Emaar to sell $375m of convertible notes

30 September 2010

The issue may raise as much as $500m

Emaar Properties plans to raise at least $375m by selling five-year convertible notes to help repay short-term debt, Bloomberg has reported. Including an oversubscription option, the issue may raise as much as $500m, the company said in a statement. Emaar had Dhs9.5bn ($2.6bn) of outstanding debt at the end of June, according to its quarterly results filing. Of that, Dhs5.2bn is due within 12 months. “It’s very obvious that they are replacing short-term debt with long-term debt, which is the smart thing to do,” Ahmed Badr, a Dubai-based analyst at Credit Suisse Group, told the news service.

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