Arqaam Capital arranges US$30m pre-ipo exchangeable sukuk for Virgin Mobile Middle east and Africa

Thursday, May 10, 2018

Virgin Mobile Middle East & Africa (VMMEA), the region’s leading Mobile Virtual Network Operator (MVNO), has successfully closed a US$ 30M Pre-IPO Exchangeable Sukuk.

The Senior Secured Sukuk certificates are structured based on Shariah principles. In the event of an IPO, the certificates will transfer into an exchangeable Sukuk, maturing 2 years from the IPO date.

Arqaam Capital Limited acted as the sole Lead Arranger and Bookrunner for this Sukuk transaction.

Franklin Templeton Investments (ME) Limited and Sancta Capital Group acted as anchor investors in the transaction.

Alan Gow, CEO of VMMEA, commented: “We are delighted to raise this funding to support the continued growth and expansion of the Company in the Middle East and North African markets. The telecom sector in the region remains an attractive sector and as the Company has demonstrated in its existing markets, we are uniquely positioned to leverage the MVNO model to deliver growth and financial performance in new markets.

Peter Langkilde, Chairman of VMMEA commented: “We are pleased to complete this transaction after carefully exploring appropriate funding routes in line with the company’s preparations for a potential public markets listing. The strong demand for the Sukuk certificates underscores investors’ confidence in VMMEA’s growth and expansion plans.”

Rony Jawhar, Managing Director at Arqaam Capital Limited, commented: “Arqaam Capital is always seeking innovative structures to enhance our clients’ growth prospects and help them achieve an optimal capital structure. This high-profile transaction is a testament to our structuring and distribution capabilities, and we are very pleased to have been able to successfully raise the proceeds for Virgin Mobile Middle East & Africa amidst a volatile environment.”

Notes to Editors:

This announcement does not constitute or form a part of any offer or invitation to sell or any solicitation to purchase or subscribe for securities. No action has been taken or will be taken that would permit a public offering of the securities to which this announcement relates in any jurisdiction in which action for that purpose is required. No offers, sales, resales or delivery of any securities or distribution of any offering material relating to such securities may be made in or from any jurisdiction except in circumstances which result in compliance with any applicable laws and regulation.

About Virgin Mobile Middle East & Africa

Virgin Mobile Middle East & Africa is part of the Virgin family group of companies. Virgin Mobile Middle East & Africa is responsible for all Virgin Mobile operations in the Middle East and Africa region, and is headquartered in Dubai, UAE.

Virgin Mobile Middle East & Africa has been in the region since 2007, and operates the two consumer brands of Virgin Mobile and FRiENDi Mobile across the region. Partnering with telecoms operators across the region, the Virgin Mobile Middle East & Africa team provides customers with innovative products and packages designed to make their mobile experience better. We work closely with other Virgin companies across the world to make sure we can create experiences for our customer’s which surprise and delight them, and which can’t be matched.

Virgin Mobile Middle East & Africa believes in having the best people on the team, and the management team is made up of senior level team members from a variety of successful regional and global mobile operators, as well as from MVNOs. The company has a strong financial foundation supported by well-respected and global and regional shareholders, including Virgin Group, GIC, ePlanet Capital, Dolphin International, NTEC, and members of the senior management team

About Arqaam Capital

Arqaam Capital is a specialist emerging markets investment bank, bringing regional and international product offerings to the emerging markets. Arqaam Capital combines international best practice with expertise in the markets in which we operate. Our primary role is to provide financial intermediation and create investment opportunities for emerging markets investors looking to invest in their own markets and abroad, as well as international investors seeking opportunities in target emerging markets. Arqaam Capital operates out of three hubs, namely the Dubai International Financial Centre (DIFC), Cairo and Johannesburg. Arqaam Capital has ten business lines -Corporate Finance, Asset Management, Cash Equity, Credit Trading, Equity Derivatives, Capital Markets Advisory, Infrastructure, Principal Finance, Treasury and Custody. In addition, Arqaam Capital provides in-depth research on 300 listed Middle East and Africa (MEA) companies across 27 countries and a wide-range of sectors, including the largest global coverage of MENA equities.

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