(MENAFN- Khaleej Times) Bourse hits 5100 mark; dhcog to prepay $555m; govt raises $750m from sukuk
it was a landmark day for dubai on wednesday as the emirate made significant progress on the economic front.
the dubai government successfully raised $750 million through the world’s first 15-year sukuk dubai stocks breached another psychological barrier of 5100 mark and dubai holding commercial operations group (dhcog) confirmed to prepay $555 million facility ahead of maturity.
the dfm general index rose 2.31 per cent. — kt photo by shihab
dhcog on may 13 2014 will voluntarily prepay the entire outstanding principal of $319.3 million along with accrued interest of the amortising $555 million facility originally maturing on december 31 2015 it was announced in a statement on wednesday.
the prepayment of this secured facility will be made from dhcog’s available funds it added.
the dubai government tapped capital markets for the first time in more than a year with the sukuk sale that attracted $2.3 billion of investor demand for the $750 million issue on tuesday pricing it at five per cent the tight end of initial guidance.
the government hopes its first 15-year sukuk issue will pave the way for long-term debt sales by its state companies the department of finance said on wednesday.
the well-planned and swift intra-day execution took advantage of the positive market environment to build a high-quality order book for a 15 year sukuk.
the issuance was extremely well received globally and generated a large order book with over 79 investors placing orders of over $2 billion. orders were received from a wide range of high quality fixed income investors including fund managers insurance companies and banks from a wide geographic spread across asia europe the middle east and offshore us.
the sukuk issuance saw a geographic distribution of 61 per cent to middle east accounts 17 per cent to uk accounts 11 per cent to other european investors nine per cent to asia and an additional two per cent to other geographies.
in terms of distribution among types of investors the 15-year sukuk saw a diverse allocation with 63 per cent to banks 27 per cent to fund managers and an additional 10 per cent going to other types of investors.
positive news of the day coupled with strong first quarter results lifted the dubai financial market (dfm) general index nearly 116 points or 2.31 per cent that helped the benchmark index to breach another psychological barrier of 5100 mark for the second consecutive day.
in the previous session dfm main index crossed 5000 mark for the first time since august 2008. year-to-date growth of the index jumped more than 52 per cent to 5134.95 points on wednesday.
— abdulbasit?khaleejtimes.com
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