Emaar Properties PJSC plans to sell as much as $2 billion of Islamic bonds, its first in more than six years, as the developer of the world’s tallest tower in Dubai taps appetite for higher-yielding assets.
The government-controlled company said Jan. 18 it will meet fixed-income investors in Europe, Asia and the Gulf for its bond program. The yield on Dubai’s 6.396 percent Islamic note due November 2014 fell to 6.32 percent, down 374 basis points from a record high of 10.06 percent on Feb. 15, according to Bloomberg data. Emaar’s sukuk will need to yield between 6.5 percent and 7 percent, said Silk Invest Ltd., a London-based fund that specializes in frontier markets.
Dubai World’s debt restructuring and a recovery in the emirate’s property market bodes well for growth, according to Silk Invest. Emirates Telecommunications Corp., the U.A.E.’s largest phone operator, and Dubai’s government also plan sukuk sales as near-zero interest rates in the U.S. and Japan drive investors to emerging markets. Net inflows into developing nation debt reached a record $53.1 billion in 2010, said Cambridge, Massachusetts-based research firm EPFR Global.
No comments:
Post a Comment