Lulu Group International, a UAE-based operator of one of the Middle East’s largest hypermarket chains, is raising Dh10 billion ($2.72 billion) to refinance debt ahead of a potential initial public offering, according to its spokesperson.
The conglomerate is borrowing funds from Abu Dhabi Commercial Bank, Dubai Islamic Bank, Emirates NBD Bank and Mashreq Bank. The loans have an average maturity of 10 years.
“We are pleased to secure this substantial syndicated loan, which underscores the confidence our financial partners have in our vision and strategy,” the spokesperson of Lulu Group told Khaleej Times.
“This injection of funds will empower us to pay off existing debts, further extend our footprint with 80 new hypermarkets across the GCC, Egypt, and beyond, and enhance supply chain networks and e-commerce capabilities which will contribute positively to the economies in which we operate.
“Lulu Group’s commitment to delivering exceptional value to its customers remains unwavering. With a reputation built on quality, innovation, and customer-centricity, the company is poised to capitalize on emerging opportunities and elevate its global presence to new heights with our IPO plans.”
This year, the company is expecting a growth of around 15 per cent.
In 2020, an investment firm backed by Abu Dhabi royal family bought a 20 per cent stake in the conglomerate by investing $1 billion in the mall operator founded by Indian entrepreneur Yusuff Ali.
Lulu Group operates in 23 countries located across the Middle East, Asia, the US and Europe and has an annual turnover of around $8 billion and a staff force of more than 5,000.