Dawood Hercules Corporation Limited (DHCL) recently announced that the company’s board had given the go-ahead to raise investments of Rs. 7 billion and Rs. 6 billion.
Back in September, it was announced that DAWH planned to raise Rs 6 billion from Islamic Sukuk for a duration of five years.
The company will raise funds in the form of Rated, over the Counter Listed and Secured Sukuks (Islamic Bonds) under Section 66 of the Companies Act 2017 and the regulations governing Over the Counter (OTC) market under Schedule III (Listing of Debt Market Securities Issued to Qualified Institutional Buyers (QIBs) through Private Placement) to the extent of Rs. 7 billion for a period of five years.
The funds from the Sukuks will be utilized for debt re-profiling and general company operations. JS Bank has been awarded the mandate for this transaction and will act as the Exclusive Advisor and Arranger for the issue.
They will also procure Term Finance Facility (TFF), being a combination of Islamic and Syndicate Finance, up to an amount of Rs. 6 billion for a period of five years. The funds will be utilized for investment purposes.
Dubai Islamic Bank, Allied Bank Limited and MCB Bank Limited (being part of consortium and syndicate) have been mandated for this transaction.
In August 2017, DAWH, in partnership with Edotco, entered into an agreement with Veon Pakistan Limited to acquire its wireless tower business in Pakistan for $940 million.
DAWH is an investment holding company with a range of business interests from food, fertilizer, chemical manufacturing and storage, energy and information technology.