Wednesday 04, January 2017 by William Mullally

Meydan receives AED 1 billion in Islamic financing

The deal was structured to meet Meydan’s financing objectives, on the back of its ongoing District One Project, a master-planned luxury residential neighbourhood in Mohammed Bin Rashid City in Dubai.

Abu Dhabi Islamic Bank (ADIB) has acted as the sole bookrunner and mandated lead arranger on a AED 1 billion Islamic financing facility for Meydan, a diversified business group operating in multiple sectors including hospitality, retail and real estate development. Dubai Islamic Bank and Al Hilal Bank were both mandated lead arrangers for the financing, which matures in December 2018.

The deal was structured to meet Meydan’s financing objectives, on the back of its ongoing District One Project, a master-planned luxury residential neighbourhood in Mohammed Bin Rashid City in Dubai.

Commenting on the transaction, Tirad Al Mahmoud, CEO of ADIB, said, “This deal breaks new ground in a number of ways. It demonstrates our ability to bring together diverse elements to create a unique and highly effective solution for our client. It also evidences the results we are achieving through stepping up our corporate financing activity, with a particular focus on high-growth companies and the real estate sector. We expect the structure of this deal will serve as a model for future mandates, and further demonstrates that we are always assessing how we can push the boundaries of Shari'ah compliant financial solutions.”

Commenting on the development Mr. Saeed Humaid Al Tayer, Chairman and CEO of the Meydan Group LLC said, “This facility assists in realising our funding objectives to build strategic partnerships with local and regional financial institutions to continue our growth and enable us to fulfil our business strategy of linking the world with the Emirate of Dubai.”

Earlier this year, Meydan raised AED 1 billion Islamic financing through a dual tranche offering, comprising a AED 700 million Sukuk issue and a AED 300 million term facility, both maturing in 2024. ADIB acted as the sole coordinator and structuring bank for the financing, as well as a joint lead manager and bookrunner for the Sukuk issue. Al Hilal Bank, Sharjah Islamic Bank and Ajman Bank were also involved in the transaction.

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