the new funding would help the group take the cost advantage of the current rate of interest.
"I believe the new bank financing is a testimony to our trust quotient among banks and financial institutions. We have been maintaining a strong financial position and good track record with everyone who deals with us. We would like to keep a very positive outlook in spite of the constantly changing market dynamics because there is always some form of opportunity," Alukkas said at a formal signing ceremony with the lenders.
The facility will help speed up the group's network expansion in Saudi Arabia and Qatar. Joyalukkas, which is currently spread across 10 countries with a chain of over 110 showrooms, also plans to make its US debut by opening jewellery outlets in the near future.
The term loan has been arranged as a club deal with three of UAE's leading banks including Standard Chartered Bank, Emirates NBD's Emirates Capital Ltd and Mashreq Bank. Hogan Lovells acted as the lenders' counsel for the deal, Alukkas said in a statement. The term loan was signed in the presence of senior executives of the participating banks, including Sunil,  Regional CEO of Standard Chartered Bank, Africa and Middle East; John Lossifidis, Mashreq Bank's Executive VP and Group Head of Corporate and Investment Banking; and Jonathan Moris, Head of Wholesale Banking, Emirates NBD. Kaushal said the facility is testament to Standard Chartered's strong relationship of over 15 years with the Group.
"We are committed to offering innovative financial solutions, catering to our clients' diverse financial needs and are confident the transaction will enhance Joyalukkas' competitiveness and financial performance in the market." Standard Chartered Bank, which is the originating, structuring and coordinating bank, was also appointed as facility and security agent for the deal.   Lossifidis said at the signing ceremony that his bank was happy to work with Joyalukkas and the other banks to achieve a successful close to this major transaction. "Despite the market challenges, this financing has been arranged to support Joyalukkas with its expansion strategy, which is testament to the valuable relationships the group has cultivated with its banking partners." Moris said the loan facility would serve to further support Joyalukkas' financial position and allow the group to capitalise on the tremendous growth opportunities facing the company.
The strategic objective for Joyalukkas to take up this facility is the opportunity to refinance and reduce its borrowing costs based on the prevailing Libor rates.
The group, one of the largest jewellery retail chains in Middle East and India, has built a strong reputation worldwide over the past 28 years. The brand caters to over 10 million customers and has a workforce of over 7,000 employees around the world. - issacjohn@khaleejtimes.com