With a decline in its third-quarterprofit of 34%, Emaar can certainly use the proceeds of a Sukuk to refinance its debts and speculation has mounted this week after news reports claimed the developer was on the cusp of issuing an $800m Sukuk.
Three banks - Dubai Islamic Bank,Standard Chartered, and National Bank of Abu Dhabi - are at the front of thegrid as potential arrangers and local media claims that the proposed Sukuk would pay 3.5% above benchmark rate.
The financing, which is expected toinclude a five-year bullet loan and an eight-year amortizing facility, would bebacked by Emaar's Dubai Mall.
"Such details regarding our financingplans will be disclosed at the appropriate time", a spokesman for Emaar told The Islamic Globe. He continued: "Emaar continuously explores various optionsfor raising finance to meet our long-term development plans including[the]refinancing of [our] current debts."
Meanwhile,Dubai developer Nakheel is also considering issuing a second tranche on itsSukuk. The first tranche of $1bn was issued in August, a day after the companyannounced completion of its $16bn restructuring program, while the second isestimated at $272m. The Sukuk carries a 10% coupon.
© The Islamic Globe 2011
