By Babu Das Augustine, Deputy Business Editor  www.gulfnews.com

Dubai: Emaar Properties yesterday raised Dh3.6 billion through a syndicated financing facility.

The Dubai Mall
The Dubai Mall

The facility consists of both Islamic and conventional components. An Emaar spokesperson told Gulf News that Dh2.8 billion of the facility is Islamic while Dh800 million is conventional.

Dubai Islamic Bank (DIB), National Bank of Abu Dhabi (NBAD) and Standard Chartered Bank acted as mandated lead arrangers and bookrunners.

“While Standard Chartered subscribed Dh1.8 billion of the facility, DIB and NBAD subscribed Dh1 billion and Dh0.8 billion, respectively,” the Emaar spokesperson said.

The syndicated facility is secured against Dubai Mall and is priced 350 basis points above the benchmark rates.

In the third quarter of this year independent analysts had estimated the company’s total cash requirement for the year at Dh12.2 billion by year-end.

“We expect the company to incur capex of Dh2.6 billion on its projects and operating expenses and interest cost of Dh2.9 billion in the same period,” said a research note from Rasmala, an investment bank.

With the total liquidity of the company an estimated Dh13 billion, the report said Emaar faced a near-term financing requirement of Dh1 billion.

“Initially, the facility will be utilised to repay the existing $300 million facility taken in 2010. Subsequent drawdowns will be made in 2012 as required,” Emaar said in a statement.

The remaining portion of the syndicated facility will be used for “repayment of other Emaar loans to extend the maturity from short term to long term,” Emaar spokesperson said. More info

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