Home Industry Real Estate Emaar Launches $500m Sukuk The Dubai-based developer has selected seven regional and international banks for investor meetings in London. by Reuters July 11, 2012 Dubai real estate developer Emaar Properties launched a $500 million seven-year sukuk at a profit rate of 6.4 per cent on Thursday, arranging banks said. Emaar, builder of the world’s tallest tower, Burj Khalifa, is seeking to take advantage of tightening spreads to raise cheap financing as well as strong global demand for sukuk. Final pricing is due later in the day, with order books said to be in excess of $4.5 billion. Pricing at launch for the sukuk was tighter than guidance released on Wednesday, signalling strong appetite for the deal. Yields on Emaar’s existing $500 million sukuk, issued early in 2011 at 8.5 per cent and maturing in 2016 have tightened since the borrower announced pricing for its latest issue. The outstanding sukuk was bid at 109.5 cents on the dollar on Thursday morning, to yield about 5.8 per cent, tighter from about 6.1 per cent on Tuesday, according to Thomson Reuters data. Market sources said the existing 2016 deal offers more value compared with the upcoming 2019 bond which carry an extended three-year maturity. Abu Dhabi Islamic Bank, Standard Chartered Plc, HSBC Holdings, Abu Dhabi’s Al Hilal Bank, Qatar’s Barwa Bank, Emirates NBD, Dubai Islamic Bank and Noor Islamic Bank are mandated on the deal. Shares in Emaar, which is 32 per cent owned by the Dubai government, were trading 1.3 per cent higher at 0800 GMT on the Dubai bourse. Tags Breaking News Emaar 0 Comments You might also like Emaar nine-month net profit sees 43% hike bolstered by property sales Emaar plans a hike in dividends in 2023, no IPO for noon: Mohamed Alabbar Emaar reports net profit of Dhs5.8bn for first nine months of 2022 Special report: How UAE’s construction sector is back to business