Se­naat is­sues $300 mil­lion 7-year Sukuk

The Gulf Today - Business - - UAE -

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.”

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