Business | Banking
Tamweel's $300m exchangeable sukuk closed successfully
Real estate finance provider Tamweel announced on Saturday that its $300 million exchangeable sukuk issue, whose order book was oversubscribed within hours of announcing the launch, was successfully closed on January 23.
- Gulf News Report
- Published: 23:33 January 26, 2008
Dubai: Real estate finance provider Tamweel announced on Saturday that its $300 million exchangeable sukuk issue, whose order book was oversubscribed within hours of announcing the launch, was successfully closed on January 23.
The sukuk will carry a sub-libor profit rate of 4.31 per cent, payable quarterly in arrears, and the exchange price is $2.2711, which represents a premium of more than 30 per cent over the past three-month volume weighted average market price of the Tamweel share price.
The price also indicates a premium of 21 per cent to the closing price of the Tamweel shares on December 13. This Sharia-compliant sukuk is scheduled to mature in 2013 and the proceeds will be used by Tamweel for its funding and expansion needs.
"Tamweel's sukuk has been placed with both regional and foreign investors. Issued in the midst of difficult market conditions, the sukuk was oversubscribed within hours of launch. This success is a testimony to Tamweel's strong business fundamentals, strategies and investor confidence," said Adel Al Shirawi, chief executive of Tamweel
The sukuk has been issued by Tamweel Funding Limited, a special purpose vehicle established in Jersey, United Kingdom.
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