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Tamweel to fund expansion with Dh864m syndicated bank facility
Islamic mortgage lender Tamweel on Wednesday said it successfully closed a $235 million (Dh863.5 million) syndicated bank facility, which involved the participation of leading regional and international financial institutions, including banks based in the Far East.
- Staff Report
- Published: 00:31 April 24, 2008
Dubai: Islamic mortgage lender Tamweel on Wednesday said it successfully closed a $235 million (Dh863.5 million) syndicated bank facility, which involved the participation of leading regional and international financial institutions, including banks based in the Far East.
The facility, provided under a Sharia-compliant structure, will be used to fund Tamweel's long-term growth and aggressive business objectives.
The financing documents have been approved by Noor Islamic Bank's Sharia board and fully vetted by Tamweel's Sharia Supervisory Board.
ABN Amro and Noor Islamic Bank served as lead arrangers and joint bookrunners for the transaction, which has been priced in both dollars and dirhams, and will reach maturity in three years.
By 2011, Tamweel anticipates international operations contributing 30 per cent of total revenues.
"In this period of rapid growth of our business in the UAE and ongoing international expansion, this syndicated bank facility provides us with an even more diversified source of funding," said Wasim Saifi, chief executive of Tamweel. "As we move closer towards our goal of becoming the most admired financial services institution in the Middle East, such funding is essential to supporting Tam-weel's ambitious growth strategy."
Other financing
This landmark facility comes on the heels of Tamweel's successful closure of a $300 million (Dh1.1 billion) exchangeable sukuk issue, whose order book was oversubscribed within hours of announcing the launch, in January 2008.
This follows the company's $210 million (Dh772 million) asset-backed securitisation issue in 2007, which was placed primarily with European invest-ors.
In February, his year, Tamweel formalised its intention to launch operations in Egypt by receiving its mortgage finance licence from the Egyptian Mortgage Finance Authority. The company expects to begin operations in the North African state during the second quarter of this year.
Tamweel has already signed a joint venture agreement with Al Oula Development Company in Saudi Arabia, where the company expects to open a subsidiary later this year.
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