Emaar said to secure $1.5bn sharia-compliant loan

Dubai-based Emaar Properties has reportedly secured a $1.5 billion sharia-compliant loan from five local lenders. Emaar, developer of the world's tallest building, has raised the seven-year facility which will pay 175 basis points over the London interbank offered rate (Libor). This is half the rate of the existing loan, which was due to run until 2016 and had an interest rate of 350 bps over Libor. The funds have been provided on an equal basis by three Dubai lenders - Dubai Islamic Bank, Mashreq andNoor Bank - and two from Abu Dhabi - First Gulf Bank and National Bank of Abu Dhabi. The lenders plan to market the transaction to other banks in a syndication phase, which could begin in the next two weeks.