|Investment Corporation of Dubai raises USD 5.6 billion with conventional and Islamic finance deals||
|24 August 2008
DUBAI – Allen & Overy said that it has advised 13 mandated lead arrangers (MLAs) to raise USD5.6 billion for Investment Corporation of Dubai (‘ICD’ – the investment arm of the Government of Dubai). This includes the signing of a USD3.6 billion conventional facility, a USD1.5 billion murabaha facility and a USD500 million co-ownership facility – marking the debut bank financing for ICD. The transaction signifies the growing trend of utilising both conventional and Islamic tranches for debt financings in the Middle East region.
The MLAs on the conventional facility included Barclays Capital, Citibank N.A., Deutsche Bank AG, Emirates Bank International PJSC, HSBC Middle East, J.P. Morgan Plc, Mashreqbank PSC, Morgan Stanley Bank International Limited, The Royal Bank of Scotland plc and UBS Limited while Dubai Bank, Noor Islamic Bank PJSC and Standard Chartered Bank were the MLAs which had arranged the murabaha facility.
Allen & Overy banking consultant Shehzaad Sacranie commented: “Once again the market has shown tremendous confidence in Dubai. It is a significant achievement for the Investment Corporation of Dubai to have raised facilities of this size given current market conditions.”
Allen & Overy banking senior associate Amar Meher added: “The deal represents the increasing trend of deals being structured with conventional and Islamic tranches. In particular, it showcases the potential of Islamic institutions to help address the liquidity gap in the current market conditions.”
The Allen & Overy team on the conventional facility was led by Dubai-based partner Bimal Desai, assisted by consultant Shehzaad Sacranie while the murabaha facility was led by Dubai-based partner Anzal Mohammed assisted by senior associate Amar Meher.