Tamweel's $210m debut securitization issue closes. Adel Al Sherawi announced
DUBAI — Tamweel PJSC has announced that its debut $210 million asset-backed securitisation issue successfully closed yesterday. The Class A bonds will pay a variable return rate to investors of one month US$ Libor plus 35bps.
Adel Al Shirawi, chief executive officer of Tamweel, said: "We are delighted to announce the successful closure of Tamweel's asset-backed securitisation, which has been placed with European investors primarily. Tamweel successfully established a competitively priced benchmark and a new pricing reference for future issuances, diversifying its investor base and matching the funding to asset duration."
He continued: "This issue, which was vetted by Tamweel's Shariah advisory board, is also one of the first securitisations of its type in the world. Tamweel's tapping into international capital markets coincides with our regional expansion plans, providing better and more cost-efficient funding mechanisms for our regionally based assets."
Al Shirawi expressed his particular appreciation to the Lands Department, which has played a major role in facilitating the development of a secondary market for home financing, and continues to foster the growth of the real estate market in the UAE. He also extended his appreciation to Government of Dubai and Department of Finance.
Gaurav Agarwal, chief financial and support services officer, Tamweel, said: "This is an important source of funding for Tamweel and will contribute immensely to growth and funding needs of Tamweel."
Morgan Stanley & Co. International plc was appointed as joint manager and joint bookrunner for the issue and provider of hedging solutions. Standard Chartered Bank was also joint manager and joint bookrunner for the issue and provider of liquidity facilities. Emirates National Securitisation Corporation (ENSEC) structured this landmark transaction.