Tamweel postpones $235m sukuk sale

Dubai, July 4, 2012

Islamic mortgage lender Tamweel has decided to delay the sale of a $235 million sharia-compliant asset-backed securitisation after taking feedback from the market, the company said in on Wednesday.

Investors and traders in the Gulf region said the deal structure was too complex by regional standards, which has only ever seen one previous Islamic asset-backed transaction.

"Tamweel has decided not to proceed with the RMBS (residential mortgage-backed securities) at this time based on market feedback," the company said in a bourse statement.

Tamweel, a unit of Dubai Islamic Bank, completed roadshows for a potential deal at the end of June, which would have been backed by properties and receivables located in Dubai.

Abu Dhabi Commercial Bank, UBS and Emirates NBD were lead managers on the deal, which would have been a rare example of a securitisation from the Gulf Arab region.

Tamweel shares closed 2.4 per cent higher on the Dubai bourse before the sukuk announcement. – Reuters

Tags: Dubai Islamic Bank | Tamweel | sukuk | Mortgage | Sharia |