Business | Investment

Dubai investments to launch Dh1bn sukuk

The sukuk will be launched by the end of April 2013

  • Zawya Dow Jones
  • Published: 15:59 February 18, 2013
  • Gulf News

Dubai: Dubai Investments, a holding company with interests in real estate, manufacturing and financial services, is preparing to launch an Islamic bond worth up to Dh1 billion ($272.5 million), its chief executive said on Monday.

The sukuk, which comes amid a period of high demand and a flurry of bond sales in the region, is to be launched by the end of April in the name of Dubai Investments Park, a major real estate development Dubai Investments owns on Dubai’s outskirts, Khalid Bin Kalban said. The proceeds will be used for expansion and to repay existing liabilities.

Kalban said he expected the debt to attract strong interest. “All in all costs should be below 5 per cent,” he said. The sukuk would have a bullet maturity in five years, he said.

A roadshow is expected to take place within a month in Europe and other international markets, he added. The company expects to appoint a financial advisor this week.

As it raises its bond, Kalban said he expected a positive year ahead.

Dubai Investments is in negotiations to sell two of its companies to international firms in the first part of the year, he said. If this year’s plans are successful, he said net profit should almost triple to between Dh800 and Dh900 million from Dh321 million last year.

DIC shares last traded 0.1 per cent lower at Dh0.93 on Monday.

Gulf News
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