US$347 Million Syndicated Facility Arranged For Al Ghurair Center Llc
09 April 2009
Badr Al-Islami, the Islamic Banking Division of Mashreq, and Standard Chartered Saadiq along with Abu Dhabi Islamic Bank PJSC, Dubai Islamic Bank, Emirates NBD, First Gulf Bank, Ajman Bank and Arab African International Bank have successfully arranged a USD 347 million Dual Currency Syndicated Islamic Finance Facility for Al Ghurair Center LLC.
Mashreq and Standard Chartered Bank were the Bookrunners on this deal.. The Facility has a door to door tenor of ten years.
Proceeds of the Facility will be used to finance the expansion of Al Ghurair City, a well known mixed used (retail, commercial and residential) complex located in Dubai.
Ahmed El Sayed, Chief Financial Officer of Al Ghurair Investment commended the parties involved and stated “the strength of our group enables it to proceed with its set objectives; the expansion of Al Ghurair City is an implementation of such a strategy. We are confident that as pioneers of mixed used developments, we will continue to enhance our offerings. ”
Mubashar Khokhar, CEO of Badr Al-Islami, extended his sincere gratitude to Al-Ghurair Investment to allow Badr Al-Islami, Mashreq and Standard Chartered Bank to arrange this deal using Islamic Structure. He further highlighted on the excellent coordination shown between the bank group and the client in a tight market to bring this deal to a successful closure. The closure of the deal also highlights the return of confidence to the market despite international financial crisis. Mubashar stated “Al Ghurair Investment has an excellent track record and the expansion of existing Al Ghurair City is an important strategic initiative in their growth strategy. With new Dubai Ultra Light Rail on the way, the expanded Al Ghurair City will be easily accessible to all walks of life. The strong support by banking community for this Islamic deal is based on pure merits and would encourage others to tap into Islamic financing”.
Abbas Hasan, Head of Investment Banking, at Mashreq, while expressing his pleasure at the closing of the facility said that “the successful closure of the transaction bears testimony to the joint efforts of the Borrower and the Bookrunners in these challenging market conditions”. He further added that “while the deal was well received in the bank market, based on the underlying strength of the project, it was redeeming to see local financial institutions continuing to support businesses with a strong track-record. The expansion of Al Ghurair Center, strategically located in the heart of the Dubai and one of the city's oldest shopping landmarks, is expected to come up as a unique mixed use development based on strong demand dynamics”.
Steve Perry, Regional Head of Syndications – Standard Chartered, Hassan Jarrar, Head of Origination and Client Relationships - Standard Chartered, and Afaq Khan, CEO Standard Chartered Saadiq all extended their sincere congratulations to the Company on the successful syndication of their debut Islamic financing syndication. Mr. Jarrar said “Despite the challenging market conditions, the realisation of this transaction is yet another demonstration of the continued strong confidence in the management of the company and their further growth ambitions”. Steve Perry, the Regional Head of Syndications, MENA, Standard Chartered also echoed these sentiments and added that “The successful closure of this transaction is a clear demonstration that there is still credit appetite available for well-established and robust businesses operating with the UAE.” Afaq Khan also reiterated this point and said “The successful closure of this transaction in the current market conditions is a testament to the credit strength and reputation of Al Ghurair Group. I expect that this transaction will signal the re-start of the Islamic syndication and sukuk markets in the UAE and GCC”.
Built by the Al Ghurair family in 1978, Al Ghurair City was the first retail venue of its kind in the UAE comprising of retail shops, apartments and offices. Throughout its more than 25-year history, Al Ghurair City has acted as a pioneer in the regional retail business. Combining the culture and tradition of the city of Dubai with a modern shopping experience, it has played an integral role in providing for the shopping needs of the local population and the vast number of annual tourists.