(MENAFN) Dubai Investments CEO, Khalid Bin Kalban, announced that the investment company is set to launch a USD272-million 5-year Islamic bond (Sukuk) offering, reported Arabian Business.
Kalban said that proceeds of the sukuk, which will be issued at less than 5 percent, will be used to pay off debt and fund expansion that might comprise 6 acquisitions.
He added that once Dubai Investments, which has 32 firms with interests in real estate, manufacturing and finance, will obtain the USD272 million, it will restructure, and could raise some of the capital of its manufacturing units that were subjected to penalties and higher costs of borrowing, and lower their costs.
The CEO added that the largest investment firm listed on the Dubai Financial Market projects the deal to be sealed and the financing to be secured by the end of April.
It is worth noting that at the current time, Dubai Investments is evaluating 6 entities as part of its acquisition and growth strategy, which would cost nearly USD76.21 million.
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