Tamweel's USD210 million asset-backed securitization issue prices successfully

The Class A bonds will pay a variable return rate to investors of one month US$ Libor +35bps. The Class A bonds expected to receive a rating of Aa2 by Moody's Investors Service and AA by Fitch Ratings Limited. These are among the highest international ratings achieved to date in the Middle East and North Africa region.

Adel Al Shirawi, CEO of Tamweel, said: "The attractive pricing of the issue reflects Tamweel's landmark achievement, especially considering that the asset backed securitization market is going through a volatile stage. This is indeed a great occasion for Tamweel—but also for the United Arab Emirates and the region."

He added:

"The deal is the first internationally rated residential asset backed securitization out of the Middle East where the rating is dependent upon perfected true sale of assets and is a huge accomplishment for Tamweel, which is among the first institutions to issue asset-backed securities out of Dubai. This issue, which was vetted by Tamweel's Sharia advisory board, is also one of the first securitizations of its type globally."

"The successful pricing of this securitization demonstrates an impressive level of confidence in the quality of Tamweel's asset book and its superior risk management. This is a testimony to the credibility established by Tamweel among local, regional and international investors," Al Shirawi noted.

He concluded: "Tamweel tapping into international capital markets coincides with our regional expansion plans, providing better and cheaper funding mechanisms for our regional based assets. We expect that Tamweel is at least two years ahead of most competitors in this domain."

Al Shirawi extended his appreciation to the various government departments that have played a major role in facilitating the development of a secondary market for home financings, specifically the Lands Department and Government of Dubai, Department of Finance.

Al Shirawi also expressed his appreciation to Emirates National Securitization Corporation (ENSEC), which through its pioneering efforts structured this landmark transaction demonstrating Dubai's ability to source sophisticated capital markets issues.

Morgan Stanley & Co. International plc was appointed as joint manager and joint bookrunner for the issue and provider of hedging solutions. Standard Chartered Bank was joint manager and joint bookrunner for the issue and provider of liquidity facilities.