Damas Group, the leading jewellery retail chain in the UAE, Middle East and South Asia, announced that the syndication it has floated in association with top international banks BNP Paribas (the book runner and mandated lead arranger) and Gulf International Bank was oversubscribed and has generated $255 million at an impressive pricing of Libor plus 1.30% per annum. The fund will be used to boost growth and consolidate regional and international presence of Damas.
The announcement was made by Tawhid Abdullah, Managing Director of Damas together with PK Dutta, CFO, Damas; Michael Pereira, Head of Territory, BNP Paribas; and Abbas Ameeri, Managing Director for Merchant Banking, Gulf International Bank, during a press conference on Damas strategic initiatives held at Jumeirah Emirates Towers.
Damas Group plans to utilize the raised amount to propel future growth and expand its regional and international retail base. With a turnover of over $1 billion, the Group has demonstrated rapid growth doubling its turnover from 2004 to 2006.
Tawhid Abdullah foresees the expansion of the retail chain as very profitable and will contribute substantially to the bottom line.
“This is a strategic move to spread the risk and rewards of our operations. With the economy booming in most parts of the world, particularly in South Asia and the Middle East, the expansion will offer a good chance to increase the brand capitalization of Damas, while adding to itsprofitability. To augment further growth, the Group will actively consider floating an IPO in the near future,” he commented.
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