Emaar considers new sukuk to fund projects

Emaar Properties, Dubai’s biggest listed developer, is looking to issue a new Islamic bond as it seeks to raise funds to deliver billions of dirhams worth of projects.

In a statement to the Dubai bourse on Wednesday, the Burj Khalifa builder said it had selected 10 banks to act as joint lead managers and book runners to drum up interest for a possible dollar-denominated sukuk.

Emaar said it had selected Standard Chartered to act as sole global coordinator. Alongside Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Gulf Bank, Mashreq, National Bank of Abu Dhabi, Noor Bank and Union National Bank, the lender will arrange a series of meetings in Asia, the Middle East and Europe for potential investors.

The meetings, looking to raise interest in the Regulation S senior sukuk, will start on Sunday.

Like many of Dubai’s developers, Emaar has used bonds to fund a number of its key projects.

The company issued a US$500 million convertible bond in 2010 with an initial conversion price of Dh4.75 a share.

In July, Emaar said it had a backlog of projects to be delivered over the next three to four years to the tune of Dh45.9 billion.

In the first half of this year, sales of its properties in Dubai were 45 per cent higher than the previous year at Dh8.85bn, as the company embarked upon a flurry of new sales launches for projects.

These properties include The Address Residences Dubai Opera and Il Primo towers in the new Opera District in Downtown Dubai, the Fairway Vistas and the Sidra villas communities in Dubai Hills, the 52/42 towers in Dubai Marina and the Harbour Views towers in Dubai Creek Harbour.

lbarnard@thenational.ae

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