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Thursday, 11 August 2011

gulfnews : Tamweel in debt market for first time since 2008

Tamweel PJSC, the mortgage company majority owned by Dubai Islamic Bank PJSC, plans to tap the debt market this year for the first time since 2008 as demand for Islamic bonds keeps borrowing costs near six-year lows.

Tamweel will issue either a benchmark-sized sukuk or a mortgage-backed security in the fourth quarter to create a, 'long-term financing pipeline to repay liabilities and grow the business,' acting chief executive officer Varun Sood said. Tamweel has appointed banks for the transaction, he said, declining to identify them.

'We're being advised that it's a good time to go to the market in spite of the financial turmoil,' he said in an interview at Tamweel's headquarters in Dubai yesterday. 'Maybe there would be some impact on pricing, but there's still demand for Islamic financing instruments.'