Emaar Properties signs new AED 3.6 billion (approx. US$ 1 billion) financing facility; a testament to Emaar’s financial strength
Press release
Emaar Properties
Emaar Properties has signed a new Islamic and Conventional financing facility amounting to AED 3.6 billion (approx. US$ 1 billion) with Dubai Islamic Bank, National Bank of Abu Dhabi and Standard Chartered Bank as Mandated Lead Arrangers and Bookrunners.
As part of the overall debt management for the Company, the drawdown of the facility will convert the Company’s debt’s maturity profile from short to longer term. This new facility will also assist in reducing the overall financing cost of Emaar due to the lower pricing achieved compared to existing borrowings.
Of the total facility, 50% is repayable in a bullet repayment after five years, and the rest is amortized over eight years. The pricing on the facility is benchmark plus 350 basis points and is secured by The Dubai Mall. Initially, the facility will be utilised to repay the existing US$ 300 million facility taken in 2010. Subsequent drawn downs will be made in 2012 as required.
Mr Mohamed Alabbar, Chairman, Emaar Properties PJSC, said that the financing arranged is a further testament to Emaar’s ability to raise long term finance at competitive pricing even in tougher economic conditions. “Emaar has again been amongst the first to raise an 8-year financing in the regional markets with the assistance of our core partner banks, which reflects the superior value Emaar has created for its stakeholders through its iconic developments.
He added: “The prevailing financial climate also offers a strong opportunity for forward-looking organisations to strengthen their reserves and structure long-term growth plans.”
Emaar reported a net operating profit of AED 1.249 billion (US$ 340 million) in the first nine months (January to September) of 2011. Revenue for the first nine months of this year reached AED 5.873 billion (US$ 1.599 billion).
The nine-month performance of Emaar was underlined by the sustained growth of its hospitality & leisure and shopping malls & retail subsidiaries, the continued demand for homes and commercial space within its established communities such as Downtown Dubai, and the hand-over of prime real estate assets in international markets, including Turkey, Jordan and Syria. Emaar is on track to hand over residential projects in Saudi Arabia, among other global markets, shortly.
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Background Information
Emaar Properties
Emaar Properties is one of the world’s most valuable and admired real estate development companies. With proven competencies in properties, shopping malls & retail and hospitality & leisure, Emaar shapes new lifestyles with a focus on design excellence, build quality and timely delivery.
Dubai Islamic Bank
Since its formation in 1975 as the world’s first full-service Islamic bank, Dubai Islamic Bank has established itself as the undisputed leader in its field, setting the standards for others to follow as the trend towards Islamic banking gathers momentum in the Arab world and internationally.
Standard Chartered Bank
We offer banking services that help people and companies to succeed, creating wealth and growth across our markets. Our heritage and values are expressed in our brand promise – Here for good.
With more than 86,000 employees and a presence in 60 markets, our network serves customers in close to 150 markets worldwide. We're listed on the London and Hong Kong Stock Exchanges as well as the Bombay and National Stock Exchanges in India.
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