Tuesday 29 June 2021

#Dubai's Emaar Properties secures $500 million via Islamic bonds | Reuters

Dubai's Emaar Properties secures $500 million via Islamic bonds | Reuters

Emaar Properties (EMAR.DU), Dubai's largest listed property developer, sold $500 million in 10-year sukuk, or Islamic bonds, at 3.7% on Tuesday after they drew more than $3.3 billion in orders, a document showed.

The sukuk were tightened from an initial price guidance of around 4.25%, a document from one of the banks in the deal showed.

Dubai Islamic Bank (DISB.DU), Emirates NBD Capital (ENBD.DU), First Abu Dhabi Bank (FAB.AD), Mashreqbank (MASB.DU) and Standard Chartered (STAN.L) arranged the deal.

Reuters reported early this month that Emaar had hired banks to arrange a dollar sukuk sale. read more

The builder of the world's tallest building, Dubai's Burj Khalifa, last issued international bonds in 2019, raising $500 million via sukuk.

S&P Global Ratings downgraded Emaar to a BB+ "junk" rating last July as the real estate and retail sectors were slammed by the COVID-19 pandemic and related restrictions.

Emaar, which is 29.22% owned by state fund Investment Corporation of Dubai, last month reported an 8% rise in first-quarter net profit to 657 million dirhams ($178.88 million), which founder Mohamed Alabbar said was "comparable" with pre-pandemic results in 2019.

The company and its subsidiaries have outstanding debt of about $816 million, Refinitiv data shows.

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