الرئيسية
* Facility backed by Dubai Mall - statement
* Favourable rate secured in difficult funding environment
(Adds quotes, further background)
By David French
DUBAI, DEC 19 - Dubai's Emaar Properties, the
emirate's largest real estate developer, has put up its crown
jewel asset -- Dubai Mall -- to secure $1 billion of lending to
help refinance upcoming debt amid difficult funding conditions.
The two-tranche facility, which consists of both
sharia-compliant and conventional funding, is split between a
five-year tranche and an eight-year amortising loan and is
backed by its mammoth Dubai Mall, the company said in a
statement on Monday.
Dubai Islamic Bank, National Bank of Abu Dhabi
and Standard Chartered are providing the
finance, which carries a margin of 350 basis points and will be
initially used to repay an existing $300 million facility taken
out in 2010, Emaar said.
"These days no one will lend without a collateral and
borrowing costs are going up," said an Abu Dhabi-based real
estate analyst, who did not wish to be identified. "They are
getting a favourable rate as they put this asset as collateral."
Dubai Mall, one of the world's largest malls, with an indoor
Olympic-sized ice skating rink and a two-storey high aquarium,
was the last debt-free asset which Emaar had on its books, the
analyst added.
The use of the mall was the key behind getting the deal
done, a banker with knowledge of proceedings said.
"Emaar is a strong credit, and Dubai Mall is its crown
jewel," he said. "There's so much cash coming out of it, which
provides the whole rationale for the deal."
* Favourable rate secured in difficult funding environment
(Adds quotes, further background)
By David French
DUBAI, DEC 19 - Dubai's Emaar Properties, the
emirate's largest real estate developer, has put up its crown
jewel asset -- Dubai Mall -- to secure $1 billion of lending to
help refinance upcoming debt amid difficult funding conditions.
The two-tranche facility, which consists of both
sharia-compliant and conventional funding, is split between a
five-year tranche and an eight-year amortising loan and is
backed by its mammoth Dubai Mall, the company said in a
statement on Monday.
Dubai Islamic Bank, National Bank of Abu Dhabi
and Standard Chartered are providing the
finance, which carries a margin of 350 basis points and will be
initially used to repay an existing $300 million facility taken
out in 2010, Emaar said.
"These days no one will lend without a collateral and
borrowing costs are going up," said an Abu Dhabi-based real
estate analyst, who did not wish to be identified. "They are
getting a favourable rate as they put this asset as collateral."
Dubai Mall, one of the world's largest malls, with an indoor
Olympic-sized ice skating rink and a two-storey high aquarium,
was the last debt-free asset which Emaar had on its books, the
analyst added.
The use of the mall was the key behind getting the deal
done, a banker with knowledge of proceedings said.
"Emaar is a strong credit, and Dubai Mall is its crown
jewel," he said. "There's so much cash coming out of it, which
provides the whole rationale for the deal."