Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

UAE bond sales raise record $6billion  Join our daily free Newsletter

MENAFN - Khaleej Times - 13/06/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Khaleej Times) Etisalat dp world and emaar malls group to use funds for key business strategies

top uae entities have raised more than 6 billion in record bond sales.

telecom operator etisalat led thursday’s announcements by raising 4.3 billion in its debut bonds issue the biggest ever for a corporate issue in the region. this was followed by the world’s third-biggest ports operator dp world with 1 billion and emaar malls with 750 million through sukuk.

all three firms confirmed the sales on thursday.

etisalat

the bonds sold by abu dhabi-based etisalat were bid up in the secondary market on thursday with the us dollar tranches outperforming euro paper according to traders.

the telecom operator sold 4.3 billion bonds in four tranches on wednesday setting one record as the region’s biggest corporate issue ever and another for the cheapest pricing of any gulf bond above mid-swaps bankers said.

the two euro tranches attracted massive demand from european investors. about 80 per cent of the euro bonds — a seven-year 1.2 billion euro tranche and a 12-year tranche of the same size — went to european investors according to allocation data.

only 46 per cent of the dollar bonds — a five-year 500 million tranche and a 10-year tranche of the same size — went to europeans. thirty-one per cent was allocated to middle east investors.

“the issued bonds are denominated in us dollars and euros and consist of four tranches. a five-year tranche of 500 million with a coupon rate of 2.375 per cent per annum; a seven-year tranche of €1200 million with a coupon rate of 1.75 per cent per annum; a 10-year tranche of 500 million with a coupon rate of 3.5 per cent per annum; and a 12-year tranche of €1200 million with a coupon rate of 2.75 per cent per annum” etisalat said in its statement.

lead managers for the etisalat issue were deutsche bank goldman sachs hsbc and rbs.

“net proceeds from the issuance of the bond will be used for repayment of the outstanding facilities amounting to €3.15 billion that were used to fund the acquisition of vivendi’s 53 per cent stake in maroc telecom” the statement added.

dp world

port operator dp world raised 1 billion from a convertible bonds sale to fund acquisitions and growth.

the securities due in 2024 will pay an annual interest of 1.75 per cent and be converted at a price of 27.1396 a share a 37.5 per cent premium to its average share price of today the company said in a statement.

dp world chairman sultan ahmed bin sulayem said: “the proceeds from the convertible bond provide us with additional financial flexibility at an extremely low interest rate to take advantage of further organic or inorganic investment opportunities in order to enhance returns to shareholders over the medium term.”

dp world group chief executive officer mohammed sharaf said: “we are taking advantage of the current low-cost financing opportunities in the convertible market to secure long-term financing so we can continue to grow our business to meet the changing needs of our customers. the issuance also allows us to diversify our funding sources and access a broader investor base.”

emaar malls

emaar malls group raised 750 million from a debut sale of islamic bonds in line with a previously-announced bank loan and sukuk roadshows for the purpose of providing the appropriate capital structure for the group ahead of its proposed initial public offering.

emaar malls group successfully priced a 750 million 10-year regs debut sukuk with a profit rate of 4.564 per cent representing 182.5bps over 10-year mid-swaps on wednesday 11 june 2014.

the transaction came on the back of an expedited yet comprehensive global roadshow covering key financial centres — london singapore hong kong and the uae. the proposed issuance was very well received by the market with the order book closing at approximately 5.4 billion representing 7.2 times oversubscription.

— abdulbasit?khaleejtimes.com


 


Khaleej Times




  MENA News Headlines
 Sep 1 2015 - GCC USD61b railway project under constructionMENAFN
(MENAFN) According to Meed Projects, railway and metro projects worth a total of USD61 billion are currently under construction in the Gulf Cooperation Council (GCC) region.Out of the overall ...

 Sep 1 2015 - Sharjah's business activity up 13.6 percent in H1MENAFN
(MENAFN) Sharjah's business activity registered an increase in the January-June period of 2015 as the number of new licenses issued by the Sharjah Economic Development Department (Sedd) rose to ...

 Sep 1 2015 - UAE- Chaos at uniform stores as parents turn rowdyKhaleej Times
(MENAFN - Khaleej Times) Related Photos Kids in UAE go back to school "Come touch me and see what I will do" said a woman parent in response to another man who ...

 Sep 1 2015 - Rogo's offers party packages for childrenKhaleej Times
(MENAFN - Khaleej Times) Rogo's, the UAE'S first and only roller coaster-inspired casual dining concept, has some special party packages for kids. Combining fun, food and a behind-the-scenes insight ...

 Sep 1 2015 - UAE- Help child abuse victims speak out urges officialKhaleej Times
(MENAFN - Khaleej Times)Social workers can play a key role in guiding child abuse victims to overcome their past and lead a normal life a top official has said. Mohammed Rashid Al Dhanhani Chairman ...

 Sep 1 2015 - Making Abu Dhabi art centricKhaleej Times
(MENAFN - Khaleej Times)On September 2 singer songwriter and guitarist Toshi Reagon is inviting the Abu Dhabi audience to experience something new - a concert that blends science-fiction with ...

 Sep 1 2015 - Surveys in Dubai will now need approvalKhaleej Times
(MENAFN - Khaleej Times)Surveys and research studies in Dubai should be conducted by qualified and competent entities and according to internationally accepted scientific methodologies and ...

 Sep 1 2015 - UAE- Sultan bin Zayed named Man of Arab HeritageEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) MUSCAT 31st August 2015 (WAM) - H.H. Sheikh Sultan bin Zayed Al Nahyan the President's Representative and Chairman of the Emirates Heritage Club has been ...

 Sep 1 2015 - UAE- UOWD highlights top Master's programmes to meet Expo2020 job market requirementsEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) DUBAI 1st September 2015 (WAM) -- Ahead of the start of their autumn term the University of Wollongong in Dubai UOWD has highlighted key Master's programmes ...

 Sep 1 2015 - TCA Abu Dhabi unveils branding and social media integration boost for website listingsEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) ABU DHABI 1st September 2015 (WAM) -- Abu Dhabi Tourism and Culture Authority TCA Abu Dhabi has unveiled a refreshed look and feel for its ...

more...


 






Google

Click to Apply

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help