Jordan Times
Wednesday, December 22, 1999
Zara launches JD10m in fixed rate notes
AMMAN (J.T.) — Zara Investment (Holding) Company Ltd. on Tuesday launched JD10 million worth of fixed rate notes due 2004 in a private placement, according to a statement from the Export and Finance Bank.
The Export and Finance Bank acted as the sole lead manager of the issue, and will be the registrar and custodian of the notes.
The notes pay a coupon interest rate of 10 per cent per annum payable semi-annually on each June 21 and Dec. 21 throughout the five-year term. The notes are in registered form and will be listed for trading on the Amman Stock Exchange within the next 10 days.
The issue, which was fully subscribed, represents unsecured notes structured to give it marketability, liquidity and broad appeal. Fifty investors subscribed to the notes including six Jordanian banks, three insurance companies, six financial institutions and brokers, two savings funds, and 33 individuals and corporate entities.
The proceeds from the issue of the notes, along with proceeds from a capital increase, will be used for the provision of capital expenditure financing on projects currently in progress and to restructure the company's liabilities and begin paying down bank debt.
In addition, Zara intends to use the proceeds to finance future tourism ventures throughout the Kingdom.