UAE. Dubai-based mortgage lender Amlak Finance said on Sunday it
planned to sell as much as AED4.8 billion (US$1.3 billion) worth of
convertible and non-convertible Islamic bonds this year to help finance
expansion.
"This is an initial approval after the extraordinary general meeting
for the board to look into these programmes," Arif Al Harmi, Amlak
chief executive officer, told Reuters.
Amlak plans to issue convertible Islamic bonds, or sukuk, worth up
to AED1.8 billion and as much as AED3 billion of non-convertible sukuk,
it said in a statement.
Banks have yet to be mandated for the sales, Harmi said, adding that it was part of the company's 2008 financing requirements.
Sukuk comply with Islam's ban on the receipt of interest, and are
typically based on physical assets which pay a dividend or rent to
bondholders.
Gulf Arab issuers have slowed borrowing plans as concerns over the
US economy and the falling dollar have pushed issuers to weather market
conditions.
Amlak, an affiliate of Emaar Properties, will launch operations in
Qatar and Jordan this year and has applied for a licence in Bahrain,
Harmi said.
"We are also in discussions with partners for Syria," he said.
Amlak delayed a sale of Islamic bonds planned for the fourth quarter
of 2007 because of the fallout from the credit crisis triggered by US
mortgage defaults.
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