Tamweel closes Dh1.1b sukuk issue

Dubai: Real estate finance company Tamweel said that its Dh1.1 billion sukuk issue was closed.

The sukuk has a tenor of five years and is scheduled to mature in 2013. The proceeds from the issue will be used for Tamweel's growth.

The sukuk received a rating of A3 by Moody's Investors Service and A by Fitch Ratings Limited.

"Following the successful closure of our benchmark-sized convertible sukuk earlier this year, this latest issue marks another innovative financing solution, which has met with a great response from the investment community," said Wasim Saifi, Group CEO of Tamweel.

The company said the issue received strong investor response to Tamweel's fund-raising exercise despite difficult credit conditions in other important markets reinforces the company's sound fundamentals and the confidence in the growth of the Emirates' economy, as a whole.

"The success of this transaction shows the strength of Tamweel's brand in the investment community. We have seen strong interest to subscribe from Islamic institutions, banks, asset management companies and high net worth individuals for this transaction," said Gaurav Agarwal, group chief financial officer of Tamweel.