Abu Dhabi, June 25, 2008- Finance House PJSC and Abu Dhabi Islamic Bank PJSC (ADIB) have announced a joint financing deal worth AED 127.8 million with Sawaeed Investment LLC and Mountain Gate Property Investment LLC to finance construction and commissioning of workers accommodation in the “Workers Residential City” Mafraq, which are being developed under the auspices of the Higher Corporation of Specialized Economic Zones (ZonesCorp), of Abu Dhabi Government.
The deal, which will be repaid over a period of eight and half years (on door-to-door basis) was arranged applying a combination of Conventional and Islamic financing. Finance House and ADIB acted as the Mandated Lead Arrangers. Additionally Finance House acted as Facility and Security Agent for the transactions.
Each accommodation is expected to provide residential facilities to 7250 workers of various categories and will have all facilities like mosques, shops, central kitchen, dinning rooms, entertainment area, etc. The construction is expected to be completed by March 2009.
“We are pleased to have secured our Long Term financing requirements through these two leading financial institutions, with a perfect blend of both Islamic and Conventional funding,” said Obaid Saif Obaid Al Khameeri, Chairman of Sawaeed Investment and CEO of Sawaeed Employment.
“We are also very pleased to have arranged this financing thru our continuing partnership with Abu Dhabi Islamic Bank. Financing of this key project opens out new vistas for future collaboration between two fine/premier financial institutions,” said Mohammed Abdulla Alqubaisi, Chairman of Finance House.
“ADIB is pleased to have structured this transaction in association with Finance House and we believe this kind of financing partnership will open the door to further joint arrangements between conventional & Islamic Institutions”, said Tirad Mahmoud, CEO of ADIB.
“Structuring of this financing package by Finance House involving Equity, Mezzanine Debt and Senior Debt with the assistance of Abu Dhabi Islamic Bank has been a challenging task and could become a landmark deal for future project financing,” said Hamid Taylor, General Manager of Finance House.