Kuwait's Dubai-listed Al Mazaya inks $137m in Islamic finance deals
Real estate developer's announcement follows separate financing deals worth $90.4m in May 2019
Kuwait-headquartered real estate developer Al Mazaya Holding has inked Islamic financing agreements with a local bank worth $136.6m (KD41.5m) weeks after it announced separate financing agreements worth $90.4m (KD27.5m) on Dubai Financial Market, where it is listed.
In a missive to the Dubai bourse, Al Mazaya said the funds would be used for the “refinancing and reprofiling [of] existing outstanding facilties utilised by the group over past years”.
The group’s real estate operations and investments will also be financed under the deal, which is expected to improve cash flows and liquidity, and support Al Mazaya's “ability to fulfil its commitments towards its operations, real estate projects, and other creditors as well”.
The name of the participating bank was not listed in the group’s bourse missive.
The agreements come after a financially lacklustre year for the group in 2018.
In March 2019, the developer reported net profits of $19.2m (KWD5.8m) for the 12 months ending 31 December, 2018, a 42% decline on 2017’s corresponding figure of $27.5m (KWD8.3m).
In an Arabic-language statement released on the company’s website, Ibrahim Abdulrahman Al Saqabi, chief executive officer of Al Mazaya Holding, said sales revenues were affected by a decline in the regional markets that the developer operated in.
Among the Al Mazaya Holding projects that progressed in 2018 was the Mazaya Downtown scheme in Al Sharq, Kuwait, on which Pace has worked with the development company.