Jebel Ali Free Zone FZE, a business park operator in Dubai, plans to raise a combined $1.85 billion from a bank facility and the sale of Islamic bonds to help refinance its 7.5 billion-dirham ($2 billion) debt maturing in November, according to three people familiar with the matter.
The company, controlled by Dubai’s government, plans to raise $1.2 billion from a bank facility and $650 million from sukuk sale, said the people, who declined to be identified because the matter is private. It may also use $190 million from internally generated cash to refinance the debt, they said. The planned Islamic bonds may mature in 2019, said two other people.
Dubai, home to the world’s tallest skyscraper, incurred $113 billion of debt seeking to transform itself into a tourism and commercial hub, with $15 billion maturing this year, according to International Monetary Fund estimates. Jebel Ali Free Zone said on May 27 it received approval from a majority of sukuk holders to redeem the trust certificates ahead of their maturity.
The company mandated Abu Dhabi Commercial Bank PJSC, Abu Dhabi Islamic Bank PJSC, Citigroup Inc., Dubai Islamic Bank PJSC, Emirates NBD PJSC, National Bank of Abu Dhabi PJSC and Standard Chartered Plc to arrange investor meetings in Asia, Europe and the Middle East from June 5 ahead of a possible sukuk sale, a banker familiar with the knowledge said June 1. Jebel Ali Free Zone had its ratings placed on review for upgrade at Moody’s Investors Service this week.
The floating-rate Islamic notes traded at 98.92 fils to the dirham at 12:09 p.m. in Dubai, according to data compiled by Bloomberg.
A spokesman for the company declined to comment when contacted by telephone today.
To contact the reporters on this story: Dana El Baltaji in Dubai at firstname.lastname@example.org; Arif Sharif in Dubai at email@example.com
To contact the editor responsible for this story: Claudia Maedler at firstname.lastname@example.org