JAFZA to raise US$1.85bn for redemption

Dubai’s Jebel Ali Free Zone JAFZA plans to raise US$1.85bn towards the redemption of its US$2bn Islamic bond this year by issuing another sukuk and obtaining an Islamic financing facility, a source familiar with the plan said on Tuesday.The source, who declined to be named ahead of any official announcement, said JAFZA aimed to raise US$650m from the new sukuk and US$1.2bn from the Islamic facility.The Islamic facility is expected to be a borrowing arrangement from banks, banking sources had said earlier. The rest of this year’s sukuk redemption would be paid for with JAFZA’s internal cash resources.The state-owned company’s AED7.5bn US$2.04bn sukuk is due in November, and bond holders voted last month to let JAFZA repay the debt early.

via JAFZA to raise US$1.85bn for redemption – source – Sukuk – ArabianBusiness.com.