DIFC Investments on Monday announced it has signed a $1.04 billion loan to repay Sukuk, maturing on June 13, according to the company.
This is a landmark transaction in the history of the DIFC, which further evidences the commitment of Dubai to meet its obligations in a timely manner.
DIFCI’s bond maturing this month was seen as one of the most challenging maturity for Dubai in 2012 and a timely repayment will help boost credibility among investors.
“….. This successful financing has been achieved on competitive terms and provides further recognition of the strength of the DIFC as an international financial centre,” DIFC governor and DIFCI chairman Abdullah Saleh said in a statement.
The transaction is a dual tranche Islamic facility and includes both Commodity Murabaha and Ijarah tranches. The mandated lead arrangers and bookrunners of the $1.035 billion dual tranche five – year Islamic Facility are Emirates NBD, Standard Chartered Ban, Dubai Islamic Bank and Noor Islamic Bank.
The presence of regional and international banks in the transaction is an indication of the confidence and support that key stakeholders have in the success of the DIFC, Saleh said. The facility is priced at 380 bps over EIBOR/Libor and is principally secured on DIFCI’s Grade A property portfolio, which is regarded as the region’s premier financial district. National and international banks participated in the transaction. Moelis & Co acted as financial advisors to DIFCI. “This transaction reaffirms the commitment of the participating financial institutions to Dubai and its Government Related Entities (GREs). It reflects on the long term confidence in the core model and future sustainability of the DIFC,” DIFCI managing director Shahli Akram said.
Akram believes the transaction sets a new benchmark in terms of size and price for Dubai GREs and its ability to tap into various funding channels to support its changing needs.
DIFCI declared a net profit of $130.5 million last year, compared with a net loss of $272 million in the previous year.