x Abu Dhabi, UAEThursday 27 July 2017

Tamweel eyes second bond float this year

Tamweel is eyeing a return to sukuk markets, as credit conditions ease for Dubai companies.

Tamweel is planning to increase its borrowing from credit markets as it meets with bond investors this month.

The Islamic mortgage provider has hired Abu Dhabi Commercial Bank, UBS and Emirates NBD ahead of a possible sukuk sale, Reuters reported yesterday.

The sale would come five months after Tamweel last tapped debt markets in an issuance worth US$300 million (Dh1.1bn) in January.

Tamweel's return to wholesale debt markets, which previously provided the majority of its funding, comes a year after its shares returned to trading on the Dubai Financial Market.

The onset of the global financial crisis left Tamweel frozen out of credit markets and a planned merger with Amlak Finance that never materialised left both companies' shares suspended.

Tamweel was rescued by Dubai Islamic Bank, which injected $102m to take a controlling stake in late 2010. Last month Dubai Islamic Bank itself launched a $500m sukuk due in 2017.

With its funding needs resolved, Tamweel has found credit markets more receptive than in the past.

The yields on its most recent sukuk, which pay a coupon of 5.154 per cent and mature in 2017, have fallen by 1.1 percentage points to 4.47 per cent since listing on the Irish Stock Exchange in January.

Sukuk yields move in the opposite direction to price.

ghunter@thenational.ae

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