Dubai's JAFZA gets consent to repay US$2 billion sukuk early
Source: BI-ME with Reuters , Author: Posted by BI-ME staff
Posted: Mon May 28, 2012 9:08 am

UAE. Dubai's Jebel Ali Free Zone (JAFZA) said on Sunday it had received the consent from a majority of sukukholders for early redemption of a US$2 billion-equivalent Islamic bond.

The state-linked industrial free zone, part of a unit owned by Dubai World DBWLD.UL, said a majority representing 89% of certificate holders had voted in favour of the Extraordinary Resolution in a meeting on May 24 in London.

"Accordingly the consent conditions have been satisfied and the Deed of Amendment has been executed," the statement on Nasdaq Dubai said.

In order to change any terms of the certificates, the company was legally bound to seek approval from holders.

Citigroup Inc (C.N), Dubai Islamic Bank DISB.DU and Standard Chartered (STAN.L) were appointed as solicitation agents.

The 3.01%, AED7.5 billion sukuk was originally due in November. The company announced last month it was in advanced talks with financial institutions over a financing package to meet its debt obligation.

Along with a US$1.25 billion sukuk issued by another state-owned entity, DIFC Investments, due in June, the JAFZA redemption was considered crucial to assess the ability of Dubai Inc firms to meet their debt maturities.

In March, Reuters reported the company was preparing a three-pronged approach to the refinancing, consisting of a syndicated loan, another sukuk issue, and partial cash repayment. Asset sales are also an option.

 

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INTERNATIONAL. Foreign policy is what a president wishes would happen; foreign affairs are what actually happen; the problem that Obama has, which has crippled his foreign policy, is that his principles have not been defined with enough rigor to provide definitive guidance in a crisis.
UAE. Total wealth in the GCC stood at US$ 1.7 tillion in 2014, up 4.75% from 2013; Total wealth in Saudi Arabia and UAE grew by 5%; Global household wealth up 8.3% to US$263 trillion, driven by the US and Europe, according to Credit Suisse Research Institute.
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