Bloomberg News

Jebel Ali Free Zone Said to Plan $900 Million Loan to Repay Bond

March 28, 2012

Jebel Ali Free Zone FZE, a business park operator in Dubai, plans to raise a $900 million syndicated loan to help repay a 7.5 billion-dirham ($2 billion) Islamic bond maturing in November, a banker familiar with the plan said.

The company expects to sell a $500 million sukuk, raise at least $200 million from the sale of its U.K.-based Gazeley Ltd. unit and pay the remaining with its own cash, the banker said, declining to be identified because the information is private. A spokesman for Jebel Ali, who did not wish to be identified because of company policy, declined to comment. Reuters reported the story earlier today.

Jebel Ali Free Zone hired Citigroup Inc. to find a buyer for its U.K warehouse unit Gazeley, a person familiar with the deal said Feb. 27. The state-controlled company began discussions with Dubai Islamic Bank PJSC (DIB), National Bank of Abu Dhabi PJSC and Standard Chartered Plc (STAN) to raise about half the 7.5 billion dirhams it needs to repay in a loan, two people familiar with the matter said Feb. 7.

To contact the reporter on this story: Arif Sharif in Dubai at asharif2@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net


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