Qatari real estate developer secures $460m in finance

07 December 2016

Regional, international banks participate in refinancing

Qatari real estate developer Ezdan Holding Group has closed an eight-year $460m shariah-compliant finance deal.

The deal is to refinance maturing obligations and extend the maturity of Ezdan’s liability profile.

Ten banks participated in the syndication of the senior secured finance.

Dubai’s Mashreq was the sole coordinator. Mashreq al-Islami, Dubai Islamic Bank and the UK’s HSBC were the initial mandated lead arrangers and bookrunners.

Dubai’s Emirates NBD and Abu Dhabi’s Union National Bank were also mandated lead arrangers. Bahrain’s Ahli United Bank – Al Hilal Islamic Banking Services and National Bank of Ras Al Khaimah were lead arrangers and Manama-based Bank of Bahrain & Kuwait (BBK), the Industrial Commercial Bank of China in Doha and Pakistan’s United Bank Limited were arrangers.

Ezdan’s Islamic finance deal follows a $500m sukuk issuance in May 2016 as part of a $2bn sukuk progamme. The sukuk had a 4.375 per cent coupon rate and priced at around 337.5 basis points over midswaps, according to Reuters.

“The successful closure of this transaction is the natural evolution for Ezdan to more structured facilities with longer tenor complementing its capital structure and the ability to tap the Sukuk market,” said Jan Willem Sudmann, group head of Mashreq’s International Banking Group in a press release.

Ezdan also secured $1bn finance from banks in two syndications.

Ezdan is attempting to reduce its financing levels and align them to revenues from its real-estate assets.

“Ezdan has once again successfully secured a 100 per cent shariah compliant structured debt instrument as part of the group’s on-going strategic plan to diversify its sources of funding and optimize its balance sheet profile,” said Ali Al Obaidli, CEO of Ezdan.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.