Developer seeking more cash for refinancing needs
Emaar Properties, the Dubai-based developer that built the Burj Khalifa, has appointed three banks to arrange a potential bond issue.
The UK’s HSBC, Royal Bank of Scotland, and Standard Chartered have all been appointed to arrange a series of investor meetings in Asia, the Gulf and Europe starting on 21 January.
Emaar said in a statement that “a transaction may follow subject to market conditions”.
The company last accessed the bond markets in September 2010 when it raised $500m through a five-year bond that paid 7.5 per cent interest. That deal was a convertible bond, which offers investors the opportunity to convert their investment into equity in the firm.
Analysts say the cash raised from the issue will be used to repay contractors and pay off debt. The low credit growth in the UAE, and elsewhere in the region, means more companies are turning to the bond market to raise capital.
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