DUBAI: Conglomerate Dubai Investments may look to raise up to 1 billion dirhams ($272.3 million) in 2012 through sale of a sukuk, or Islamic bond, to finance the expansion of its manufacturing units and repay debt. The company, in which emirate's sovereign wealth fund Investment Corporation of Dubai (ICD) owns an 11.5-percent stake, is already in talks with an Italian lender for a $200 million loan and a sukuk issue will only be considered if the loan deal does not go through, Chief Executive Khalid bin Kalban told reporters on Wednesday. Dubai Investments is in discussions with two banks for the potential sukuk issue and a decision would be taken by the end of the year, Kalban added. He declined to name the lenders. "We have three options....first is the loan from the Italian bank. If that does not work, we will go for the sukuk and the final option is other commercial lending," said Kalban. "We need about 750 million dirhams...what we are hoping to raise is about one billion dirhams," said Kalban. Dubai Investments, which has interests in several sectors including property and manufacturing, swung to fourth-quarter loss last year as their manufacturing business was hit by political unrest in Libya and Syria. Part of the funds from the sukuk would be used for the expansion of Emirates Float Glass factory, the conglomerate's glass manufacturing unit. The company has invested 1.5 billion dirhams on its four glass factories so far and plans to invest an additional 800 million dirhams in 2013-2014. These units and their subsidiaries are expected to achieve sales worth 620 million dirhams this year, up from sales of 400 million dirhams in 2011, Dubai Investments said in a statement. The company expects the business to make sales of one billion dirhams in 2013-2014. In October, Dubai Investments said it had secured 700 million dirhams ($190.6 million) of a 1.2 billion dirham loan it wanted to raise to expand its operations. Shares of Dubai Investments ended 1.3 percent higher on the Dubai stock exchange on Wednesday. The stock has advanced 50 percent this year.
