Leading real estate finance provider Tamweel has submitted an application to list its $300 million (Dh1.1 billion) exchangeable sukuk on the Dubai International Financial Exchange (DIFX).
Tamweel shares are listed and traded on the Dubai Financial Market.
The company announced that its $300m exchangeable sukuk issue, whose order book was oversubscribed within hours of announcing the launch, was successfully closed on January 23.
The sukuk will carry a sub-libor profit rate of 4.31 per cent, payable quarterly in arrears, and the exchange price is $2.2711. This represents a premium in excess of 30 per cent over the past three-month volume weighted average market price of the Tamweel share price. The price indicates a premium of 21 per cent to the closing price of the Tamweel shares on December 13. This Shariah-compliant bond is scheduled to mature in 2013 and the proceeds will be used by Tamweel for general funding and expansion needs.
Adel Al Shirawi, Tamweel CEO, said: “We are delighted to announce the successful closure of Tamweel’s exchangeable sukuk, which has been placed with both regional and foreign investors. Issued in the midst of difficult market conditions, the sukuk was oversubscribed within hours of launch. This success is a testimony to Tamweel’s strong business fundamentals, strategies and investor confidence.”
The sukuk was issued by Tamweel Funding Ltd, a special-purpose vehicle established in Jersey, UK.
Tamweel seeks DIFX sukuk listing