International law firm Simmons & Simmons has advised The First Group (TFG), one of the largest privately-owned real estate developers in Dubai, on the issuance of a US$135m secured amortising sukuk issuance. The sukuk was listed on the London Stock Exchange’s International Securities Market.
TFG was founded in 2005 and has delivered over 4.1m sqft of built-up-area across 11 projects, with over 4,000 units delivered to date. The company has established a solid business model encompassing both real estate and hotel development with Asset Management, Hotel Management and F&B divisions ensuring recurring cashflows and multiple income streams. Continued expansion is forecast with a further seven projects totalling 3.5m sqft of built-up area currently under active development.
Rashad Barajakly, Chief Financial Officer and Managing Partner of TFG commented:
“We are delighted to have worked with our partners towards the
successful issuance of this sukuk and look forward to it contributing
towards the ongoing growth of TFG”.
Commenting on the transaction, Lee Irvine, Debt Capital Markets Partner, who led the team at Simmons & Simmons said:
‘‘We are delighted to have supported the company on this ground breaking capital markets transaction, which combines high yield credit concepts with Islamic finance principles - a unique transaction in Dubai”.
SHUAA Capital psc acted as Lead Manager, The Law Debenture Trust Corporation p.l.c. acted as Delegate and Citigroup, N.A., London Branch acted as Principal Paying Agent. Herbert Smith Freehills LLP advised the Lead Manager and White & Case LLP advised the Delegate.
