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[UAE, 16th November 2014] - Drake & Scull International PJSC (“DSI”), a regional market leader in the integrated design, engineering and construction disciplines of General Contracting, Engineering (Mechanical, Electrical and Plumbing (MEP), Water and Power), Rail, Oil and Gas, and Water and Wastewater Treatment, announced today the issuance of a US$ 120 million unrated senior unsecured 5-year certificates by way of private placement (the “Sukuk”). The Sukuk will be due on the 12th November 2019 and redeemed fully at maturity.
DSI mandated Emirates NBD Capital Ltd. and Mashreqbank PJSC (via its Islamic banking arm Mashreq Al-Islami) as Joint Coordinators on the deal while also acting as Joint Lead Managers with Al Hilal Bank PJSC and Noor Bank PJSC who were legally advised by international law firm King & Spalding. DSI was legally advised by Simmons & Simmons in connection with the issue.
The 5-year Sukuk structured under the Sharia principle of Murabaha, represents the first Sukuk based on Murabaha trades of Sharia-compliant certificates on the NASDAQ Dubai Murabaha Platform. The NASDAQ Dubai Murabaha Platform is an innovative Islamic financing platform set up by NASDAQ Dubai in collaboration with Emirates Islamic and Emirates Islamic Financial Brokerage as part of their support for the Dubai government's initiative to position Dubai as the capital of the global Islamic economy. This Sukuk demonstrates DSI's commitment to support the government's initiative and the growing Sukuk market in the region.
Mukhtar Safi, Chief Financial Officer of DSI, said ,“the success of this transaction reflects the market confidence in DSI and is another endorsement to our long standing relations with leading international and regional banks and financial institutions. The substantial interest shown in the 5-year Sukuk underlines the strong trust in DSI's resilient growth plans and regional prospects.”
“Our backlog stands at AED 15.3 billion record high as of September 30th 2014. Over the past five years, our backlog grew exponentially at 28.8 % compound annual growth rate (CAGR) while maintaining the same capital structure. The Sukuk transaction is instrumental in improving our capital efficiency to deliver our growing backlog and to cater to our growth trajectory in the GCC, MENA and Asian markets.”
“The proceeds of the transaction will be mainly used to capitalize our businesses in our leading market in the KSA and in our emerging markets such as India and Egypt. We will be also be targeting a small-cap acquisition to complement our Oil & Gas division in the GCC as well as refinancing part of our short term borrowings on the balance sheet.”
“We have set out clear risk management guidelines to monitor and maintain our leverage ratios and we are quite comfortable with the financial covenants required to ensure seamless operations and a balanced capital structure to cater for our working capital requirements.”
DSI continues to enhance and strengthen its services offering with unmatched vertical integration and global footprint. The collaborative capabilities of the General Contracting, Engineering (MEP and Water and Power), Oil and Gas, Rail and Infrastructure Development continue to deliver strong performance quality work on project sites across MENA, South Asia, and Europe. Total project awards year to date approximately stand at AED 5.4 billion, with new projects in the KSA, the UAE, Qatar, Algeria, Jordan, India, Romania, Turkey and Egypt.
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