By Sachin Kumar
DOHA: Qatar’s real estate major Ezdan Holding Group will raise $2bn through Sukuk issuance. Of this total amount sukuk worth $500m will be issued in May or June this year. The Ordinary and Extraordinary General Assembly of Ezdan Holding Group yesterday approved recommendation of Board of Directors for issuance of Sukuk worth $2bn.
“We are satisfied with the solid financial position of the Group, which has witnessed tremendous growth in the pace of our record profitability. We are working to develop a realistic new investment operations to emphasise our presence in the various investment sectors, using several mechanisms, including the issuance of Islamic Shariah-complaint bonds (Sukuk) worth $2bn,” said Sheikh Dr Khalid bin Thani bin Abdullah Al Thani, Chairman of Ezdan Holding Group. “Such vision came after we have meticulous study and our participation in a number of local and international conferences dealing with Islamic finance industry in the contemporary world. In addition to all that, we have been keen to focus on using the best Islamic financing practices, including Islamic bond,” he added.
The group is expecting to finish first phase affordable housing mega project in Al Wukair by the end of December this year or January 2017.
The chairman noted that the Group’s performance over 2015 was exceptional in terms of increasing profits despite the challenges that gripped several markets in the region due to the plunging oil prices and falling stock markets. “We seek, through this move, to promote Islamic finance culture in the whole world, and to make Qatar one of the developing nations of this vital sector, noting that investing in Sukuk would minimise risk rates and raise cash-flow within the Group,” said the Chairman.
Speaking on the sidelines of the meeting, Ali Mohammed Al Obaidli, CEO, Ezdan Holding Group, said the fund raised through sukuk will be utilised for financing company’s projects. “We got approval for sukuk today and in the first phase we plan to raise $500m by issuing sukuk in May or June this year,” he said.
The CEO said that the work on affordable housing project in Al Wukair is ongoing. “We are constructing megaproject which is spread across 1 square kilometers and has 8,500 vilas and apartments, 700 shops, a hypermarket and two schools,” said Al Obaidli.
He added that groups two malls, one in Al Wakra and another in Al Wukair, are expected to be ready in the current year.
Sheikh Dr Khalid stated that Ezdan Holding Group has been in the lead, following the footsteps of the state leadership and adopting its vision in supporting the national economy. He said that the Group will spare no effort to presents its success achieved to the nation and society, and that such success is added to the national work record and honorable history. “ Ezdan will remain committed to its promises towards the community in the allocation of permanent fund to support the charitable work out of its profits, through the endowment of up to 22.8 percent of the Group shares by Sheikh Thani bin Abdullah Al Thani. Such initiative is regarding the first of its kind in Qatar,” he added. The assembly also endorsed the recommendation of the Board of Directors regarding the distribution of 5 percent cash dividends to shareholders at the rate of 50 dirhams per share.
The Peninsula
