Emaar Properties, the biggest listed developer in the UAE, has appointed banks for a possible US dollar-denominated Regulation S senior sukuk (Islamic bond).

Emaar has mandated the UK’s Standard Chartered as sole global coordinator and Bahrain-headquartered Arab Banking Corporation (Bank ABC), the local Dubai Islamic Bank (DIB), Emirates NBD Capital, First Gulf Bank (FGB), Mashreq, National Bank of Abu Dhabi (NBAD), Noor Bank, and Union National Bank (UNB) as joint lead managers and bookrunners, the developer said in a statement to the Dubai Financial Market, where its shares are traded.

The lenders will start arranging fixed-income investor meetings in Asia, the Middle East and Europe starting from 4 September, the statement said, adding that a sukuk issue may follow under Emaar’s $2bn Trust Certificate Issuance Programme, subject to market conditions.

Emaar, which is rated Baa3 by the US’ Moody’s Investors Service and BBB- with a stable outlook by the US’ Standard & Poor’s (S&P), is 29.22 per cent owned by Investment Corporation of Dubai.

The statement did not say how much Emaar could possibly raise from the deal and what the proceeds will be used for.

Banks and sovereigns in the region are lining up to tap debt capital markets ahead of the possible interest rate increase by the US Federal Reserve, which will increase the cost of borrowing in the GCC, where currencies are largely pegged to the dollar.

The developer is currently building a 928-metrw record-breaking tall tower as part of its Dubai Creek Harbour development. It is expected to tender the construction contracts in October for the project.