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ICD overcomes market conditions to raise $5.6 billion with conventional and Islamic finance

Allen & Overy said that it has advised 13 mandated lead arrangers (MLAs) to raise $5.6 billion for Investment Corporation of Dubai ('ICD' - the investment arm of the Government of Dubai). This includes the signing of a $3.6 billion conventional facility, a $1.5 billion murabaha facility and a $500 million co-ownership facility - marking the debut in bank financing for ICD.

  • Staff Report
  • Published: 23:28 August 24, 2008
  • Gulf News

Dubai: Allen & Overy said that it has advised 13 mandated lead arrangers (MLAs) to raise $5.6 billion for Investment Corporation of Dubai ('ICD' - the investment arm of the Government of Dubai). This includes the signing of a $3.6 billion conventional facility, a $1.5 billion murabaha facility and a $500 million co-ownership facility - marking the debut in bank financing for ICD.

The transaction signifies the growing trend of utilising both conventional and Islamic tranches for debt financings in the Middle East region.

The MLAs on the conventional facility included Barclays Capital, Citibank N.A., Deutsche Bank AG, Emirates Bank International PJSC, HSBC Middle East, J.P. Morgan Plc, Mashreqbank PSC, Morgan Stanley Bank International Limited, The Royal Bank of Scotland plc and UBS Limited while Dubai Bank, Noor Islamic Bank PJSC and Standard Chartered Bank were the MLAs that had arranged the murabaha facility.

Allen & Overy banking consultant Shehzaad Sacranie commented: "Once again the market has shown tremendous confidence in Dubai. It is a significant achievement for the Investment Corporation of Dubai to have raised facilities of this size given current market conditions."

Allen & Overy banking senior associate Amar Meher added: "The deal represents the increasing trend of deals being structured with conventional and Islamic tranches. In particular, it showcases the potential of Islamic institutions to help address the liquidity gap in the current market conditions."

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