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Tamweel’s exchangeable Sukuk oversubscribed within hours

United Arab Emirates: Saturday, December 15 - 2007 @ 15:07

The issue was not only successfully priced despite the difficult market conditions but also achieved an all-in sub-libor funding cost level which makes it the first transaction in the GCC issuance market to achieve such pricing.

The Sukuk proceeds will be used by Tamweel for its general funding and expansion needs. Subscription for the Sukuk opened on December 13, 2007 and was priced and fully allocated on the same day within hours of the launch.

The Sukuk is expected will carry a sub-libor profit rate of 4.31%, payable quarterly in arrears, and the exchange price is $2.2711 which represent a premium in excess of 30% over the past 3 month volume weighted average market price of the Tamweel share price. The price also indicates a premium of 21% to the closing price of the Tamweel shares on 12 December 2007. This Sharia-compliant Sukuk is scheduled to mature in 2013.

The Sukuk will be issued by Tamweel Funding Limited, a special purpose vehicle established in Jersey, United Kingdom. Barclays Capital is appointed as the Sole Lead Manager and Bookrunner of the Sukuk.

Adel Al Shirawi, Chief Executive Officer of Tamweel said: “We have once more consistently delivered on our promises. This Sukuk is further evidence of the successful plan that we have put in place and implemented to diversify and further strengthen our funding sources. This success comes in the midst of troubled markets, which is evidence of investor confidence in Tamweel, its strategies and management team, and a reflection to our strong and stable growth. Proceeds will fuel our mortgage finance business in the UAE and the wider region and lead to stronger growth than that has led us to surpass our full-year earnings target in 2007.”

He added: “It is worth noting that Tamweel has been recently rated A/F1 by Fitch ratings and rated A3/P2 by Moody’s with a stable outlook on all ratings.”

Under the terms of the Sukuk, Sukuk holders will have the right to exchange the Sukuk into Shares or, at the option of the Issuer, a cash-equivalent amount. The issue price will be set at 100% of the initial aggregate face amount of the Sukuk and, unless previously redeemed, the Sukuk will be redeemed at par on Maturity. The Issuer has the right to redeem up to 50% of the Sukuk in each six month period from February 2011 subject to the value of the shares underlying the Sukuk exceeding 130 % of the face amount of the Sukuk for at least 20 out of any 30 consecutive trading days. The Sukuk is to close on 23 January 2008.

Application has been made to list the Sukuk on the Dubai International Financial Exchange. The Shares are listed and traded on the Dubai Financial Market.

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Saturday, December 15- 2007 @ 15:07 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.

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