Emaar Properties will convert notes worth $476m into shares, at a conversion price of AED4.38 per share.

That will result in the Dubai-based developer’s share capital increasing to AED6.5bn ($1.77).

The Luxembourg Stock Exchange-listed notes, which mature on 20 December 2015, are part of a convertible bond issued in 2010. They were issued by Emaar’s subsidiary Pyrus, which is based on the Virgin Islands.

The developer, which is listed on the Dubai Financial Market, is profiting from the recovery of Dubai’s construction market. It is moving forward with several major projects in the Downtown Dubai district, and in December, signed a deal with state-owned Dubai World Central to develop an integrated urban centre and golf destination within the area.