Senaat to consider additional sukuk next year after issuance of bond worth $300m

Abu Dhabi industrial company Senaat may issue a sukuk next year after listing a $300 million Sharia-compliant bond, largely to refinance existing debt at subsidiary Emirates Steel, its chief executive said yesterday.

The $300m sukuk issued last month is part of a $3 billion trust certificate issuance programme, which Senaat may or may not consider tapping in the future.

“The structure of the deal is $3bn and we review our sources and pricing that we have in order to have a sustainable and robust financial position,” said Senaat chief executive Jamal Al Dhaheri.

“The reason behind us having the structure is there is potential [in 2019] and [will be] based on our next review. At the moment, we have different sources.”

Emirates Steel chief executive Saeed Al Remeithi said there were “strong indications” for another potential sukuk.

Senaat manages more than Dh27.2bn worth of assets for companies, including the UAE’s largest steel producer, Emirates Steel and two entities from the aluminium sector.

The holding company is mandated to execute industrial sector activity through investments in metals, oil and gas services and construction, as well as food and beverage manufacturing.

Senaat’s sukuk was raised at a profit rate of 4.76 per cent with a seven-year tenure and