Jafza secures US$1.2 billion dollar loan

Firm plans to sell UK-based warehouse developer Gazeley.
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By: Reuters

Dubai's Jebel Ali Free Zone (Jafza) has been awarded a US$1.2 billion sharia-compliant loan from eight banks, to help refinance a debt commitment, Reuters reported today.

The company said in a statement that the Islamic financing loan, along combined with a $650 million sukuk that was completed lately, will be used to repay a $2bn-equivalent Islamic bond due later this year. The facility is due to mature in 2020.

The company also revealed that Economic Zones World (EZW), Jafza’s parent company, is considering the sale of UK-based warehouse developer Gazeley.

EZW has committed up to $300 million for JAFZA from the proceeds raised by the Gazeley sale, and should the sale be completed, funds will be used to part-repay the bank facility, the statement added.

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