Markets Update: Shares in Tamweel rise after the Islamic mortgage provider says it and parent Dubai Islamic Bank have hired banks ahead of meeting to tap international credit markets.
Tamweel to tap international credit markets
Tamweel's shares rose in early trading after the Islamic mortgage provider said it had hired banks to tap international credit markets for the first time since its rescue by Dubai Islamic Bank.
Dubai Islamic Bank and Tamweel announced a series of meetings with fixed-income investors in Asia, the UAE and Europe, the company said in a statement to the Dubai Financial Market.
"Following the meetings, a DIB-guaranteed issuance may be executed, subject to market conditions," the statement said.
Tamweel's business model, which had relied on wholesale funding, collapsed at the onset of the global financial crisis in 2008 when access to credit dried up. An aborted rescue plan, involving a merger with Amlak Finance, left its shares effectively frozen until May this year.
Tamweel's shares rose 1.8 per cent in early trading to 70 fils per share. Dubai Islamic Bank's shares rose 0.5 per cent to Dh2.00 each.
The Abu Dhabi Securities Exchange General Index rose 0.3 per cent to 2,445.20, while the Dubai Financial Market General Index was flat at 1,371.58.
Markets were a mixed bag, with Dana Gas and Drake & Scull International rising, while Aldar Properties and Emirates NBD fell.
Asian stocks fell as global growth worries brought concerns for international traders. The Nikkei 225 fell 0.5 per cent to 8,434.61 and the Hang Seng index decreased 1.8 per cent to 17,917.59.
Oil prices edged upwards following a surge yesterday, as speculation grew of a European oil embargo against Iran. Brent futures rose 14 cents to $111.52 a barrel.