The transaction was launched on 6th June 2006. Unicorn and WestLB London are joint lead arrangers with Unicorn also acting as the structuring agent and WestLB's London branch acting as underwriter and sole bookrunner.
This is the first Musharaka Sukuk structured with a put option for the investors and a call option for the issuer. The put option allows each certificateholder (investor) to exit the transaction at year three while the call option allows the issuer the same flexibility at the same date.
The Sukuk structure is Sharia compliant, having been approved by the internal Sharia advisors of UIB. Transaction distribution has been geared towards a wide investor base both inside the Gulf region and outside - particularly to European and South East Asian investors.
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Unicorn Investment Bank and WestLB launch USD150 m Sukuk for The Investment Dar Company
- Bahrain: Thursday, June 15 - 2006 at 08:40
- PRESS RELEASE
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Unicorn Investment Bank ('UIB') and WestLB London branch have started in Bahrain the roadshow of a 5-year USD150 million Musharaka Trust Sukuk for The Investment Dar Company ('TID') of Kuwait.
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Posted by Anne-Birte Stensgaard, Senior News EditorThursday, June 15 - 2006 at 08:40 UAE local time (GMT+4)
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About the Sukuk
• Sukuk has a 5 year maturity
• 3 year put option at Investor's option
• 3 year call option at Issuer's option
• Proposed profit rate:
o Years 1-3: 6-month LIBOR + 125bps p.a.
o Years 4-5: 6-month LIBOR + 175bps p.a.
• SPV structure, with recourse to TID
• Freely transferable instrument in accordance with Sharia principles
• The Sukuk structure has been approved by the internal Sharia advisors of each of Investment Dar Co. and Unicorn.
• Investment Dar Co. has a rating of BBB from Capital Intelligence and A- from ICRA
About the Issuer
The Issuer is to be a special purpose vehicle incorporated in the Cayman Islands. It will be a single purpose company established with the sole purpose of issuing the Sukuk. The Issuer will act as agent of, and trustee for, the Investors.
About The Investment Dar Company
The Investment Dar Company K.S.C. (TID), a Kuwaiti shareholding company, was established in 1994 as one of the first specialised Islamic financing companies in the GCC to offer consumer facilities. TID began its operations in 1995 with a capital of KD15.8 million (US$54 million) and has since then experienced consistent and exponential growth, from its starting point in consumer financing activities.
Today, Investment Dar Co. employs a staff of over 400, and is a diversified holding company with interests in consumer finance, investment and investment management, asset management, banking, real estate, insurance, consulting services and logistics. As of 31 December 2005, Investment Dar Co. had total assets of KD670 million, or approximately US$2,295 million, with shareholders' equity of KD194 million (US$664 million). Its 2005 year-end revenues and net income reached KD121 million (US$414 million) and KD81 million (US$277 million), respectively. As of 1 June 2006, Investment Dar Co.'s market capitalization was KD613 million, or approximately US$2.1 billion.
As a result of its growth, Investment Dar Co. is currently one of the largest finance and real estate companies in Kuwait as well as in the GCC. It has achieved such growth while continuing to adhere to the principles of Islam in all of its activities. Moreover, Investment Dar Co. was the first Sharia-compliant company to obtain the ISO 9001 International Quality Standards Certification in 1999, which was upgraded to ISO 9001:2000 in 2005.
Investment Dar Co. is currently listed on the KSE, and its operations is well diversified between Kuwait, other GCC states with vision for MENA Region.
Investment Dar Co. has an issuer rating of A- by ICRA Limited, an Asian associate of Moody's Investor Service, and BBB long term rating by Capital Intelligence.
About Unicorn Investment Bank
Unicorn Investment Bank was capitalized at US$ 111 million and commenced operations on May 5, 2004 in the Kingdom of Bahrain. UIB is a full service Islamic investment bank, with specialist teams operating in corporate finance and capital markets, private equity, asset management, strategic mergers and acquisitions and Takaful (Islamic insurance). The bank currently has offices both inside and outside the Middle East, including the United States and Malaysia.
• In Quarter 1 of 2006, UIB achieved revenues of US$ 25.5m and earnings of US$ 16.02m.
• In its first eight months of business, UIB achieved revenues of US$ 36m and earnings of US$ 17.06m.
• UIB recently reported second-year revenues of US$ 52.6 m and earnings of US$ 24.2m for 2005 financial year.
• UIB has achieved a number of "firsts" in Islamic banking. In November, the Bank closed the "KSA Real Estate Fund-1", the first ever equity fund to allow non-Saudi nationals to invest in the growing Saudi Arabian property market via an innovative financial and legal structure.
• In December, UIB announced "Gulf Springs", the first pan-GCC real estate fund, in partnership with leading real-estate developers in each GCC market, who as founding investors, bring local knowledge and investment opportunities.
• UIB has recently closed "KSA MBS 1 International Sukuk," the GCC's first Sharia-compliant asset-backed security for the Kingdom of Saudi Arabia: a debt product designed for home financing companies akin to a mortgage-backed security in partnership with a multilateral organisation and underwritten by a global institution.
• UIB has completed several Private Equity investments in the United States including the US$32 million acquisition of Gardens Residential Care Centers in California, USA in 2004 and has just completed a US$7 million equity investment in Ellington-Elsasser, Inc. known by its trade name Ellington Leather Goods for 90% of the common shares. UIB's investment strategy is to exit within a 5 year period via a sale to a strategic or financial buyer
• Since inception, UIB has now advised, structured and successfully placed deals with a total value in excess of US$ 1 billion.
www.unicorninvestmentbank.com
About WestLB
WestLB AG is one of the largest banks in Germany, with total assets in excess of € 250 billion. WestLB is one of the leading arrangers of syndicated financing and capital markets transactions in the Middle East, with a particular expertise in Islamic financings.
According to Dealogic Loanware, WestLB was the No.1 mandated lead arranger and No. 1 bookrunner for syndicated Islamic financings in 2005 (based on number of facilities), and is currently ranked No. 2 mandated lead arranger for 2006 (year to date). WestLB has arranged over US$ 4 billion of Islamic financings in the last two years and highlights include the following transactions:
i) Arcapita Bank, Bahrain (October 2005) - US$ 200 million 5-year Sukuk Al-Murabaha arranged and underwritten by WestLB together with 2 other financial institutions;
ii) United Gulf Bank BSC, Bahrain (October 2005) - US$ 175 million 3-year commodity Murabaha arranged and underwritten by WestLB together with 3 other financial institutions;
iii) TSKB, Turkey (October 2005) - US$ 50 million 1-year commodity Murabaha arranged and underwritten by WestLB on a sole basis;
iv) Dolphin Energy, UAE (October 2005) - US$ 1,000 million Ijara facility jointly arranged by WestLB;
v) FFK Fon Leasing, Turkey (December 2005) - US$ 44 million capital goods Murabaha arranged by WestLB on a sole basis;
vi) Department of Civil Aviation, Dubai (April 2006) - US$ 1 billion 5-year Istisna/Ijara Sukuk arranged by WestLB together with 6 other financial institutions;
vii) Al-Osaimi Real Estate (April 2006) - US$ 80 million 1 year commodity Murabaha arranged and underwritten by WestLB on a sole basis;
viii) Kuwait Finance House (April 2006) - US$ 850 million 5-year commodity Murabaha arranged and underwritten by WestLB together with 7 other financials institutions;
ix) Al Rajhi Banking & Investment Corp, Saudi Arabia (April 2006) - US$ 500 million 3-year fixed rate commodity Murabaha arranged by WestLB together with 5 other financial institutions.
www.westlb.com
Media contacts
Mark Lunn of Gavin Anderson & Co, London
Bahrain Tel: +973 17 566 000
UK Tel +44 (0) 20 7554 1400
UK Mobile: +44 (0) 7775 992 309
• Sukuk has a 5 year maturity
• 3 year put option at Investor's option
• 3 year call option at Issuer's option
• Proposed profit rate:
o Years 1-3: 6-month LIBOR + 125bps p.a.
o Years 4-5: 6-month LIBOR + 175bps p.a.
• SPV structure, with recourse to TID
• Freely transferable instrument in accordance with Sharia principles
• The Sukuk structure has been approved by the internal Sharia advisors of each of Investment Dar Co. and Unicorn.
• Investment Dar Co. has a rating of BBB from Capital Intelligence and A- from ICRA
About the Issuer
The Issuer is to be a special purpose vehicle incorporated in the Cayman Islands. It will be a single purpose company established with the sole purpose of issuing the Sukuk. The Issuer will act as agent of, and trustee for, the Investors.
About The Investment Dar Company
The Investment Dar Company K.S.C. (TID), a Kuwaiti shareholding company, was established in 1994 as one of the first specialised Islamic financing companies in the GCC to offer consumer facilities. TID began its operations in 1995 with a capital of KD15.8 million (US$54 million) and has since then experienced consistent and exponential growth, from its starting point in consumer financing activities.
Today, Investment Dar Co. employs a staff of over 400, and is a diversified holding company with interests in consumer finance, investment and investment management, asset management, banking, real estate, insurance, consulting services and logistics. As of 31 December 2005, Investment Dar Co. had total assets of KD670 million, or approximately US$2,295 million, with shareholders' equity of KD194 million (US$664 million). Its 2005 year-end revenues and net income reached KD121 million (US$414 million) and KD81 million (US$277 million), respectively. As of 1 June 2006, Investment Dar Co.'s market capitalization was KD613 million, or approximately US$2.1 billion.
As a result of its growth, Investment Dar Co. is currently one of the largest finance and real estate companies in Kuwait as well as in the GCC. It has achieved such growth while continuing to adhere to the principles of Islam in all of its activities. Moreover, Investment Dar Co. was the first Sharia-compliant company to obtain the ISO 9001 International Quality Standards Certification in 1999, which was upgraded to ISO 9001:2000 in 2005.
Investment Dar Co. is currently listed on the KSE, and its operations is well diversified between Kuwait, other GCC states with vision for MENA Region.
Investment Dar Co. has an issuer rating of A- by ICRA Limited, an Asian associate of Moody's Investor Service, and BBB long term rating by Capital Intelligence.
About Unicorn Investment Bank
Unicorn Investment Bank was capitalized at US$ 111 million and commenced operations on May 5, 2004 in the Kingdom of Bahrain. UIB is a full service Islamic investment bank, with specialist teams operating in corporate finance and capital markets, private equity, asset management, strategic mergers and acquisitions and Takaful (Islamic insurance). The bank currently has offices both inside and outside the Middle East, including the United States and Malaysia.
• In Quarter 1 of 2006, UIB achieved revenues of US$ 25.5m and earnings of US$ 16.02m.
• In its first eight months of business, UIB achieved revenues of US$ 36m and earnings of US$ 17.06m.
• UIB recently reported second-year revenues of US$ 52.6 m and earnings of US$ 24.2m for 2005 financial year.
• UIB has achieved a number of "firsts" in Islamic banking. In November, the Bank closed the "KSA Real Estate Fund-1", the first ever equity fund to allow non-Saudi nationals to invest in the growing Saudi Arabian property market via an innovative financial and legal structure.
• In December, UIB announced "Gulf Springs", the first pan-GCC real estate fund, in partnership with leading real-estate developers in each GCC market, who as founding investors, bring local knowledge and investment opportunities.
• UIB has recently closed "KSA MBS 1 International Sukuk," the GCC's first Sharia-compliant asset-backed security for the Kingdom of Saudi Arabia: a debt product designed for home financing companies akin to a mortgage-backed security in partnership with a multilateral organisation and underwritten by a global institution.
• UIB has completed several Private Equity investments in the United States including the US$32 million acquisition of Gardens Residential Care Centers in California, USA in 2004 and has just completed a US$7 million equity investment in Ellington-Elsasser, Inc. known by its trade name Ellington Leather Goods for 90% of the common shares. UIB's investment strategy is to exit within a 5 year period via a sale to a strategic or financial buyer
• Since inception, UIB has now advised, structured and successfully placed deals with a total value in excess of US$ 1 billion.
www.unicorninvestmentbank.com
About WestLB
WestLB AG is one of the largest banks in Germany, with total assets in excess of € 250 billion. WestLB is one of the leading arrangers of syndicated financing and capital markets transactions in the Middle East, with a particular expertise in Islamic financings.
According to Dealogic Loanware, WestLB was the No.1 mandated lead arranger and No. 1 bookrunner for syndicated Islamic financings in 2005 (based on number of facilities), and is currently ranked No. 2 mandated lead arranger for 2006 (year to date). WestLB has arranged over US$ 4 billion of Islamic financings in the last two years and highlights include the following transactions:
i) Arcapita Bank, Bahrain (October 2005) - US$ 200 million 5-year Sukuk Al-Murabaha arranged and underwritten by WestLB together with 2 other financial institutions;
ii) United Gulf Bank BSC, Bahrain (October 2005) - US$ 175 million 3-year commodity Murabaha arranged and underwritten by WestLB together with 3 other financial institutions;
iii) TSKB, Turkey (October 2005) - US$ 50 million 1-year commodity Murabaha arranged and underwritten by WestLB on a sole basis;
iv) Dolphin Energy, UAE (October 2005) - US$ 1,000 million Ijara facility jointly arranged by WestLB;
v) FFK Fon Leasing, Turkey (December 2005) - US$ 44 million capital goods Murabaha arranged by WestLB on a sole basis;
vi) Department of Civil Aviation, Dubai (April 2006) - US$ 1 billion 5-year Istisna/Ijara Sukuk arranged by WestLB together with 6 other financial institutions;
vii) Al-Osaimi Real Estate (April 2006) - US$ 80 million 1 year commodity Murabaha arranged and underwritten by WestLB on a sole basis;
viii) Kuwait Finance House (April 2006) - US$ 850 million 5-year commodity Murabaha arranged and underwritten by WestLB together with 7 other financials institutions;
ix) Al Rajhi Banking & Investment Corp, Saudi Arabia (April 2006) - US$ 500 million 3-year fixed rate commodity Murabaha arranged by WestLB together with 5 other financial institutions.
www.westlb.com
Media contacts
Mark Lunn of Gavin Anderson & Co, London
Bahrain Tel: +973 17 566 000
UK Tel +44 (0) 20 7554 1400
UK Mobile: +44 (0) 7775 992 309
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