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25 February 2024

Sewa raises Dh1.83bn ijara loan

Sewa will utilise loan to finance its current and future projects (File)

By Staff

Sharjah Electricity & Water Authority (Sewa) has raised $500 million (Dh1.835 billion) loan through ijara facility to fund infrastructure development of the emirate.

Kuwait Finance House (KFH) and GIB Capital acted as financial advisors for the transaction, said Mazen Saad Al Nahedh, chief executive officer of KFH.

Al Nahedh said KFH’s participation of $120 million (Dh440.4 million) in this 5-year transaction is the largest participation amongst the mandated lead arrangers which include Gulf International Bank, ABC Islamic Bank, Sharjah Islamic Bank and Barwa Bank.

The transaction is guaranteed by the Government of Sharjah, the statement said, adding that Sewa will utilise the proceeds to finance its current and future projects, which includes the infrastructure and expansion plans to meet the growth needs that Sharjah is witnessing.

KFH, through its subsidiary KFH Investment Co., was also mandated as joint lead manager and bookrunner for the $1 billion debut sukuk issuance by the Government of Sharjah, which was launched in September 2014.