Spinneys to raise $180m for expansion

Middle East supermarket giant Spinneys Group signed a deal on Monday for an $80 million loan with National Bank of Dubai (NBD) as part of its $180 million fundraising programme to finance expansion plans.

The four-year loan agreement with NBD is the first phase in the group's borrowing plan.

A $100 million preference share issue will ‘follow shortly', a statement said, for which NBD Investment Bank will serve as the sole placement agent.

Spinneys is planning an aggressive expansion in 11 countries across the Middle East, North Africa and South Asia (MENASA) region.

It has already signed deals to open stores in Jordan, Pakistan and Qatar, and is in the advanced stages to launch joint venture projects in Algeria, India, Iraq, Kazakhstan, Kuwait, Libya, Saudi Arabia and Syria.

The retailer is also in negotiations to expand its presence in its existing markets. It currently operates stores in Egypt, Lebanon the UAE.

Dubai-based Abraaj Capital - the equity firm that is managing shareholder of Spinneys Group - is overseeing the expansion plans.

"The opportunities in the retail segment across the MENASA region have never been greater, and this injection of funds will allow us to increase our presence significantly and rapidly, taking advantage of the many opportunities that are out there within the wider region," said Waqar Siddique, Spinneys Group board member and executive director of Abraaj Capital.

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