Dubai's Jafza repays US$2bn Islamic bond
Dubai state-owned industrial hub Jebel Ali Free Zone (JAFZA) repaid in full a AED7.5bn (US$2.04bn) Islamic bond, or sukuk, on June 21, five months ahead of maturity, a regulatory filing from the company said on Sunday.
The early redemption of the sukuk certificates was expected after the company, a unit of state conglomerate Dubai World , secured agreement from bondholders to change the terms of the notes last month.
The sukuk was refinanced through a US$1.2bn sharia-compliant loan, along with a new sukuk issue of US$650m and the company's own cash resources.
The timely repayment of JAFZA's sukuk was a major investor concern this year, but early redemption has helped lift confidence in the emirate's credit story, as demonstrated by a strong rally on Dubai sovereign and government-related bonds last week.