IslamicFinance.de

Dubai's Emaar Properties is set to raise $500 million from the sale of sukuk. The transaction has received orders of nearly $2.5 billion, including $300 million of interest from the banks arranging the deal. The deal is part of a $2 billion debt programme and is offering investors a profit rate equivalent to 235 basis points over mid-swaps.
Standard Chartered acts as coordinator. Other banks leading the transaction are Dubai Islamic Bank, Deutsche Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreqbank and Sharjah Islamic Bank.

Dubai’s Emaar Properties has hired banks to arrange investor meetings ahead of the issuance of 10-year dollar sukuk. Emaar Properties will meet investors in Asia and London starting on Sept 6. Standard Chartered was hired to coordinate the deal. Other banks leading the transaction are Dubai Islamic Bank, Deutsche Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreq Bank and Sharjah Islamic Bank.

GII Islamic REIT has acquired an AED 117.54 million two-floor office property in Downtown Dubai developed by Emaar Properties. The property is under a lease agreement with a global professional services firm, whose term will end after three years. The property was sold in consideration of $32 million with gross yields of around 8%. According to Mohammed AlHassan, CEO of GII, this is a high-quality acquisition for the REIT, and is consistent with GII REIT’s strategy to distribute 8% annual dividend to investors net of all costs.

Emaar Properties and Kuwait’s Burgan Bank raised $1.25 billion (Dh4.59 billion) from bond sales. Emaar sold $750 million of 10-year Islamic securities, pricing them at 225 basis points over the benchmark midswap rate. Burgan Bank raised $500 million from a sale of five-year dollar securities that will carry a spread of 215 basis points over midswaps. Corporate bond sales are picking up amid a rush of sovereign issuance in the oil-exporting region. Saudi Arabia is expected to raise at least $10 billion in October from its first offering of international securities.

Emaar Properties has mandated Standard Chartered Bank as Sole Global Coordinator of its new US dollar Sukuk. Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Gulf Bank, Mashreq, National Bank of Aub Dhabi, Noor Bank, Standard Chartered Bank and Union National Bank are mandated as Joint Lead Managers to arrange investor meetings in Asia, the Middle East and Europe commencing on 4 September 2016. USD 2 billion Trust Certificate Issuance Programme may follow subject to market conditions. FCA/ICMA stabilization applies.

Dubai-based Islamic mortgage lender Amlak Finance has said it is in talks with Emaar Properties to launch a partnership to develop land in “distinctive locations”. Amlak's shares soared 15 percent, the maximum allowed in a day on the Dubai Financial Market, after the company announced the plans. Amlak chief commercial officer Adnan Al Awadhi told Al Khaleej newspaper that it is also in talks with the emirate’s Land Department to revive stalled projects. Last month, Amlak recorded a 77 percent plunge in first-quarter profit because of amortisation charges. Amlak reported that net profit fell to AED3.7 million ($1.01 million) from AED16 million in the same period last year.

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.

Last month, two UAE real estate developers - Al Futtaim Group and Emaar Properties - announced a big project in Egypt. Not only was this a boost to the country’s property market but it also acted as a sign of a revival of cross-border investment in the region. According to the two companies, they plan to invest about 5bn Egyptian pounds ($820m) in building the "Cairo Gate" which will be situated off the Cairo-Alexandria desert highway. The complex will be 65 hectare big and will be build around a shopping mall. An office park, a luxury hotel, schools, medical facilities and residential space are included in the plan.

It is now official that the Dubai government, acting under directions from His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE, Ruler of Dubai, has taken over Dubai Bank with no delay.
It seems that the government will put an unspecified amount of cash into DB, completely weakening the holdings of Dubai Holding and Emaar Properties.

Emaar Properties received Dh214.43 million from its subsidiary, Islamic mortgage provider Amlak Finance in 2010, and believes that the remainder Dh712m that its arm owes it is "fully recoverable". This was a statement given in Dubai bourse.

Press Release

Several Dubai Government-Related Entities Downgraded And On Watch Negative Following
Debt Restructuring Announcement

DUBAI (Standard & Poor's) Nov. 25, 2009--Standard & Poor's Ratings Services said it
had taken rating actions on a number of Dubai-based government related entities
(GREs) and transactions (for full details see "Ratings List" below). Standard &
Poor's has downgraded DIFC Investments LLC, DP World Ltd., Jebel Ali Free Zone
(FZE), Dubai Holding Commercial Operations Group LLC (DHCOG), and Emaar Properties
PJSC. All of these entities have been placed on CreditWatch with negative
implications. The ratings on Dubai Multi Commodities Centre Authority (DMCC) were
affirmed, although they were placed on CreditWatch negative. A CreditWatch negative
placement also applies to the notes issued by Thor Asset Purchase (Cayman) Ltd.
(Thor), which are securitized by cash flows from a revolving pool of existing and
future receivables originated by Dubai Electricity and Water Authority (DEWA; not
rated).

The rating actions are the result of the announcement on Nov. 25 of the