Dubai-headquartered Joyalukkas, one of the world’s major jewelry retail chains, has raised a total amount of AED500 million through multiple banking arrangements. Part of this is an $80 million term loan with a five-year tenor.

At a signing ceremony held in Dubai to confirm the deal, Joy Alukkas, chairman and MD, 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 among banks and financial institutions. We would like to keep a very positive outlook in spite of the constantly changing market dynamics.”

The term loan has been arranged as a club deal with the UAE’s 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 — Sunil Kaushal, regional CEO Standard Chartered Bank, Africa and Middle East; John Lossifidis, Mashreq Bank’s EVP and group head of corporate and investment banking; and Jonathan Moris, head of wholesale banking, Emirates NBD.

Kaushal said: “Standard Chartered is pleased to be part of the Joyalukkas’ growth story and this facility is testament to our strong relationship of over 15 years with the group.”

Standard Chartered Bank was the originating, structuring and coordinating bank, and was also appointed as facility and security agent for the deal.

Lossifidis said: “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.”

Morris 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."