A. SREENIVASA REDDY (ABU DHABI)
Burjeel Holdings has decided to establish a senior unsecured sukuk issuance programme with an aggregate limit of $1.5 billion, according to a disclosure filed with the Abu Dhabi Securities Exchange.
The company said its board of directors, through a resolution passed by circulation, approved the creation of a multi-tranche senior unsecured sukuk issuance programme.
Under the programme, Burjeel Holdings may issue sukuk from time to time in one or more tranches and in any currency, with the total outstanding face value not exceeding $1.5 billion.
According to the disclosure, the sukuk to be issued under the programme will not be convertible into shares of the company and will rank pari passu with all other unsecured and unsubordinated obligations of Burjeel Holdings.
The sukuk will have a fixed tenor and may be offered to eligible investors both within and outside the UAE, subject to the required regulatory and shareholder approvals, Burjeel Holdings said.
The board also approved the establishment of a special purpose vehicle to act as the issuer for the sukuk programme. In addition, the board resolved to convene a general assembly meeting to seek shareholder approval for the establishment of the senior unsecured sukuk issuance programme, the issuance of sukuk thereunder, and the related amendments to the company’s articles of association.
In recent reports, S&P Global and Fitch Ratings have reported that apart from government, government-related entities and financial institutions, corporates also have been tapping bond and sukuk market to finance their expansion plans.