News Column

Emaar set to raise $1.5b Islamic loan

May 28, 2014

Bloomberg News

Dubai:Emaar Properties, developer of the world's tallest skyscraper in Dubai, is raising a $1.5 billion Islamic loan to replace an older facility as interest rates decline, three bankers with knowledge of the matter said.

Dubai Islamic Bank, Mashreqbank, Noor Bank, National Bank of Abu Dhabi and First Gulf Bank are providing the loan, the bankers said, asking not to be identified because the information is private.

Emaar, which is planning an initial public offering of its malls unit later this year, will pay interest of 1.75 per cent on the seven-year Islamic facility, which will be used to repay a $980 million conventional and Islamic loan from 2011, the bankers said.

Companies based in the United Arab Emirates are seeking to benefit from falling interest rates and surplus cash at banks as the economy recovers from the credit crisis. Abu Dhabi's Emirates Steel Industries received more than $5 billion of bids for $1.3 billion in loans it sought in March, helping cut the price by a fifth, three people familiar with the deal said at the time.

"The firm is in the process of assessing and optimising capital structure," Emaar, controlled by Dubai's government, said.

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Source: Times of Oman

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