Dubai: Lulu Group International, which operates one of the Middle East’s largest hypermarket chains, is raising Dh10 billion ($2.72 billion) to refinance debt ahead of a potential initial public offering, people familiar with the matter said.
The conglomerate is borrowing the funds from Abu Dhabi Commercial Bank, Dubai Islamic Bank, Emirates NBD Bank and Mashreq Bank, the people said, asking not to be identified discussing confidential information. The loans have an average maturity of 10 years, they said.
Abu Dhabi-based Lulu is realigning its capital structure before a possible listing in 2024 after delaying those plans this year, the people said. It is working with Moelis & Co. on the plans, the people said.
"We are pleased to secure this substantial syndicated loan, which underscores the confidence our financial partners have in our vision and strategy. This injection of funds will empower us to pay off existing debts, further extend our footprint with 80 new hypermarkets across the GCC, Egypt and beyond, enhance supply chain networks and ecommerce capabilities which will contribute positively to the economies in which we operate," a Lulu Group spokesperson said.
“Lulu Group's commitment to delivering exceptional value to its customers remains unwavering. With a reputation built on quality, innovation, and customer-centricity, the company is poised to capitalize on emerging opportunities and elevate its global presence to new heights with our IPO plans.”
Representatives for ADCB, ENBD and Mashreq declined to comment. DIB didn’t respond to requests for comments.
The firm founded by Indian entrepreneur Yusuff Ali in the early 1990s during a years-long oil boom in the Gulf region. It had an annual revenue of about $8 billion and employs more than 65,000 people and in 23 countries across the Middle East, Asia, the US, and Europe, according to its website.
