Virgin Mobile Middle East and Africa closes $30 million pre-IPO exchangeable Sukuk

Virgin Mobile Middle East and Africa closes $30 million pre-IPO exchangeable Sukuk
Regulation around MVNOs can be complicated to say the least.
Published: 11 May 2018 - 5:36 a.m.
By: Georgina Enzer

Mobile Virtual Network Operator (MVNO), Virgin Mobile Middle East & Africa (VMMEA), has successfully closed a $30 million 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 two years from the IPO date.

“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,” Alan Gow, CEO of VMMEA said.

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.


“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,” said Peter Langkilde, Chairman of VMMEA.

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