A statement from Dubai property giant on Monday indicated that Emaar Properties had signed a new Islamic and conventional financing facility worth AED3.6bn ($1bn) with Dubai Islamic Bank and National Bank of Abu Dhabi as mandated lead arrangers and bookrunners.
The facility will have the effect of reducing Emaar's short-term debt burden by lengthening its maturity profile. 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. Some 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 350bps and is secured on The Dubai Mall. The facility will be used to repay an existing $300m facility from 2010.
Emaar chairman, Mohamed Alabbar, said: "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 Islamic Globe 2011
