Wednesday 28, November 2018 BY WILLIAM MULLALLY
SENAAT, one of the largest industrial investment holding companies in the UAE, announces that it has successfully issued AED 1.1 billion ($300 million) through a fixed rate senior unsecured US dollar denominated RegS Sukuk with a sevenyear tenor. The issue follows a series of investor meetings which took place in Europe and Asia, as well as in the United Arab Emirates.
The new Sukuk, which will be dual listed on the London and Abu Dhabi Stock Exchanges, had strong investor demand both locally and internationally, enabling the issue to be 10 times oversubscribed. The Sukuk was competitively priced, with a fixed income of 4.76 per cent per year, underpinned by Moody’s “A3” which was issued last week, and Fitch’s “A” credit ratings. These ratings are the first to be assigned to SENAAT by Moody’s and Fitch and have also been assigned to the Sukuk itself.
In assigning these ratings, both agencies noted SENAAT’s role as a main player in driving forward Abu Dhabi’s diversified manufacturing industry, underlining the Group’s position as a key pillar in the implementation of the Emirate’s 2030 Economic Vision. They pointed to SENAAT’s financial strength, profitability and ability to self-finance its capital and operational expenditure, as well as the diversified and stable flow of dividends from its portfolio companies.
Through issuing the Sukuk, SENAAT aims to enhance its financial flexibility and ability to access capital markets. The proceeds from the Sukuk issue will be allocated to refinance part of SENAAT’S existing group debt, to enhance the company's overall capital structure and cash flow levels.
“The issuing of SENAAT’S Sukuk enjoyed strong demand from local and international markets, reflecting investor confidence in the emirate's position in the global financial markets and its Economic Vision 2030. SENAAT today is better placed than ever to achieve its goal of becoming one of the leading self-sustaining industrial groups with strong financial fundamentals and a diversified portfolio that limits risk and offers excellent growth opportunities," His Excellency Hussain Jasim Al Nowais, Chairman of SENAAT, said.