Gold Sukuk DMCC
The Gold & Precious Metals division is proud to unveil another successful product for the market, a unique sharia compliant financial instrument that has been well over subscribed since it’s introduction. Gold Sukuk dmcc is a special purpose entity where the proceeds of the issue will be used to contribute to the capital of the joint venture formed between Gold Sukuk dmcc and Dubai Multi Commodities Centre (DMCC) that will thereafter finance the construction of three commercial towers in the DMCC free zone. Full details of the towers, currently under construction can be seen on this website under the ‘facilities’ section.
A unique aspect of this offering is the alternative provided to investors to receive their repayments either as normal in US dollars or the equivalent value in gold kilo bars, stored in Dubai.
In April 2005, Standard & Poor’s granted both DMCC and the financing with an “A” Stable credit rating. This rating was the first ever achieved in Dubai and just the second in the entire UAE reinforcing DMCC’s important role in the Dubai government’s economic diversification strategy during the coming years.
The financing closed on 6th May 2005 with the following important features:
| Size of Offering : | US $ 200 million |
| Margin : | Six months Libor + 0.60% |
| Tenor : | Five Years. |
| Repayments : | 10 in total. {Every six months for five years.} |
| Geographic investor spread : | Middle East 44%, Asia 41%, Europe 15% |
DMCC was greatly assisted in this project by:
| Mandated Lead Manager : | Dubai Islamic Bank PJSC |
| Joint Lead Manager : | Standard Bank London Limited |
| Financial Advisor : | Isithmar PJSC |
The relevant details for gold repayments are as follows:
| Gold Settlement Agent : | Standard Bank London Limited |
| DMCC Approved Vaults :in Dubai | Brinks Global Services,MAF Securicor, Transguard |
| Dubai Good Delivery Approved Refiners: | The Dubai Good Delivery List–Gold |