Business | Markets

Al Wa'ab City concludes initial closing of fund-raising exercise

Capital of 4.75b Qatari riyals will go towards financing project

  • Staff Report
  • Published: 00:04 July 10, 2008
  • Gulf News

Dubai: Al Wa'ab City Management on Wednesday said it had concluded the initial closing of its capital raising exercise that fetched 4.75 billion Qatari riyals ($1.3 billion) of capital from debt, mezzanine and equity funding sources for the 11.5 billion riyals ($3.2 billion) Al Wa'ab City project.

This financing stands out because of the capital raised in such challenging times for the financial markets. The innovation stems from a unique mezzanine financing element that has been used in the Middle East for the first time.

The company has raised 3.6 billion riyals ($1 billion) in senior debt on a fully underwritten basis, which represents almost a third of the total value of the project. The remaining two-thirds are coming from a mixture of equity and mezzanine finance.

The debt has been arranged by a combination of international banks (HSBC); regional banks (Abu Dhabi Commercial Bank, Ahli United Bank and Mashreq); and local Qatari banks (Qatar National Bank, Al Khaliji Bank and Doha Bank). The mezzanine is being raised through an investment vehicle in which Amwal, Shuaa Capital, Kaupthing and Q-Invest are the sponsors and an initial closing of 730 million riyals ($200 million) has been achieved with other investors also participating. In addition 4.4 billion riyals ($1.2 billion) of equity has also been injected from the promoters Nasser Bin Khalid Holding and other investors.

  • Rate this article
  • Average reader rating (0 votes) 5 Stars
Tools

Emailing an article to friend is a simple way to share a news item. Your friend will receive an email with your name and email address as well any personal message you choose to send.

The information you provide on this page will not be used to send unsolicited emails.

This service is not intended to encourage spam, and action may be taken against individuals who maliciously enter personal details of another individual.

Share this article

More from Markets

  1. New corporate rules to be effective from May

  2. Pakistani stocks fall on security fears

  3. Borse Dubai concludes conference

  4. Gold reverses gains as greenback recovers

All articles in Markets

More from Business

Gulf News
Popular in Business
Way to go this DSF
XPRESS

Way to go this DSF

A fun-filled route to guide you to all the happening dos in town

Business Editor's choice