Tamweel Repays $300m Five-Year Sukuk

Dubai-based Tamweel announced today that it has repaid in full a $300 million five-year Sukuk, which matured earlier this month.

The proceeds from the Islamic bond, which was issued in 2008, were used for ‘general Islamic financing and corporate purposes’, the Islamic fiannce provider said in a statement on Wednesday.

The news comes shortly after Tamweel announced it had settled its $210 million asset-backed security, which it issued in 2007.

Tamweel posted an 11.3 per cent drop in its fourth-quarter profit at the start of January, with the company blaming a full-year decline in earnings on provisions.

The company made Dhs27.5 million ($7.5 million) in the final three months of 2012, compared to profit of Dhs31 million in the corresponding period of 2011.

The company made a full year net profit of Dhs72.5 million in 2012, according to a bourse filing, a 28.9 per cent drop compared with the previous year.

A statement at the time said: “Net profit was lower in the current year due to exceptional provisions relating to certain ongoing litigations for which the company made full provision while continuing to fight its rights.”

Tamweel has been the focus of a full takeover offer by its majority shareholder Dubai Islamic Bank.

DIB said on January 3 its board had approved plans to fully acquire Tamweel, in which it already holds a majority stake of 58.2 per cent.