Dubai-based property developer Emaar Properties has hired banks to arrange investor meetings as the company plans to issue 10-year dollar Islamic bonds. It will mark the company’s re-entry into international debt markets.
According to reports, Standard Chartered has been hired by Emaar Properties to coordinate the issuance of Islamic bonds. Other banks involved are Deutsche Bank, First Abu Dhabi Bank, Emirates NBD Capital, Mashreq Bank, Dubai Islamic Bank, and Sharjah Islamic Bank.
The Islamic bond issuance is a part of Emaar Properties’ $2 billion debt raising programme. The recent developments can be attributed to the performance of Dubai’s property market which has seen a substantial price drop due to oversupply.
Vice President of the United Arab Emirates, Sheikh Mohammed bin Rashid Al Maktoum has recently announced that Dubai is setting up a real estate planning commission which will act as a regulatory body to avoid competition between government-backed companies and private firms. The commission was also established to control the oversupply in Dubai’s property market.
Emaar Properties is also expected to be a part of the committee, known as the Higher Committee for Real Estate Planning. Other members of the committee include state-owned developers such as Nakheel.
The company, which is Dubai’s largest listed developer, reported a 52 percent increase in sales in the first six months of 2019 which stood at $2.571 billion.
Recently, Emaar Properties’ hospitality wing unveiled its seventh hotel under its premium luxury Address Hotels and Resorts brand in Dubai.
Chris Newman, chief operating officer of Emaar Hospitality Group had told the media that, “With its central location in Downtown Dubai, the famed Address service experience, proximity to the most popular attractions in Dubai, and its diverse selection of amenities will add to the appeal of Address Fountain Views to leisure and business visitors.”