Dec 20 2011 |
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UAE: Emaar signs Dh3.6 billion financing facility
By Issac John DUBAI - Emaar Properties , a leading Dubai-based developer, said on Monday that it signed a Dh3.6 billion Islamic and conventional financing facility with three banks.The finance is secured against its landmark property Dubai Mall, one of the world's largest malls, the developer said in a statement on Monday. The two-tranche facility is split between a five-year tranche and an eight-year amortising loan and carries a margin of 350 basis points.
Dubai Islamic Bank, National Bank of Abu Dhabi and Standard Chartered are providing the finance, Emaar said.
The developer said the drawdown of the facility would convert the company's debt's maturity profile from short to longer term.
"Of the total facility, 50 per cent 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 $300 million facility taken in 2010. Subsequent drawn downs will be made in 2012 as required," Emaar said in a statement.
" Emaar has again been amongst the first to raise an eight-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.
"The prevailing financial climate also offers a strong opportunity for forward-looking organisations to strengthen their reserves and structure long-term growth plans," said Alabbar.
Despite a deep property market downturn with home prices plunging 64 per cent since the mid-2008 peak, Emaar reported a net operating profit of Dh1.249 billion in the first nine months (January to September) of 2011.
Revenue for the first nine months of this year reached Dh5.873 billion. Its third-quarter profit dropped 34 per cent to Dh406 million compared to the same 2010 period as revenue declined and property delivery slowed.
Emaar 's Dubai Mall hosted 39 million visitors in first nine months while its hotel portfolio recorded average occupancy of 80 per cent.
© Khaleej Times 2011
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