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UAE: In
a bourse filing to the Dubai Financial Market yesterday, Emaar Malls
Group announced that it will be conducting a series of fixed income
investor meetings in Asia, Europe and the Middle East commencing 8th
June 2014. Following which, the wholly-owned subsidiary of global
property developer Emaar Properties may subsequently issue a benchmark
US-dollar Regulation S Sukuk – traditionally understood to be at least
US$500 million, subject to market conditions.
Dubai Islamic Bank, Emirates NBD
Capital, FGB, Mashreq, Morgan Stanley, National Bank of Abu Dhabi, Noor
Bank, and Standard Chartered Bank will be arranging the meetings on
behalf of Emaar Malls. The subsidiary was recently assigned a first-time
provisional issuer rating of ‘Baa2’ by Moody’s. The issuer rating carries
a stable outlook and is provisional subject to the confirmation of
certain property titles being transferred from its parent company on a
non-cash basis.
Earlier this week, Emaar Malls secured
a seven-year US$1.5 billion Shariah compliant financing scheme from a
consortium of UAE banks. At a profit rate of Libor + 1.75% per annum, the
funds were procured in order to optimize its capital structure prior to
its planned initial public offering (IPO). Emaar Properties announced in
the last week of May that it seeks to list 25% of Emaar Malls on the
Dubai Financial Market; a move from earlier plans to list on NASDAQ
Dubai. The IPO has been estimated to value at approximately AED9 billion
(US$2.45 billion).
Emaar Properties last tapped the Sukuk
market in 2012 with a US$500 million issuance maturing in 2019. Emaar
Misr for Development, its Egyptian subsidiary is also considering raising
funds via Sukuk and an IPO either this year or the next. For the first
quarter of 2014, Emaar Properties recorded a 55% increase in net profits
to AED863 million (US$234.91 million), compared to the same period in
2013. Property sales in that period almost doubled from the year prior,
standing at AED5.92 billion (US$1.61 billion).
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