The financing deal with EIB will provide funding for some of the ambitious projects Tamweel has in the pipeline. (Mustafa Kasmi)
Tamweel, the largest mortgage finance firm in the UAE, has signed a Dh1.7 billion ($463 million) financing agreement with Emirates Islamic Bank (EIB).
This deal is considered the largest bilateral financing arrangement ever sanctioned in the UAE.
Earlier Tamweel had announced the closure of a Dh772m asset-backed securitisation issue, which was placed primarily with European investors.
Tamweel has been assigned an A3/P2 rating by Moody’s Investor Services, reflecting the company’s strong market position and its stable outlook.
The facility, provided under an innovative Shariah-compliant structure (Wakala bil Istithmar), will be used to fund Tamweel’s growth opportunity plans.
The financing agreement has been fully vetted by the Sharia Supervisory Boards of Tamweel and EIB.
“Tamweel is in the midst of an extremely exciting period of organic growth and expansion, both here in the UAE and across the wider region,” Tamweel CEO Adel Al Shirawi said.
“This financing agreement with Emirates Islamic Bank, following our recent securitisation issue, provides us with an even more diversified source of financial funding to realise the many ambitious projects that are currently under way, which reflects positive growth in term for the company.”
Tamweel’s net profits in the first nine months of 2007 touched Dh244m, an increase of 147 per cent compared to Dh99m in the first three quarters of 2006.
Income from Islamic financing and investing assets in the third quarter of 2007 rose to Dh213m, an increase of 97 per cent compared with Dh108m in the third quarter of 2006.