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Dubai’s Emaar plans benchmark dollar bond – source
Developer plans 5.5 year bond - source ;Pricing for bond expected Thursday; Bond as part of developer's $2 bln program
January 26, 2011 3:58 by Reuters
Emaar Properties, builder of the world’s tallest building, plans to issue a benchmark dollar-denominated bond as part its $2 billion Islamic bond program, according to a source familiar with the matter.
The pricing of the five-and-a-half year Islamic bond or sukuk, is expected to be on Thursday, a document from the source said.
Benchmark bonds are typically at least $500 million in size.
Emaar picked HSBC, RBS and Standard Chartered to arrange fixed income meetings ahead of a possible bond issue, the developer said last week.
The meetings for the proposed bond issue began on Jan. 21.
The property market in the United Arab Emirates suffered in the wake of the global financial crisis as developers overstretched themselves in the pursuit of ambitious projects.
Dubai’s ruler has a 31 percent stake in Emaar which built the Burj Khalifa. The company issued a five-year $500 million convertible bond last year with coupon of 7.5 percent to refinance short term liabilities.
Emaar shares were up 0.6 percent on the Dubai bourse Wednesday at 0950 GMT.
(Reporting by Dinesh Nair, Editing by Shaheen Pasha)