Senaat issues $300 million 7-year Sukuk
ABU DHABI: Senaat, one of the largest industrial investment holding companies in the UAE, announced that it has successfully issued Dhs1.1 billion ($300 million) through A ixed rate senior unsecured US dollar denominated Regs sukuk with a 7 year tenor. The issue follows a series of investor meetings which took place in Europe and Asia, as well as in the United Arab Emirates.
The new sukuk, which will be dual listed on the London and Abu Dhabi Stock Exchanges, had strong investor demand both locally and internationally, enabling the issue to be 10 times oversubscribed. The sukuk was competitively priced, with A ixed Income of 4.76 per Cent per year, underpinned by moody’s “a3” which was issued last week, and fitch’s “a” credit ratings. these ratings are the irst to be assigned to senaat by moody’s and fitch and have also been assigned to the sukuk itself.
in assigning these ratings, both agencies noted senaat’s role as a main player in driving forward abu dhabi’s diversified manufacturing industry, underlining the group’s position as a key pillar in the implementation of the emirate’s 2030 economic vision. they pointed to senaat’s inancial strength, profitability and ability to self-inance its capital and operational expenditure, as well as the diversified and stable low of dividends from its portfolio companies.
Through issuing the sukuk, senaat aims to enhance its financial flexibility and ability to access capital markets. the proceeds from the sukuk issue will be allocated to refinance part of senaat’s existing group debt, to enhance the company’s overall capital structure and cash low levels.
Commenting on the sukuk, hussain jasim al nowais, chairman of senaat, said, “the issuing of senaat’s sukuk enjoyed strong demand from local and international markets, reflecting investor confidence in the emirate’s position in the global inancial markets and its economic vision 2030.”