International lenders did not disclose specificities, but said it was part of global cost-cutting plansNovember 26, 2015 11:32
Emaar seeks $800 mln loan backed by Dubai Mall -sources
Dubai's Emaar Properties , builder of the world's tallest tower, is using four of its shopping malls including the Dubai Mall as collateral for an $800 million two-tranche loan, banking sources said on Thursday.
October 2, 2011 1:53 by Reuters
Dubai’s Emaar Properties , builder of the world’s tallest tower, is using four of its shopping malls including the Dubai Mall as collateral for an $800 million two-tranche loan, banking sources said on Thursday.
The facility, which consists of a five-year tranche and an eight-year amortising loan, is being arranged by Dubai Islamic Bank , National Bank of Abu Dhabi and Standard Chartered , four sources told Reuters.
Emaar, the Gulf’s largest listed developer, is using four of its Dubai malls as collateral for the deal, two of the bankers said.
Dubai Mall, one of the world’s largest malls, with an indoor Olympic ice skating rink and a two-storey high aquarium, is on the list, as are Dubai Marina Mall and the Gold and Diamond Park shopping centre, the sources said.
However, Emaar, builder of the world’s tallest building, the Burj Khalifa tower, said in an emailed statement that the report was “categorically incorrect”.
“Emaar continuously explores various options for raising finance to meet our long-term development plans, including refinancing of debts,” it said.
“Such details regarding our financing plans will be disclosed at the appropriate time.”
Emaar last raised money from banks in May, when it signed a $700 million sharia-compliant forward start facility which extended the maturity of part of a $1 billion facility due to expire in February 2012 until May 2014.
A forward-start facility is a loan provided by an group of lenders that agree to provide new funding upon the maturity of an existing loan. Not all members of the existing lending group are required to join up under a forward start.
Emaar raised $500 million from an Islamic bond in January.
Emaar’s second-quarter net profit plunged 69 percent as it handed over fewer homes and wrote off its investments in Dubai Bank, the developer said in July.
On Monday, Standard & Poor’s raised its outlook on the firm from negative to stable on account of recurring cash flow generation and the improving performance of Emaar’s hospitality assets. It affirmed Emaar’s ‘BB’ rating at the same time.
(Reporting By David French; Editing by Amran Abocar)