Wednesday 29 September 2010

FT.com - Dubai’s Emaar to launch $375m bond

Dubai’s Emaar Properties is set to launch a convertible bond of $375m with an option up to $500m, as the real estate company seeks to bolster its finances amid a continuing property slump in the emirate, people aware of the matter say.

The five-year bond, with indicative pricing of 7.25-8.25 per cent, has received strong interest, two people involved in the deal say. The conversion premium is 20-30 per cent.

The property giant, which drove the growth of the real estate market after the emirate opened to foreigners in 2003, has weathered the Dubai financial crisis better than other developers. But it remains affected by the real estate crash, which has seen valuations at least halved since 2008.

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