Abu Dhabi – Mubasher: SENAAT on Wednesday revealed the successful issuance of AED 1.1 billion ($300 million) sukuk on two bourses.
The issuance was made “through a fixed rate senior unsecured US dollar-denominated RegS sukuk,” the mega industrial investment firm revealed, adding that the issue was 10 times oversubscribed
The seven-year sukuk will be dually-listed on the London Stock Exchange (LSE) and the Abu Dhabi Securities Exchange (ADX).
“The sukuk was competitively priced, with a fixed income of 4.76% per year, underpinned by Moody’s “A3” which was issued last week, and Fitch’s “A” credit ratings. These ratings are the first to be assigned to SENAAT by Moody’s and Fitch and have also been assigned to the sukuk itself,” SENAAT stated.
Through the sukuk issue, SENAAT will work on bolstering its financial flexibility as well as its ability to access capital markets. Moreover, the sukuk proceeds will be used to refinance part of SENAAT’S existing debt and enhance its overall capital structure and cash flow levels.
Commenting on the sukuk issue, SENAAT chairman Hussain Jasim Al Nowais noted the strong investor demand, which he said reflected “confidence in the emirate's position in the global financial markets and its Economic Vision 2030.”
To market its sukuk, SENAAT had held investor meetings in the UAE, Europe, and Asia, it said, noting that investor demand was strong both locally and internationally.
“SENAAT today is better placed than ever to achieve its goal of becoming one of the leading self-sustaining industrial groups with strong financial fundamentals and a diversified portfolio that limits risk and offers excellent growth opportunities,” he added.
