Joy Alukkas (third left) with senior bankers among others at the signing ceremony held in Dubai recently.
Dubai-headquartered leading jewellery retail chain Joyalukkas has raised a total amount of AED500mn through multiple banking arrangements. Part of this is a $80mn term loan with a five year tenor.
At a signing ceremony held in Dubai to confirm the deal, Joy Alukkas, chairman and managing director, Joyalukkas Group, said, “The added funding will help us to take the cost advantage of the current rate of interest. I also feel this proves our ‘trust’ quotient amongst banks and financial institutions. We are glad we have been maintaining a strong financial position and good track record amongst everyone who deals with us. Lastly, we would like to keep very positive outlook in-spite of the constantly changing market dynamics because there is always some form of opportunity.”
The term loan has been arranged as a club deal with three of UAE’s leading banks including Standard Chartered Bank, Emirates NBD, Emirates Capital and Mashreq bank.
Hogan Lovells acted as the lenders’ counsel for the deal. The term loan was signed in the presence of senior management from the participating banks; Sunil Kaushal, regional CEO, Standard Chartered (Africa and Middle East); John Lossifidis, Mashreq executive vice-president and group head (Corporate and Investment Banking); and Jonathan Moris, head (Wholesale Banking) Emirates NBD.
The “strategic objective” to take up this facility, Joyalukkas said was the “opportunity to refinance and reduce their borrowing costs” based on the prevailing Libor rates. The jewellery retailer is currently spread across 10 countries with a chain of more than 110 showrooms.
