Damas Group raises USD255 million to propel international expansion

Damas Group, the leading jewellery retail chain in the UAE, Middle East and South Asia, announced that the syndication it has floated in association with top international banks BNP Paribas (the book runner and mandated lead arranger) and Gulf International Bank was oversubscribed and has generated $255 million at an impressive pricing of Libor plus 1.30% per annum.

The announcement was made by Tawhid Abdullah, Managing Director of Damas together with PK Dutta, CFO, Damas; Michael Pereira, Head of Territory, BNP Paribas; and Abbas Ameeri, Managing Director for Merchant Banking, Gulf International Bank, during a press conference on Damas strategic initiatives held at Jumeirah Emirates Towers.

Damas Group plans to utilize the raised amount to propel future growth and expand its regional and international retail base. With a turnover of over $1 billion, the Group has demonstrated rapid growth doubling its turnover from 2004 to 2006.

Tawhid Abdullah foresees the expansion of the retail chain as very profitable and will contribute substantially to the bottom line.

"This is a strategic move to spread the risk and rewards of our operations. With the economy booming in most parts of the world, particularly in South Asia and the Middle East, the expansion will offer a good chance to increase the brand capitalization of Damas, while adding to its profitability. To augment further growth, the Group will actively consider floating an IPO in the near future,"

he commented.

BNP Paribas has partnered with Damas for the second time to lead arrange the successful syndicated facility. The syndication has brought keen interest from local, regional and international banks which contributed significantly to the successful oversubscription of this syndication.

Speaking on the occasion, Michael Pereira said: "BNP Paribas is pleased to be associated with a company known for its integrity, professionalism and dynamic business growth. Damas is the leading business house active in the Gold and Diamond market in the region and has become a powerhouse in the retail sector. It makes perfect business sense to align our objectives with them."

Abdullah also informed of the joint venture with Emaar Industries and Investments for manufacturing jewellery products in DMCC, which will go on stream soon. "Our long-term vision is to make Damas a global player in the jewellery trade in terms of manufacturing capability, distribution and retail."