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Press Release
Dubai, UAE; 22 November, 2015: Dubai headquartered, Joyalukkas, one of the world’s leading Jewellery retail chain has raised a total amount of AED 500 million through multiple banking arrangements. Part of this is a USD80 million term loan with a 5 year tenor.
At a signing ceremony held in Dubai to confirm the deal, Joy Alukkas, Chairman & 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 3 of UAE’s leading banks including: Standard Chartered Bank (SCB), Emirates NBD, Emirates Capital Ltd 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, Mr. Sunil Kaushal Regional CEO Standard Chartered Bank, Africa and Middle East; Mr. John Lossifidis, Mashreq Bank’s Executive VP and Group Head of Corporate and Investment Banking; and Mr. Jonathan Moris, Head of Wholesale Banking, Emirates NBD.
Sunil Kaushal, Regional CEO, Standard Chartered Bank, Africa and Middle East said: “Standard Chartered is pleased to be a part of the Joyalukkas’ growth story and this facility is testament to our strong relationship of over 15 years with the Group. We are committed to offering innovative financial solutions, catering to our clients’ diverse financial needs and are confident the transaction will enhance Joyalukkas’ competitiveness and financial performance in the market.”
Standard Chartered Bank was the Originating, Structuring and Coordinating bank, and was also appointed as Facility and Security Agent for the deal.
Mr. Lossifidis, speaking at the signing ceremony said: “We are pleased to work together with Joyalukkas and the other banks to achieve a successful close to this important transaction. Despite the market challenges, this financing has been arranged to support Joyalukkas with its expansion strategy, which is testament to the valuable relationships the Group has cultivated with its banking partners.
Speaking on the occasion, Jonathan Morris – Group Head of Wholesale Banking at Emirates NBD, said: “We are pleased to participate in this transaction for Joyalukkas, which is long established as one of the most respected brands in the gold sector. We believe that the loan facility will serve to further support Joyalukkas’ financial position and allow the group to capitalise on the tremendous growth opportunities facing the company.”
The strategic objective for Joyalukkas to take up this facility, is the opportunity to refinance and reduce their borrowing costs based on the prevailing Libor rates. Joyalukkas Group is the largest, single-owned jewellery retail chain in Middle East and India, which has built a strong reputation world-wide over the last 28 years. The renowned jewellery retailer is currently spread across 10 countries with a chain of over 110 showrooms and has a strong professional team working under the direction of the visionary entrepreneur Joy Alukkas.
The globally renowned brand, caters to over 10 million loyal customers and has a workforce of over 7,000 employees around the world. Joyalukkas is planning to expand their current network in Saudi Arabia and Qatar and also proposes to establish their presence in the USA in the near future.
