Dubai Group, the leading diversified financial services company of Dubai Holding, has successfully closed the largest ever multicurrency syndicated commodity Murabaha transaction in the UAE. The US$1.5 billion facility was arranged for Dubai Financial Group, the financial holding company of Dubai Group, to explore new growth opportunities, support current investments, and refinance existing debt.
With Noor Islamic Bank in the lead to arrange the underwriting group, Dubai Financial Group mandated Al Hilal Bank, al khaliji, First Gulf Bank, The Royal Bank of Scotland, Standard Bank and Noor Islamic Bank to arrange and syndicate the three year commodity Murabaha facility.
The transaction was launched at US$1,500,000,000 and achieved a solid oversubscription at close. A total of 24 banks from across the Middle East, Europe and Asia participated in the multicurrency syndication. The profit rate for the transaction is 200 basis points per annum over the applicable benchmark with a three-year maturity period. Noor Islamic Bank also acted as the sole Shariah advisor and investment agent for the Facility.
Soud Ba’alawy, Executive Chairman, Dubai Group said: “This syndication demonstrates the confidence of regional and global banks in the Dubai model. Dubai Group remains committed to developing the region’s financial services sector in line with international best practice and corporate governance. The participation of some of the most well known and leading names in the banking sector endorses the strong economic fundamentals and reputation of Dubai-based companies in the global financial landscape.”
Sayanta Basu, CEO, Dubai Financial Group said: "We are very pleased with the outcome of this syndication, which attests not only to Dubai Financial Group's sound financial track record and growth performance, but also to the strength of our corporate strategy and business model. This syndication will allow us to further explore opportunities for strategic partnerships across the region, as well as augment our existing portfolio of international investments."
Speaking on behalf of the syndicate banks, Hussain Al Qemzi, CEO, Noor Islamic Bank said: "The overwhelming success of this syndication among regional and international institutions is evidence of the strong reputation Dubai enjoys in the international financial community. This transaction also reaffirms the important role Islamic finance plays in debt capital markets by providing versatile Sharia'a-compliant structures for conventional and Islamic investors alike."
Dubai Financial Group has built up strategic stakes in a diversified group of leading financial institutions across the MENA region and South Eastern Europe, focusing on banking, consumer finance and financial exchanges.