Amlak Finance PJSC announced Monday that its debut Islamic Sukuk issue received subscription of US$ 200million from investors in the UAE and GCC.
The issue will be a Floating Rate Note (FRN) with a tenure of 5 years and will pay a return to investors of 120 basis points over 6 months Libor. The issue will be listed on the Dubai Financial Market.
Mohammed Al Hashimi, CEO of Amlak, said: “We are very pleased with the response to the Sukuk. The success of the issue is evidence of the trust that investors have in Amlak Finance. Our strong track record as the UAE’s leading home finance provider and our solid financial results have significantly contributed to the issue’s overwhelming response.”
The proceeds of the Sukuk will be used for general working capital purposes and to fund Amlak’s growing real estate portfolio. HSBC Amanah and Emirates Islamic Bank were the joint lead managers for the Sukuk. HSBC Amanah was the sole bookrunner for the US dollar denominated issue.
The size and pricing of the issue was finalised as a consequence of a book-building exercise undertaken alongside a series of roadshows in Dubai and Bahrain where senior company officials made presentations to investors.
Al Hashimi added that the capital raised through the Sukuk will give Amlak additional funding capabilities that help to meet the demand of medium and long-term borrowers in the UAE’s home finance markets. He said that Amlak will continue to develop and provide more efficient Shariah compliant products to its customers in the coming months.
Abdulla Shuwaiter of Emirates Islamic Bank, said: “ We are pleased to be involved with the Sukuk and we congratulate Amlak Finance for their vision with this issue as a source of raising finance”
Mohammed Dawood of HSBC Amanah, said: “ We are delighted to have been the joint lead manager and book runner to the Sukuk. The response from the investors is yet another indication that strong issuers like Amlak Finance will always find solid support from investors in the region.”