- Final US$20 million repayment on five-year Islamic bond made on schedule
- Demonstrates underlying financial strength of DMCC
- Underscores rapid growth and development of Jumeirah Lakes Towers
Dubai Multi Commodities Centre (DMCC), a Dubai Government initiative, announced today that it has redeemed its US$200 million Islamic bond, or sukuk, issued in May 2005. The final US$20 million repayment on this five-year sukuk was made on schedule.
Originated in 2005, DMCCâ€™s US$200 million issue met with a very positive response from financial institutions across the Middle East, Asia and Europe, based on the long-term strength of DMCCâ€™s business model. Unique features of this innovative, Shariah-compliant financial instrument included the ability of investors to receive repayments in either US dollars or gold bars.
â€œWe are extremely pleased to announce the successful repayment of the sukuk and would like to thank our sukuk holders for their confidence in DMCC,â€ said Ahmed bin Sulayem, Executive Chairman, DMCC. â€œDespite challenging financial conditions internationally, as well as ongoing volatility in global commodities markets, todayâ€™s announcement demonstrates the underlying strength of DMCC and the critical importance of Dubai as a hub for the worldwide commodities trade.â€
The proceeds of the 2005 issue were used by DMCC to finance the construction of commercial towers in Jumeirah Lakes Towers (JLT).Â These commercial towers,Â Â dedicated for international commodities focused businesses, are within JLT, a 200- hectare mixed-use free-zone administered by DMCC.
â€œAt the time the sukuk was issued, DMCC and our free zone Jumeirah Lakes Towers were nascent projects, distinguished only by our vision to bring value added services and efficiencies to the commodities supply chain and encourage the flow of commodities trade through Dubaiâ€ said Malcolm Wall Morris, Chief Executive Officer â€“ DMCC. â€œToday, that vision is a reality with JLT now comprising of 47 towers housing over 2,000 companies and more than 10,000 residents.Â We are on track to complete the project by mid-2012 and will continue to strive to meet our customers demandsâ€™.