Denis Opudo
Any company is always happy when there is financial fluidity in its management. We have always believed that even in a case where a company has good ideas and management skills, without the required finance it will not be easy for it to run its operations. In many cases, companies have collapsed in the past due to lack of enough capital to run its operations. This is why many companies have set up the best ways of securing funding. This is aimed at helping them run their operations smoothly.
Part of Virgin Mobile Middle East and Africa (VMMEA) that is under the ownership of British entrepreneur Richard Branson’s Virgin Group has secured $30 million. This came from Islamic bonds before the proposed initial public offering (IPO). VMMEA is a Dubai based company. VMMEA is a mobile virtual network operator that has its offices in South Africa, Saudi Arabia, and Oman. This will indeed be a unique addition to the market that is traditionally filled by Sukuk originated by financial and sovereigns companies. Furthermore, the transaction comes with a novel convertible feature that helps investors in transferring the Sukuk certificates into exchangeable commodities that will take two years to mature after an Initial Public Offering (IPO).
Templeton Investments Middle East and Sancta Capital Group which are alternative investment companies took part as anchor investors. The deal was organized by Arqaam Capital. The rest of Sukuk first insurers are planning to tap the market by the end of this year. Alizz Islamic Bank from Oman is putting up retail Sukuk program worth $260 million (100 million rials). On the other side, Manazel Real Estate from Abu Dhabi is planning to raise not less than 708 million (2.6 billion dirhams) through Sukuk.
