* Dubai's JAFZA mandates seven banks for new sukuk
* Proceeds to help part-repay existing 7.5 bln dirhams
Islamic bond
* Investor meetings start June 5
(Adds details)
DUBAI, June 1 (Reuters) - Dubai's Jebel Ali Free Zone
(JAFZA) has picked seven banks to arrange a new Islamic bond,
lead managers said on Friday, with at least $500 million likely
to be raised to part-repay the firm's 2012 sukuk obligation.
Along with a $1.25 billion sukuk issued by another
state-owned entity, DIFC Investments, due in June, the JAFZA
redemption was considered crucial to assess the ability of Dubai
Inc firms to meet their debt maturities.
Dubai is trying to rebuild credibility with investors who
fled the region after state-owned conglomerate Dubai World
shook markets in 2009 with plans for a $25 billion
debt restructuring.
JAFZA, fully-owned by the Dubai government, mandated Abu
Dhabi Commercial Bank, Abu Dhabi Islamic Bank
, Citigroup, Dubai Islamic Bank,
Emirates NBD, National Bank of Abu Dhabi and
Standard Chartered to arrange a series of roadshows, a
document from the lead banks said.
The investor meetings will begin on June 5 in the United
Arab Emirates and then take in Singapore and Hong Kong on June 7
and 8 respectively. Two days of roadshows will also be held in
London on June 11 and 12.
A benchmark-sized sukuk will be issued subject to market
conditions, the document added, with any issue to come from the
JAFZ Sukuk (2019) special purpose vehicle - indicating a
seven-year sukuk is being proposed.
Benchmark-sized is understood as at least $500 million.
The proceeds from the issue will be used to help refinance
the 7.5 billion dirhams ($2.04 billion) sukuk which had been due
to be repaid in November, a source with knowledge of the matter
said. Bondholders voted last week to allow JAFZA to repay the
deal early.
Repayment of the sukuk will come through a mixture of a
loan, a sukuk and internal cash.
[ID: RLPC-Dubai's JAFZA eyes loan launch-bankers March 27]
(Reporting and writing by David French)