Jul 12 2012
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Emaar Properties PJSC successfully executes its second international fixed-income Sukuk offering of US$500 mn
Emaar Properties PJSC (" Emaar "), rated Ba3/BB, has successfully priced its second international fixed-income Sukuk offering, raising US$ 500 million via the issuance of trust certificates with a maturity of 7 years at a yield of 6.400%.
Emaar has successfully executed its first public offering since January 2011 through the issuance of a very well-received US$ 500 million Sukuk. The transaction, which was structured as a Sukuk al-Ijarah and issued through a special purpose vehicle ( Emaar Sukuk Limited), constitutes the second drawdown under the company's recently updated US$ 2 billion Trust Certificate Issuance Programme.
Mohamed Alabbar, Chairman, Emaar Properties PJSC, said: "We are delighted that the Emaar Sukuk was well received by the regional and international fixed income investors. The fact that investors have responded so positively to our third transaction in the international debt capital markets is a testament to Emaar 's value proposition and the credit standing of the company in the financial markets. The funds raised through the Sukuk will be used to implement our funding strategy and extend our debt maturity profile. The success of this issuance reflects the confidence investors have in our long term strategy and Emaar 's ability to implement it."
Following a series of investor meetings arranged in London, Emaar was able to capitalise on the positive investor feedback, conducive market environment and strong demand for Shariah-compliant offerings to raise US$ 500 million from the international capital markets. Abu Dhabi Islamic Bank, Al Hilal Bank, Barwa Bank, Dubai Islamic Bank PJSC, Emirates NBD Capital, HSBC, Noor Islamic Bank and Standard Chartered Bank acted as joint bookrunners on the offering.
Ultimately, the distribution profile was very well balanced, with European investors allocated for 38% of the transaction, while Middle East, Asian and US (offshore) investors accounted for 48%, 13% and 1%, respectively, of the issuance. In terms of investor type, the offering was distributed as follows: 47% for Fund Managers, 40% for Banks, 7% for Private Banks and 6% for others.
Emaar Properties PJSC, listed on the Dubai Financial Market, is a global property developer with a significant presence in key emerging markets in the Middle East, North Africa and Asia. Besides building residential and commercial properties, the company also has proven competencies in shopping malls & retail, hospitality & leisure and financial services sectors. Burj Khalifa , the world's tallest building, and The Dubai Mall , the world's largest shopping and entertainment destination, are some of Emaar 's trophy developments.
Emaar has launched a new wholly-owned subsidiary, Dawahi Development, a next-generation developer of 'value housing' projects within full-service community developments. Dawahi Development will develop 'value homes' at attractive price points in key emerging markets across the Middle East & North Africa region, while also creating robust employment and business opportunities for the local population.
In Saudi Arabia, Emaar is developing King Abdullah Economic City, the region's largest private sector-led project in Saudi Arabia, featuring a Sea Port, Central Business District, Industrial Zone, Educational Zone, Residential Communities and Resort District. www.emaar.com.
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